Monthly farming update

1 The Labour Party has called upon Defra and the Department for Health to reduce the use of antibiotics in livestock, critically important to human medicine, by 80 per cent by 2020 and 95 per cent by 2025, including the banning of fluoroquinolones in poultry.

1 The Rural Payments Agency has agreed to make interim payments equivalent to about 50 per cent of the Basic Payments due to farmers who have not received their full entitlement at the end of April.

2 In advance of the new CAP Greening requirements, Defra has released an assessment of Ecological Focus Areas in 2014/15. This reveals that 20 per cent of arable farms, or 2 per cent of the arable area, would have been exempt from the EFA requirements. Of the total, 62 per cent of farms, or 77 per cent of the arable area, would not have needed to implement any changes to meet EFA requirements as sufficient areas of qualifying features were already present.

3 Defra has published an updated form authorising an agent to submit a Countryside Stewardship application or to manage an agreement on behalf of the applicant.

1 UK scientists have discovered the country’s first ash tree showing tolerance to ash dieback.

2 The number of LEAF (Linking Environment and Farming) Marque-certified farms has increased to 992 covering 342,556 hectares in 37 countries, an increase of 28 per cent over the past year. In the UK 33 per cent of fruit and vegetables is produced by LEAF - certified businesses, an 8 per cent increase; leeks 88.6 per cent, beetroot 76.3 per cent, spring onions 75.5 per cent, watercress 73.8 per cent and lettuce 70 per cent are grown by LEAF Marque-certified businesses.

3 Defra has reported 900,000 incidents of fly-tipping in 2014 costing £50 millions in clean up costs. In the same period local authorities conducted 515,000 enforcement actions at a cost of £17.6 millions.

4 A new Centre for Crop Health and Production is to be based at the National Agri-Food Innovation Campus at Sand Hutton, York following investment of £21.8 millions by the Government.

3           Total factor productivity of the agriculture industry in the UK is estimated to have fallen by 0.4 per cent in 2015 but compared to 2010 productivity has increased by 5.3 per cent.  The volume of all outputs rose by 0.3 per cent with the volume of livestock outputs increasing by 2.4 per cent but crop outputs falling by 3.2 per cent.  The volume of all inputs rose by 0.7 per cent.

4           The Agricultural Price Index, which measures changes in the prices of inputs and outputs, was down 5.6 per cent for outputs in February compared to a year earlier while inputs fell 4.9 per cent.

5           Surveys conducted by Knight Frank and Strutt & Parker reveal falls in average land values but increased volatility.  In the first quarter of 2016 average land values fell by 3 per cent with falls of 8 per cent in the South West, 15 per cent in the East Midlands, 14 per cent in the West Midlands and 2 per cent in the North.  However, average values rose by 1 per cent in the South East and by 3 per cent in the East of England.

6           A survey conducted by the NFU of 289 horticulture members employing 14,000 seasonal workers has revealed that 29 per cent experienced problems sourcing workers last year; 66 per cent expect reductions in labour availability by 2018; 43 per cent expect to suffer labour shortages; and 53 per cent expect an increase in labour costs this year rising to 84 per cent in 2018.

A. Crops

1 Crop price movements in April were broadly positive in comparison to late March but in most cases were better earlier in the month and ended on a downward note. As one might expect, there have been various interacting factors: dry weather has restricted the potential yield for the Brazilian maize crop; unseasonal (and heavy) rains have hampered the Argentine soyabean harvest and restricted maize crop development; whilst favourable weather in the EU and Russia led to increased yield predictions. The Sterling/Euro exchange rate performed a u-turn this month: early on in the month Sterling hit its weakest position since May 2014 (81p / Euro) before fighting back and regaining 3p. The Brexit referendum will ensure exchange rates remain volatile for some time to come. The oilseeds market, having been buoyant also, turned with the Euro exchange rate and lost much of the improvement made earlier in the month. The fact that LIFFE feed wheat futures closed at the same levels as late March for the various periods belies the true volatility of the month; the swing seen in April was between £3 and £5 across the board. In late April, deliveries for November 2016 and 2017 stood at £118/tonne (static) and £127/tonne (static) respectively, whilst January and March 2018 movements are within 50p of each other at £128 (static).

