FEWER than one in five family farms are making a profit from their farming activity, according to research undertaken by the Andersons Centre on behalf of The Prince’s Countryside Fund.
Analysis of data from 172 participants in the first year of The Prince’s Farm Resilience Programme has shown that the average farm made more than £20,000 loss from farming activities, and instead is reliant on other income streams to make a profit.
The shortfall was made up by income from non-farming activity, such as tourism enterprises, renewables, direct selling of products to the consumer, or income from working off farm as well as farm payments.
According to the report, broadly speaking, farmers face two business choices in order to cope with declining economic fortunes: either to focus on a farming solution or to redeploy resources away from agricultural production. In reality, it may be a combination of the two or farmers may vacillate between the two courses of action with periods of off-farm work generating income interspersed with a focus on the farm.
There are, of course, two further options open to farmers. First, they may cease farming, either entirely through selling up the farm or by letting their land. Or secondly, they might tighten the belt and continue business as usual.
Worryingly, many operators of small farms, believe the near future will see them retiring or otherwise leaving agriculture altogether.
Lord Curry of Kirkharle, chairman of The Prince’s Countryside Fund said: “Although the initial figure is startling, the research from the Andersons Centre shows that farmers are increasingly looking at their farms as a business, and are proactively looking for how they can generate an income from diversified sources to remain profitable.
“This is more crucial now than ever. Farmers must develop their skills and improve their business confidence to survive. If they do not, the risk of extinction for the family farm is very real; farmers must act now to both strengthen their core farming business and to spread the risk.
“The Prince’s Farm Resilience Programme is vital, because it equips farmers with the tools they need to remain financially stable. Maintaining diversity of farm size is essential to protect the British countryside and our rural communities.”
The Andersons Centre developed a bespoke and easy to use Business Health Check Tool for The Prince’s Farm Resilience Programme, allowing farmers on the programme to benchmark their performance, identify their strengths and weaknesses, and make informed business decisions as a result. Data from this tool was analysed to identify trends and performance in the farm businesses involved in the initiative.
The Prince’s Farm Resilience Programme aims to help 300 family farms, across 15 locations, each year. It brings together like minded family farm enterprises in local networks, to review their current activity and identify improvements and opportunities that can be made on-farm to build resilience, effectively helping farmers to take control of their businesses. Farmers who took part in the first year have confirmed they have higher levels of confidence in their business, better business management, and stronger communication within their family.
The Prince’s Farm Resilience Programme directly addresses some of the issues raised in a report commissioned by the Fund from the University of Exeter, ‘Is there a future for the small family farm in the UK?’
The report detailed how the loss of small family farms would have devastating effects for the British countryside, leading to loss of employment, breakdown of rural communities, and potential negative environmental consequences. The report concluded that it was essential to maintain a diverse range of farm sizes, but that this was in significant jeopardy.
Plan for ‘collaborative approach’ to tackling rural crime issues
THIS week (Mar 9) Police and Crime Commissioner Dafydd Llywelyn chaired a strategic meeting with key stakeholders to identify collaborative opportunities to tackle rural and wildlife crime in the Dyfed-Powys area.
Following a meeting with the Farming Unions in Wales earlier this year, Police and Crime Commissioner Dafydd Llywelyn is keen to establish a Strategic Partnership Working Group with key stakeholders that will aim to identify ways of working collaboratively to tackle some of the rural and wildlife crime issues in Dyfed-Powys.
Dyfed-Powys Police have recently appointed a Sergeant for the Rural Crime Team, and the Police and Crime Commissioner has been keen to consult with key stakeholders to gain an input from partners to support the development of a new Rural Crime Strategy for the Force.
Key Stakeholders that were invited to be part of the strategic group include both NFU Cymru and FUW unions, as well as local authorities, National Parks, RSPCA and many others.
Police and Crime Commissioner, Dafydd Llywelyn said: “I had positive discussions with representatives from both unions earlier this year to highlight some of the rural crime issues in the Dyfed-Powys area.
“One of the priorities identified was the need to take a collaborative approach to tackling rural and wildlife Crime, and the meeting with several key partners today was an opportunity to develop discussions and ideas further”.
Earlier in March, PCC Dafydd Llywelyn published a Rural Crime bulletin, which highlights some of the work that has taken place recently in the Dyfed-Powys area, and cross border collaborative initiatives.
PCC Dafydd Llywelyn noted that this multi agency partnership will aim to build on some of the great work that is already happening, and said; “This meeting today comes a year on from the successful St. David’s Day Conference focusing on Rural Crime that I held at Police Headquarters last year. The last 12 months have been like no other but sadly crime and incidents affecting the rural community have continued.
“Today’s multiagency Strategic meeting was an opportunity to present the new Sergeant for the specialist team, and to discuss a new website that we are developing in partnership with North Wales Police to provide key crime prevention messages to the agricultural industry – the Future Farms Cymru initiative.
