Farming
Confidence drops as markets stay volatile
INCREASED volatility and falling commodity prices across the sectors have seen farmers’ confidence drop to lower levels than last year, a new survey by the NFU has revealed. Confidence, specifically in the arable and dairy sectors, has declined significantly from 12 months ago, but farmers across the industry have told NFU that the three-year forecast is much more positive. As part of our sixth annual confidence survey, members told the NFU that they expected negative impacts on their businesses in the coming year relating to regulation and legislation (69%); CAP reform (51%); output prices (56%) and input prices (46%). Output prices are the second most important factor affecting confidence, as members have seen their margins squeezed as a result of the fall in farmgate prices greater than the reduction in their costs of production.
The survey also shows that in the last two years twice as many farmers have seen their profits declining, with 49% of respondents now reporting declining profits (42% last year). Some 7% think their business may not survive – the highest figure in any year so far. Those figures were even more worrying in the dairy sector, where almost 20% of dairy respondents declared that their business may not survive, a rise from 3% in 2014. NFU President Meurig Raymond said: “This year has seen British farming face massive challenges, not least of all falling farmgate prices, particularly within the dairy and arable sectors. “Given the levels of volatility we have seen across the industry it is no surprise that we have seen farmer confidence in the negative.
It shows very clearly that we are absolutely correct to urge Defra and RPA to make every effort to speed delivery of BPS payments and that we press processors and retailers for a fairer return for the highquality food that farmers supply. “Regulation remains the key blocker for our members’ confidence. This gives a clear message that government must to do all that it can to ease regulatory pressure. Confidence is critical because it influences investment and production intentions. If we want our farms to compete in an increasingly global market place and make the most of emerging export opportunities, we need government action rather than rhetoric when it comes to reducing red tape. This is why NFU is calling for action in 2016 to reduce the frequency of farm inspections and improve their coordination.
“Our research has shown that looking forward, farmers have a generally optimistic outlook on their medium-term prospects. The government has a golden opportunity, in its 25-year Food and Farming Strategy, to map the course for a more confident and profitable industry. The NFU urges government, retailers and the public to back British farming to ensure this optimism is not misplaced.” More farmers said they want to invest in diversification, training and energy efficiency in the three years to come. Those intentions are backed by the higher levels of borrowing in agriculture registered for the first nine months of the year.
The volatility of markets was a key part of evidence given by the NFU to House of Lords committee on December 16. The NFU has given evidence to a group of Peers on how agricultural price volatility impacts farm businesses. Head of food and farming Phil Bicknell appeared before the House of Lords Energy and Environment Sub- Committee as part of its enquiry into market prices and wider resilience among farmers. It follows a similar enquiry being held by MPs on the House of Commons Efra Select Committee into farmgate prices.
With volatility characterising most agricultural markets, and the associated pressures on cash flow, profitability and long term business planning, the committee heard about the challenges of price volatility faced by NFU members. Mr Bicknell emphasised that sustained price volatility risks the viability of farm businesses, leads to reduced investment levels, and is a challenge for the whole food supply chain rather than just a farming issue.
He said: “Volatility is an ever increasing characteristic of agricultural markets, particularly as we’ve seen farm policy back away from market management and control to less marketdistorting policy tools. “Farming is a very resilient industry. Our industry is made up of farmers who are past masters at dealing with anything that’s thrown at them – whether that’s periods of low prices or the recent devastating floods that hit farming communities in Northern England. “But it’s important that we’re an industry that thrives rather than just survives and is geared up for future food production. A boom and bust cycle of prices benefits can be damaging in the long run.”
Farming
Bluetongue control measures in Wales