Average spot prices in late April (£/tonne ex-farm): feed wheat 102 (+2); milling wheat 116 (+9); feed barley 100 (+3); oilseed rape 271 (+7); feed peas 119 (+2); feed beans 127 (+2)

2 The GB average potato price, having improved month on month since October 2015, continued the same trend in April, albeit with slightly less vigour. From an opening position of £185 per tonne, the average price improved early on, had a small ‘wobble’ mid-month before regaining composure and reaching a late April close of £202 per tonne (£17 higher than March and £71 above the average in late April 2015). The free-buy average was far more positive in its movement, carving out a decent gap between itself and the average. Having opened the month at £186, the largest gains were in the early weeks leading to a close of £220 (£34 above March and £125 above the free-buy average a year earlier). Most movements remain via contract, with low levels of free-buy but demand is increasing, particularly for white varieties.

Planting of the 2016 main crop is well under way but in many places has been delayed by the unseasonably cold and inclement weather, which has also retarded the growth of sown crops.

2015 crop prices for grade 1 in late April: the Desiree spread was wider and higher at the top end at between £260 and £325 per tonne; whilst Estima had tightened in spread to between £250 and £350 per tonne. Maris Piper prices were unaltered at between £200 and £250 per tonne, whilst King Edwards were also stronger at the top end at between £210 and £300 per tonne.

B. Livestock

1 Cattle prices continued to fluctuate but with a generally negative trend. The average finished steer price, from its opening position of 170p/kg lw, peaked at 171p/kg but fell back in late April to close at 167 p/kg lw (down 3p/kg over the month and 13/kg below the closing average recorded a year earlier). The movement in the average finished heifer price was more pronounced. From the opening position of 188p/kg lw it dropped back over the course of the month to close at 180p/kg lw (8p/kg down overall during the month, to sit 11p/kg below the price a year earlier). The average dairy cow price remained suppressed, reflecting the state of the dairy industry, but did finally make a foray above £1,000 per head. With a low point of £808, the late April closing position was £1026 per head (£1,145 in April 2015).

2 The average finished lamb price (SQQ live weight) started the month with a flourish, gaining 9p/kg in the first week, but from then on was disappointing. From an opening position of 186p/kg lw, the average price peaked at 195p/kg lw, before dropping to a closing position of 174p/kg lw, down 12p over the course of the month to sit 2p/kg below the closing average a year earlier.

3 The average UK all pig price (APP) continued to show signs of an improving trend but took some detours on the way. From an opening position of 116.2p/kg dw the average dropped to 116.0p/kg, then improved to a late April close 0.6p/kg up overall at 116.8p/kg (19.1p/kg below DAPP from a year earlier).

4 The UK average milk price for February (published in April) reported a further reduction of 0.20ppl in the month to an average of 22.93ppl, sitting 2.14ppl below the price a year earlier. The UK gained two places in the EU farmgate milk price ‘EU28’ rankings in February (to 7th) in the context of an improved EU28 weighted average of 23.41ppl.

1 Initial estimates indicate that output of cereals fell by 15 per cent in 2015 to £2,947 millions with wheat down 18 per cent, barley 9 per cent and oats 13 per cent. Output of industrial crops fell by 10 per cent to £1,048 millions with oilseed rape up 2 per cent and protein crops up 11 per cent but sugar beet fell by 45 per cent. Output of vegetables rose by 4 per cent and fruit by 11 per cent but output of potatoes fell by 19 per cent.

2 The Agricultural Price Index for all crop products rose by 0.7 per cent in February but was 3 per cent lower than a year earlier. The Cereal index improved by 0.7 per cent but was still 14 per cent lower than a year earlier while the potato index rose by 1.6 per cent in the month and 30 per cent over the year.

3 Rural Business Research has analysed data covering 10 years and identified north east Northumberland, east Kent and north east Hampshire as having the best performing winter wheat gross margins. While east Kent, south Cambridgeshire and south Wiltshire had average yields 1.4t/ha greater than the national average, north east Northumberland had below average yields but still the highest gross margin.

4 The milling, starch and bioethanol industries used 501,000 tonnes of wheat in February, 1.8 per cent less than a year earlier. Of the total, 431,000 tonnes was home produced. Brewers, maltsters and distillers used 141,000 tonnes of barley and 43,000 tonnes of wheat, down 0.4 per cent and 30 per cent respectively.

5 Rural Business Research has reported that, for the 2014 harvests, while seed costs fell by 8 per cent/ha and fertilizer by 6 per cent/ha, spray costs increased by 13 per cent/ha (mainly on fungicides). The highest net margin was achieved by winter oats while the worst performing cereal was spring wheat.