“I’m grateful to all partners who attended the meeting today, and I now look forward to take all comments on board as we look to re-energise and refocus the work of the Dyfed Powys Rural Crime Team.”
NFU Cymru ‘responds robustly’ to WG
NFU CYMRU has said that many proposals within the Welsh Government and Defra’s Welfare in Transport consultation will cause significant disruption to livestock transportation in the UK.
In a robust response to the joint Welsh Government / Defra consultation, the union has stressed the significant impact the proposals would have on the livestock and poultry sectors, and raised concerns that if the proposals are implemented, they will fail to deliver any meaningful benefit to animals’ welfare.
Wyn Evans, NFU Cymru Livestock Board Chairman said: “In order to ensure the best possible welfare outcomes, the main priorities should be the animal’s fitness to travel, loading and unloading, driver training and experience, rather than the length of the journey or the external temperature at the time of transport.
“We firmly believe that the current regulations for domestic transport already deliver high welfare, as a result of the standards, cleanliness and adaptability to different weather conditions of transport boxes in the UK. But as an industry, we want to strive for even better. We believe that in order to do that there should be more focus on certified training and providing clearer, sector-specific guidance, particularly during loading and unloading rather than what is proposed in the consultation. Good welfare and healthy livestock go hand in hand; safe arrival at a destination, be that at market or abattoir, must be and is a priority.
“The transporting of livestock is an integral part of UK food production. The suggested changes to journeys based on duration and weather conditions would cause serious delays and disruption, potentially damaging welfare outcomes, while changes to vehicle requirements would add significant costs. It will also lead to many more journeys being made, increasing greenhouse gas emissions, which work against both farming’s and the government’s net-zero targets.
“Turning to the part of the consultation on live exports, we have inputted our views into a proposed NFU assurance scheme, which is detailed in an appendix in the response. This would be extremely effective in delivering welfare outcomes at the same time as maintaining this trade, as assessing the animals’ health and reporting back to producers is a fundamental part of the scheme.”
Richard Williams, Chairman of NFU Cymru’s Poultry Group said: “Looking at the month of January for example, over the last three years on average there were 10 days where temperatures were five degrees or less. If the proposals were implemented to stop transport at this temperature, no broilers could be collected off-farm in those days. If we had a prolonged cold snap; this would have a massive effect on the food chain.
“With any policy developments government makes, it is essential they are based on the latest evidence. We have an industry to be proud of, with world-leading standards, and that includes our current transportation requirements for all farmed livestock.”
Export push for Welsh Lamb
PGI Welsh Lamb will feature in export marketing events in Dubai and Qatar over the coming months, despite Coronavirus restrictions, with the industry aiming to continue a major growth in exports to the Middle East region.
Hybu Cig Cymru – Meat Promotion Wales (HCC) will have a presence at the upcoming Gulfood 2021 trade show during February 21-25 with support from the Welsh Government via the Enhanced Export Fund. The event, which takes place in Dubai, is the first global trade show to take place in nearly a year due to the Coronavirus pandemic. In-market representatives will promote PGI Welsh Lamb to buyers at the Covid-secure event.
The Middle East is an important and growing export market; newly published export data shows that the volume of UK sheepmeat exports increased by 18.3% on levels seen in 2019 and a hefty 368% compared to 2018. HCC helped to secure four new retailers as stockists of PGI Welsh Lamb in Qatar over the last year along with a high-end online retailer in the United Arab Emirates.
HCC’s Export Development Executive, Deanna Jones, explained ‘Welsh Lamb exports have grown rapidly in the Middle East over the last few years and the market now sells Welsh Lamb through wholesale, retail and foodservice.’
‘Whilst we will not be attending any events in person, it is important that Welsh Lamb has a presence at Gulfood 2021 and other trade events as we continue to build the customer base and profile of our products.’
Lesley Griffiths, the Minister for Environment, Energy and Rural Affairs, said: “I am very pleased we have been able to support Hybu Cig Cymru as they continue to promote Welsh produce internationally – particularly given the increasing export value of the Middle East to Welsh Lamb producers.
“While restrictions mean delegates will not be able to attend in person, it is vital that Wales continues to have a presence at trade events such as Gulfood 2021, and I am very pleased Wales will be at the table in Dubai.”
Popular This Week
News3 days ago
Elin Jones calls for a plan to revive Aberystwyth town centre
News2 weeks ago
Fire Chief’s pay being formally investigated
News3 days ago
Ceredigion dog breeder fined for failing to comply with dog breeding licence
News2 weeks ago
Drakeford outlines road to normality
Politics3 days ago
Covid-19 restriction relaxations in Wales brought forward
News1 week ago
Ben Lake MP condemns Nazi graffiti as police investigate
News3 days ago
Prince Philip, The Duke of Edinburgh, dies aged 99
News2 weeks ago
Ceredigion MS and MP call on Welsh Government to support agricultural shows