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Farming

Farm incomes fall for third straight year

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Agriculture must be fairly dealt with: Meurig Raymond

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.”

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Farming

Welsh Government must balance farming priorities

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IN EARLY July, the Welsh Government published its proposals for the Sustainable Farming Scheme.

Robert Dangerfield, Communications Manager for the Country Land Owners and Business Association Cymru, responds.

We are pleased to see the ambition shown within the document to support sustainable and profitable food production alongside addressing the climate and biodiversity emergencies.

The proposals arise after three consultations over five years and reflect the work our members and the CLA team have done with Welsh Government.

We are happy to see considerable detail on what the scheme will pay for, the process for how farmers and landowners can apply, and how the transition from the current landscape of the Basic Payment Scheme and Glastir to the Sustainable Farming Scheme will work.

We do, however, have some specific concerns.

Firstly, the requirements for 10% woodland/forestry cover and a 10% requirement for habitat creation and maintenance may not be suitable for all holdings. The need to balance sustainable food production must be considered further.

Secondly, there are no specific payment rates for the scheme. Welsh Government have explained that this is because the current funding settlement with the UK Government only goes to 2024, so they cannot commit to specific rates. This is disappointing, and we will continue to lobby to ensure future funding matches the commitments within the proposals.

WHAT HAS BEEN PROPOSED?

Despite the concerns highlighted above, there is a fair amount of detail within the document. To summarise, the scheme includes a farm sustainability review that will include farm details (size, sector, livestock), a carbon assessment and a baseline habitat survey.

The review will be digital, where possible, to reduce cost and concentrate resources on scheme delivery.

It will provide entry to the scheme and identify the actions Welsh Government will pay for. These will consist of a mixture of universal activities that all applicants must undertake – for which they will receive a baseline payment via a five-year contract and optional and collaborative actions which will attract additional payments.

The universal actions include:

·        Record of key performance indicators;

·        10% of land for woodland/forestry and 10% for habitat creation/maintenance;

·        Undertake animal health and welfare plan;

·        Undertake a biosecurity plan;

·        Manage areas of cultural/heritage significance;

·        Undertake a five-yearly soil analysis.

The optional and collaborative actions are very wide-ranging and will be able to be tailored for the plethora of different farm types across Wales. One particular area of importance for our membership is access.

The proposal outline that any options relating to access are optional and include:

·        upgrading footpaths to multi-use paths;

·        enhancing existing paths to make them more accessible;

·        establishing joined-up and new access routes and trails;

·        establishing new access;

·        hosting educational and care farm visits.

We will continue to work with the various access fora and the Welsh Government to ensure that any new access is voluntary, incentivised, and permissive.

INITIAL VIEWS

The Royal Welsh Agricultural Show took place a week after the publication of the proposals, providing an ideal opportunity for discussion with lots of different organisations and our members.

Not surprisingly, the “10 and 10 requirements” dominated many meetings and conversations I had.

Some farmers were not concerned as they had already reached these percentages on their holding but were worried about land held under Farm Business Tenancies that often did not include the woodland.

In the short term, there are no quick answers; but the CLA Cymru team will be part of a Welsh Government-organised tenancy working group to discuss the impact of the proposals on landowners and tenants.

Other members outlined their worries that they needed all the productive land they had to go towards feeding their stock or growing their crops. This is a real concern.

For some, the solution will be to sustainably intensify other parts of their farm and become more efficient.

Where this is not possible, the role of exemptions for some farms must be considered by Welsh Government.

AGRICULTURE (WALES) BILL

The Agriculture (Wales) Bill will be published this Autumn.

It will be the legislative mechanism by which Welsh Government can administer the new scheme.

Ministers are confident it will receive Royal Assent by summer 2023, ready to begin testing, trialling, and introducing the new scheme.

We will be working with Members of the Senedd to ensure scrutiny of the Bill and to propose amendments if we see fit.

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Farming

Welsh Cobs return to the farmyard at Llanerchaeron

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Welsh Cobs at Llanerchaeron

HORSES have returned to the traditional farmyard at Llanerchaeron near Aberaeron, which is cared for by National Trust Cymru. 

Tomos and Seren, two eighteen-year-old Welsh Cobs, have been living together for over a decade and recently moved into the Welsh farmyard. 

Visitors will be able to meet the horses when they visit, during certain times of the day at the stable blocks.

Please check opening times before visiting www.nationaltrust.org.uk/llanerchaeron.

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Farming

Ceredigion farmers left high and dry by lack of UK-NZ trade deal protections

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PLAID CYMRU politicians have expressed significant concerns regarding the impact the new trade deal stuck between the UK and New Zealand will have on Ceredigion farmers. 

The free trade agreement between New Zealand and the UK Government was signed on 28 February 2022 and is set to open the doors to a significant import of meat produce which could potentially hit the farming sector in Wales harder than in any other part of the UK. 

NFU Cymru has recently raised concerns about the deal, stating that the potential negative cumulative impact of this cannot be overstated. 

The New Zealand trade deal follows another similar deal with Australia, and while it offers significant upsides for farmers on the other side of the world, it potentially creates significant marketplace changes for Welsh farming. 

Figures from the Farmers Union of Wales state the agreement could see the amount of beef that can be imported tariff-free from New Zealand rise immediately to 12,000 then gradually to 38,820 tonnes in ten years’ time. Further rises would occur in the subsequent five years, after which there would be no limit. A similar increase would also be seen in lamb, with the amount that could be imported tariff-free would increase by 35,000 tonnes per annum in years one to four, then by 50,000 tonnes per annum in years five to fifteen, after which there would be no limit. 

Plaid Cymru’s Agriculture Spokesperson, Mabon ap Gwynfor MS, has today (2 March, 2022) raised the issue as a matter of urgency with the Welsh Government in the Senedd. 

Mabon ap Gwynfor MS said: “While the spin will be about benefits, the truth is that this trade deal is a real cause for concern for Welsh farmers. 

“The agreement will provide a 15 year transitional period, and it states that they will only be able to ‘utilise new access to the UK sheep meat market once they have filled 90% of their existing World Trade Organization (WTO) quota’. 

“However, this leaves Welsh farmers at the whim of a market whereby they have no control nor input. Should something change in the sheep meat market then New Zealand meat would suddenly end up here or in the EU and undermine Welsh farmers. 

“By failing to ensure that there are tariffs on imports here the UK Government have left Welsh farmers completely open to the whims of a market which they have no say and no protection. 

Cefin Campbell, Plaid Cymru Member of the Senedd for Mid & West Wales added: “Let us be clear, this trade deal is a gross betrayal of Ceredigion farmers. The UK Government’s own analysis suggests that the number of people working in agriculture will be negatively impacted by this deal, whilst it also threatens to undermine the entire Welsh agriculture sector – which we know is far more susceptible to harm from a poor trade deal than other farmers in other parts of the UK.  

As we face a climate emergency, importing more food from the other side of the world that could be produced sustainably here in Wales, does not make any sense whatsoever. 

Clearly, efforts must now be taken at Westminster to ensure that the Welsh farming sector is safeguarded from the potential negative impact of this agreement.”  

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