THE WELSH GOVERNMENT has outlined the measures which will be in place for the active transmission period of Bluetongue.
In response to increased risk of Bluetongue, including temperatures that are consistent with the active transmission period, some measures are being introduced from 20th June in relation to the current Restricted Zone in England.
However:
- There is no ban on movements of livestock from England and there is no hard border. (All livestock can be moved subject to licenses, qualifying vaccination for cattle and pre-movement testing as appropriate)
- Livestock movements within Wales are not subject to Bluetongue restrictions.
- Livestock moves from Wales to the Restricted Zone in England are not subject to Bluetongue restrictions.
From today (Friday, June 20), all animals that need to move from the current Restricted Zone in England to live in Wales, will need a movement licence issued by APHA which confirms the animals have:
- a valid pre-movement test
- vaccination with the Boehringer Bultavo-3 vaccine (for cattle only)
- have no clinical signs of illness
The Welsh Government will allow cattle fully vaccinated with Boehringer Ingelheim’s Bultavo-3 vaccine, to move under licence, from a Restricted Zone to Wales without a pre-movement test.
This applies from 20th June and is based on the latest information from vaccine manufacturers regarding the prevention of viraemia by available vaccine products.
All sheep must be pre-movement tested and require an accompanying licence to move into Wales to live from the RZ in England, as no vaccine products currently meet the requirements for protecting sheep from BTV-3 to allow them to move out of the RZ.
Arrangements will also be put in place to allow livestock to move to and from shows and sales in the RZ from 20 June, subject to meeting licencing conditions that are set out online at Bluetongue virus (BTV) | GOV.WALES .
These policies will continue to apply after 1 July when the England-wide RZ comes into effect.
Moves direct to slaughter can continue from 20th June and these livestock moves do not require a pre-movement test.
There will be an additional requirement from 1 July when receiving abattoirs in Wales must be designated and meet appropriate licencing conditions to handle Bluetongue-susceptible animals.
Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said: “My goal at this stage remains to keep Bluetongue out of Wales for the benefit of our animals and those who keep them.
“The economic and farmer wellbeing concerns caused by dealing with severe Bluetongue are first and foremost in my mind.
“I also want to allow more time to observe the severity of the disease in England, and for keepers to vaccinate their herds and flocks.
“I have made clear the thinking behind my decision in the Senedd this week, but I want to keep it under review. Should the evidence change, and we need to alter the policy, we will revisit and review this in a dynamic way.
“Our shared priority over the coming weeks is to promote vaccine take-up. All representatives at the Roundtable I recently convened were unanimous in their support for vaccination as the best method of protecting livestock and reducing the impacts of Bluetongue.”
“I cannot in all conscience invite Bluetongue into Wales, but we are prepared to adapt to the evolving disease situation.”
Farming
‘Total chaos and havoc’: Senedd Members lambast bluetongue response

SENEDD Members denounced the Welsh Government’s response to bluetongue, with limits on moving livestock, warning the approach will cause total chaos and havoc for farmers.
Samuel Kurtz, who is from a farming family, expressed deep concern about the Welsh Government’s handling of the disease, saying it “falls far short of what farmers deserve”.
The Conservatives’ economy secretary said Senedd Members received no briefing from the Deputy First Minister nor the chief veterinary office on the science behind the decision.
Mr Kurtz warned: “There has been no economic impact assessment despite the far-reaching consequences for our rural community.
“And perhaps most troubling of all, the decision was issued via a written statement on a Thursday afternoon – just after the Senedd week had ended, ensuring no scrutiny, no questions and no answers until today.”
He told the Senedd: “We all understand the importance of protecting Welsh livestock from bluetongue but the measures imposed are not only excessive, they’re unworkable.”
“Requiring pre-movement testing for all live imports, even vaccinated animals, might look reasonable on paper but – in the real world of Welsh farming – it’s chaos.
“I’ve spoken with a farmer in mid Wales now facing a bill of at least £18,000 just to bring their own sheep back from England – a field that is only five miles down the road. That cost covers testing, transport delays, logistical headaches, and that is not an isolated incident.”
Mr Kurtz said already under-strain livestock markets now face collapsing confidence, with movement restrictions “sowing uncertainty” at the height of the trading season. “This isn’t protecting the industry; it’s paralysing it,” he warned.
He put the cost of vaccinating all livestock in Wales at £32m – £6 a cow and £3 for every sheep or goat – placing a “staggering financial” burden on a struggling industry.

