Farming

FUW’s cautious welcome for Gove speech

Published

7 years ago

February 26, 2018

Michael Gove: Clarity sought following keynote speech

THE FARMERS’ Union of Wales (FUW) has welcomed commitments by Secretary of State Michael Gove to focus on supply chain policies and his acknowledgement of the need for an appropriate balance between devolution and common UK frameworks post Brexit.

Speaking at a National Farmers Union conference in Birmingham, Michael Gove gave a number of commitments to English farmers, while also acknowledging the need for Brexit to be considered in terms of entire supply chains which operate across the UK.

Michael Gove also said: “Leaving the EU requires us to develop new policies on food and farming. For the first time in almost half a century, we are free to design policies from first principles that put British farmers, and consumers, first.”

Responding, FUW President Glyn Roberts said: “In light of Brexit, there is an understandable focus on farming, environmental and land use policies, but the FUW has been arguing for entire supply chains to be considered – be it the supply chain for food, carbon, green energy or wildlife.

“Farmers are key links in lengthy supply chains which involve all sorts of industries and deliver a host of public benefits – not least the food which arrives daily on supermarket shelves. We need holistic Government policies which deliver benefits for consumers and fair rewards for farmers, and interventions where there is market failure.”

Mr Roberts said it was therefore welcome that the UK Government has accepted the need to consider entire supply chains, including those which extend across the UK and further afield.

“There has been welcome engagement by UK Governments with farming and environmental bodies over the past eighteen months, but there is concern that government engagement with others along supply chains needs to be stepped up,” he added.

Mr Roberts also welcomed the Secretary of State’s acknowledgement of the need for devolved powers over agriculture to remain firmly in the hands of Wales, Scotland and Northern Ireland – but for there to be a balance between such powers and frameworks which prevent distortions within the UK and wider markets.

“The FUW is an emphatic supporter of devolution, but all mature governments recognise the importance of agreeing frameworks with other nations and countries. The alternative is a free-for-all which distorts markets and leads to inequality between producers which damages relationships and compromises trade.”

Mr Roberts said agreement on such frameworks needed to be reached urgently given the thirteen or so months before the UK left the EU. He therefore welcomed Mr Gove’s assurance that UK Governments were “…working together to ensure there will be UK-wide frameworks on areas of common concern like animal and plant health and no decisions are taken that harm our own internal UK market.”

Responding to the UK Government’s plan to introduce a cap on English farm payments, Mr Roberts said that capping payments had been FUW policy since 2007, and that as a result Welsh payments had been capped under new regulations introduced in 2015.

“However, we have already written to DEFRA minister George Eustice to highlight our concerns that the benefits of capping would be lost if no limit is applied to agri-environmental payments, as large estates and charities would cream off money which would be better spent on family farms,” he added.

“The FUW has made it clear since June 2016 that Wales’ funding should continue at at least current levels, and clarity on this and other matters is essential. England seems to have had these assurances, yet Wales is still in the dark.”

Mr Roberts said the FUW welcomed Mr Gove’s assurance that devolved powers would not be diluted, and that UK Governments were working together on common frameworks, but highlighted the degree to which planning in Wales by both farmers and government was hampered by a lack of certainty.

“With the budget for the 2019 BPS due to be finalised in October this year, there is a real sense of urgency.”

Mr Roberts also highlighted the need for well-meaning policies to be carefully assessed rather than taken at face value.

“Well intentioned policies set out in lengthy sentences must be thoroughly investigated in terms of actual figures and their likely impacts on our farms, rural communities and supply chains,” he said.

Farming

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

Published

3 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

3 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

3 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.