Farming

Farm incomes fall for third straight year

Published

8 years ago

November 4, 2016

Agriculture must be fairly dealt with: Meurig Raymond

THE LATEST data on farm incomes, updated by Defra last week, shows overall farm incomes fell for the third consecutive year in 2015/16.

The strengthening pound (ahead of the Brexit vote) and falling prices compounded losses for some sectors.

However, within this there were some success stories. The figures – which give figures for the year to March 2016 – show that while cereal production, horticulture and general cropping performed better than expected, all other farm types performed poorly. Incomes from general cropping rose by over 20% on the year, to £62,900 and horticulture incomes rose by 11% to £35,100; cereal growers fared worse, with incomes falling to £35,600 (though this figure was better than expected).

All livestock sectors fared worse than expected, but pig producers took the biggest hit, with incomes more than halved, down to £22,000 due to increased input costs and oversupply. Dairy incomes were almost halved, too, down to £42,300, though some costs were also reduced, including purchased feed and forage.

Commenting on the figures, NFU President Meurig Raymond said they highlight the importance of the NFU’s lobbying ambitions in light of the Brexit vote.

The union president said: “The NFU is continuing to work with government to ensure they provide the right support for our members – from pushing for burdensome regulation to be removed that remains a major block to growing competitiveness for most farm businesses and policy decisions based on sound science.”

Discussing the prospects for environmental regulation post-Brexit at a meeting of the House of Lords’ Environment Sub-Committee on Friday (Oct 28), witnesses from conservation organisations noted that the UK Government’s own research aimed at identifying ‘red-tape’ (useless and constraining regulations) or ‘gold-plated’ regulation that went above the EU’s minimum standards had been hard pressed to identify any whatsoever. Lords who served on these red tape committees when the Coalition government came to power agreed with the witnesses and admitted that they had difficulty finding any such legislation.

Both groups’ observations rather invite the comment, ‘Well they would say that, wouldn’t they?’ and, in the case of conservation groups such as the RSPB and National Trust ignores their efforts to derail (successfully) those EU regulations which they felt were not in their own interests.

Nevertheless, on Friday, Mr Raymond continued: “These latest farm business income figures underline the need to ensure that British agriculture is dealt with fairly when Government starts its negotiations for a post-Brexit Britain. The most immediate issues confronting the farming sector are trade and access to labour – these must be at the heart of any discussions for the country’s future farm policy so that our industry is able to achieve its true potential.”

Commenting on some of the Union’s work to improve conditions for farmers in their supply chain, Mr Raymond added: “In recent weeks, we have focused on urging dairy processors to be open and honest in a bid to build better, fairer supply chain relationships and to ensure contracts that are fit for purpose. We regularly meet with retailers with recent successes on those signing our Fruit and Veg Pledge that will provide security for suppliers, fair terms and price certainty. We meet with banking leaders to ask for their continued support for the industry in these challenging times.”

Farming

Dairy farmers hit hard as average incomes plunge by up to 62%

Published

4 days ago

January 16, 2025

Tom Sinclair

DAIRY FARMERS in Wales have suffered a major financial blow, with incomes falling by 62% in real terms between April 2023 and March 2024, according to recent figures. Average farm business income during this period dropped to just £70,900—a significant decline from previous years.

FALLING MILK PRICES

The primary cause of this downturn has been a sharp reduction in farmgate milk prices. After record highs in 2022, milk prices fell dramatically in early 2023, leaving many farmers struggling to make ends meet. This drop in revenue has had a ripple effect across the sector.

RISING COSTS

At the same time, input costs for feed, fertilizer, and fuel have remained stubbornly high. Although there has been some stabilization in feed prices, the overall cost of production continues to strain farm finances. Many farmers report that rising costs are eroding already slim profit margins.

LABOUR CHALLENGES

Labour shortages have also played a role. The dairy sector, which relies heavily on skilled workers, has faced difficulties in recruiting staff, a problem made worse by post-Brexit immigration rules. As a result, many farms have had to pay higher wages, further cutting into their earnings.

REGULATORY BURDENS

Environmental regulations have added another layer of financial stress. Farmers have been required to invest in costly infrastructure, such as improved slurry storage systems, to meet new standards. While these measures aim to protect the environment, they have placed additional pressure on farmers already grappling with tight budgets.

UNPREDICTABLE WEATHER

Weather volatility has also contributed to the challenges. Unpredictable conditions have impacted forage quality and availability, affecting milk yields and increasing costs for supplementary feed.

CALLS FOR SUPPORT

Industry leaders are calling for greater support to help dairy farmers weather the storm. They are urging the government to provide relief measures and address the ongoing issues of market volatility and regulatory costs.

Farmers’ Union of Wales Deputy President, Dai Miles said: “The latest statistics on Farm Business Incomes in Wales demonstrate the economic reality of attempting to maintain levels of profitability against a backdrop of increasing costs and red tape.

“Dairy farms have seen significant declines due to both an average increase of 10% in overall farm business costs coupled with reductions in income.