During a statement on the Welsh Government’s approach to bluetongue on June 17, Deputy First Minister Huw Irranca-Davies said policy will be kept under regular review.
“If the evidence changes on the ground, we can revisit this,” he said, claiming it was not feasible to conduct an economic impact assessment.
Mr Irranca-Davies, who is responsible for rural affairs, told Senedd Members it was a finely balanced decision taken because “we think there is a fighting chance here to hold this back”.
The former MP and Defra minister clarified that testing requirements will not apply for movements to and from land within a farm’s combined holding.
He said the Welsh Government has successfully kept bluetongue out of Wales this year but an all-England restriction zone obliged Welsh ministers to review their own approach.
“I cannot and will not in good conscience simply invite bluetongue into Wales,” he stressed.

But Llŷr Gruffydd, Plaid Cymru’s shadow rural affairs secretary, said: “You’ve explained to us that part of this rationale is to buy time but I have to say: where have you been? We’ve known for months and months, if not years, that bluetongue is on its way.”
Mr Gruffydd added: “I really fear that your decision and your policy decision this week will bring even more worry, even more disruption and even more concern in its wake.”
He advocated instead “getting ready for the inevitable” vaccination and managing of bluetongue rather than “ploughing” scant resources into costly testing and licensing.
The politician warned: “It’s going to disrupt the functionality of the whole agricultural ecosystem and that in itself could be more damaging than dealing with bluetongue.”
Calling for clarity on plans, he asked: “Will you incrementally be moving the restriction zone further into Wales or, if it does happen, will you then immediately move to an all-Wales restricted zone, which, frankly, is what I think you should’ve done in the first place?”
Mr Irranca-Davies reiterated the policy will be under live review before hitting back: “Where have we been?’ We’ve been keeping the disease out of Wales.”
He said: “It is not inevitable, as you and Sam seem to be saying, that the disease will walk in the door. What we are trying to do is keep that door as firmly shut as we can…. but it is a heightened possibility as soon as the border is snapped out to the England-Wales border.”
Labour’s Lesley Griffiths, a former rural affairs minister who represents the border constituency of Wrexham, echoed concerns centred on testing and lab capacity.
Welsh Liberal Democrat leader Jane Dodds said: “For farms on the border, many of which I represent, and I know others here do, there is severe concern, severe stress on farmers.
“The mental health weight on them is already considerable, and this is another thing on top.”

Farming
New for Farmers: Managing Breeding Bulls workshop with Farming Connect

FARMING CONNET is offering a fully funded, Lantra-accredited animal health and welfare training workshop – ‘Managing Breeding Bulls’. It will be delivered by approved local vet practices across Wales and is designed to support farmers to enhance their herd’s performance and ensure the well-being of their bulls on farm.
Attendees will gain a deeper understanding of the importance of choosing the right bull for your herd’s performance and productivity. The workshop will also provide insight into the key factors to consider when assessing a bull’s suitability for breeding, including Body Condition Scoring.
It will give an opportunity to learn about the various reasons for bull infertility and discover effective strategies for its prevention and control. The vital role of pre-breeding fertility testing in ensuring a successful breeding season will also be explored.
The workshop will help you become aware of the essential routine treatments and nutritional considerations for preparing bulls before breeding as well as learning to identify and manage the biosecurity risks associated with introducing new bulls from other herds.
Finally, the workshop will look into some of the traits that can be assessed via Estimated Breeding Values (EBVs) and how to use them to aid in making the best bull selection for your herd.
This workshop is designed to equip you with practical knowledge to enhance your herd’s health and productivity.
‘The bull plays a pivotal role in the fertility of herds and getting it right/wrong has a significant impact on the productivity of the upcoming year. Making sure bulls are fit for purpose is one of the first steps to ensure a successful breeding and calving season.’ Shares Clara Valderamma, Farm First Vets who is one of the approved vets delivering the new training workshop.
Workshop attendance will be logged on the attendee’s ‘Storfa Sgiliau’ CPD record along with a Lantra Awards ‘certificate of attendance’.
The training workshops are fully funded but to qualify for that funding, all attendees must be registered with Farming Connect and complete a Personal Development Plan (PDP).
For dates and details of upcoming workshops visit the Farming Connect website https://businesswales.gov.wales/farmingconnect/ or contact your local development officer to find out more.
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