“Across the board, however, the proportion of farm businesses in Wales generating a negative income continues to increase to over 20%. At the very least, this demonstrates the need for the future Sustainable Farming Scheme to offer an equal level of economic stability, currently provided through the Basic Payment Scheme, the maintenance of which for 2025 has been welcomed by the industry.”

LOOKING AHEAD

Despite the challenges, some industry analysts remain cautiously optimistic, suggesting that stabilizing milk prices and improved market conditions could provide relief in the coming year. However, without significant intervention, many fear that the sector may continue to struggle.

Dairy farming has long been a cornerstone of the Welsh economy, and the current crisis serves as a stark reminder of the need for robust support for this vital industry.

Farming

Farmers’ Union of Wales responds to Foot and Mouth case in Germany

Published

4 days ago

January 16, 2025

Tom Sinclair

THE FARMER’S UNION OF WALES has responded to reports of a confirmed case of Foot and Mouth disease (FMD) in Germany.

The disease was identified on 10 January in a water buffalo on a farm in Märkisch-Oderland, Brandenburg, marking Germany’s first case of FMD in nearly 40 years.

Foot and Mouth disease does not pose a risk to human health or food safety.

In response, the UK Government has implemented a ban on the import of cattle, pigs, and sheep from Germany. Additional measures include the suspension of import health certificates for live animals and fresh meat from species susceptible to Foot and Mouth disease.

Commenting on the development, FUW President Ian Rickman said:

“The recent case of Foot and Mouth disease in Germany will be a source of concern for livestock farmers across Europe.

The news inevitably brings back memories of the devastating impact the disease had on the agriculture sector and the countryside in 2001. This serves as a timely reminder of the importance of stringent border checks to prevent such diseases from entering the UK.

We welcome the proactive steps taken by the German authorities and the UK Government’s decision to ban livestock imports from Germany. As the situation unfolds, we will closely monitor developments and encourage livestock keepers to remain vigilant.”

Farming

West Wales dairy farm leads the way in sustainable agriculture

Published

4 days ago

January 16, 2025

Tom Sinclair

A Welsh farming family is making significant strides in reducing the environmental impact of their dairy business, achieving an impressive carbon footprint of 1.06kg CO2 equivalent (CO2e) per kilogram of fat and protein corrected milk (FPCM).

Roger and Catherine Howells, who run Blaengelli Farm in Whitland, attribute this achievement to years of investment in infrastructure and a steadfast commitment to high animal welfare standards.

Sustainable efforts and key milestones

The Howells family continues to evolve their sustainability journey, recently participating in an assessment funded by Lloyds Banking Group through the Soil Association Exchange. This comprehensive evaluation examined six critical areas: soil, biodiversity, animal welfare, water, carbon, and social impact. The resulting analysis provided the family with tailored insights to identify areas for further improvement.

“As part of our contract with our milk processor, we’ve taken part in sustainability audits for the past five years, so we’re pretty well versed in this area,” Roger explained.

“However, we saw this as an opportunity to build a full picture of the farm and thought it might support us in looking more closely at our soil health. The assessment considered soil pH, phosphate and potash levels, as well as copper and magnesium, which we hadn’t analyzed before,” he added.

Tailored action plan for improvement

The audit process provided Blaengelli Farm with a bespoke action plan, highlighting areas where environmental and operational efficiencies could be achieved. Farms undergoing this process are also signposted to funding opportunities to implement recommended improvements.

The Howells family scored particularly high in animal welfare, reflecting their focus on herd management and disease prevention.

However, their sustainability efforts have faced challenges. A recent TB outbreak forced the family to double their youngstock numbers to replace lost animals, increasing their replacement rate from 25% to 50%. Consequently, methane emissions rose, leading to an increase in their CO2e footprint to 1.27kg CO2e per kilogram of FPCM.

Tackling challenges with innovation

Despite setbacks, the Howells remain committed to progress. Measures to address their farm’s environmental impact include:

Introducing clover to reduce nitrogen inputs.
Applying farmyard manure to fields with low phosphate levels.
Planting deeper-rooting grasses and legumes to boost soil organic matter and carbon capture.
Adjusting soil pH to improve fertilizer efficiency.

“We’ve already started applying farmyard manure to low-phosphate and potash fields and plan to apply lime to fields that weren’t at the optimum pH at the time of testing,” said Roger.

A wider initiative for sustainable agriculture

The achievements at Blaengelli Farm are part of a broader effort by Lloyds Banking Group to support farmers transitioning to sustainable practices. By funding over 80% of farms participating in the Soil Association Exchange assessment, the bank is helping establish a robust environmental baseline for UK agriculture.

Lee Reeves, UK Head of Agriculture at Lloyds Bank, highlighted the importance of this partnership:
“The partnership between Lloyds Banking Group and the Soil Association Exchange is the most ambitious of its kind, focusing on building a holistic view of farming’s environmental impact.

“By providing farmers with the tools and finance they need, we’re helping the sector to adapt during a great time of change.”

This pioneering approach positions Blaengelli Farm and others like it at the forefront of the transition to sustainable agriculture in Wales and beyond.