6 The Wheat Research Centre has been opened at the University of Nottingham’s School of Biosciences.

7 An AHDB Cereals and Oilseeds report has indicated that triticale can produce a margin £27/ha better than second wheat.

8 The NFU has applied for a derogation to allow neonicotinoid seed treatments to be used on oilseed rape this autumn.

9 Rothamsted Research has been granted permission to conduct field trials of genetically modified camelina sativa plants to determine if the plants are able to make significant quantities of omega-3 long-chain polyunsaturated fatty acids and astaxanthin.

10 Tilbury Docks is to increase its grain storage capacity by 16,000 tonnes.

11 QV Foods, the specialist potato and vegetable grower and packer, is considering closing its site in March and consolidating its activities at Holbeach.

12 C&C, makers of Gaymers and Magners cider, is to close its cider mill in Shepton Mallet.

13 A study by City University has revealed that UK production of lettuce has halved in the past 25 years, while tomato and mushroom production has fallen by 25 per cent almost entirely due to competition from imports.

1 Initial estimates indicate that output of livestock in 2015 fell by 5 per cent to £8,573 millions. Output of cattle rose by 5 per cent but pigs fell by 15 per cent, sheep by 2 per cent and poultry by 1 per cent. Output of milk fell by 20 per cent.

2 The Agricultural Price Index for animals and animal products fell by 7.3 per cent in the year to February. The pig index fell by 16 per cent while the animal products index fell by 5.3 per cent but the sheep index rose by 7.5 per cent during the month although still 9 per cent down on a year earlier. The index for animal feedstuffs was 15 per cent lower compared to a year earlier.

3 Comparing March figures with those of a year earlier, UK prime cattle slaughterings fell by 4 per cent to 163,000. Beef and veal production fell by 3.2 per cent to 74,000 tonnes. Clean sheep slaughterings fell by 4.6 per cent to 990,000 while mutton and lamb production fell 6.6 per cent to 23,000 tonnes. Clean pig slaughterings rose 2.4 per cent to 920,000 while pigmeat production fell 0.2 per cent to 77,000 tonnes.

4 A new system for animal movements is to be introduced in July and phased in over a 12 month period. Farmers will be allowed to move their animals around any land they have registered and in use within a 10-mile radius without the need for reporting or standstills.

5 The number of new herd bovine TB incidents in the year to January rose in England by 6 per cent with rises of 5 per cent in the High risk area, 1 per cent in the Edge area and 37 per cent in the Low risk area. There were falls of 7 per cent and 8 per cent in Scotland and Wales respectively. The number of herds not officially TB free in England rose by 6 per cent with increases of 5 per cent in the High risk area, 17 per cent in the Edge area and 36 per cent in the Low risk area. There were falls of 11 per cent and 7 per cent in Scotland and Wales respectively. The number of animals slaughtered as a result of bovine TB rose by 6 per cent in England and by 8 per cent in the High risk area but fell by 10 per cent and 5 per cent in the Edge and Low risk areas respectively. In Scotland the number fell by 42 per cent but there was a rise of 29 per cent in Wales.

6 Defra has decided to retain the statutory animal welfare codes following complaints from pressure groups. It had been expected to agree to the introduction of non-statutory animal welfare codes.

7 Norway has reported the first known case in Europe of Chronic Wasting Disease, found in a dead wild reindeer.

8 Milk production in March was up 9.6 per cent on February at 1,261 million litres but down 0.1 per cent on a year earlier. Butterfat rose from 4.18 per cent to 4.2 per cent, well above the 3-year average of 402 per cent, while the protein level was about average at 3.29 per cent.

9 Arla Foods amba has reduced its standard litre price by 0.75ppl to 20.12 ppl while the price paid to Arla Direct producers has been reduced by 0.9ppl to 15.1ppl.

10 During February milk used by dairies fell by 1.9 per cent compared to a year earlier to 830 million litres. Of the total 50 per cent was used for liquid milk, 24 per cent for cheese and 5 per cent for butter and cream.

11 Dairy Crest’s new Davidstow milk balancing contract has confirmed a price of 22.72ppl until June. For supplies in excess of contract a lower price is paid. The standard contract price is 21.92ppl.

12 Muller Milk and Ingredients has decided to keep the Dairy Crest facility at Hanworth open and to expand the doorstep delivery service which currently supplies 600,000 homes.

13 Muller Milk and Ingredients is reported to be planning to close its processing facility at Tullos, Aberdeen and will levy a 1.75ppl transport charge on those producers who continue to supply.

14 Defra has published a revised list of approved sheep and goat ear tag suppliers.

15 In February animal feed production rose 1 per cent for poultry and 3 per cent for pigs but fell 6 per cent for cattle and 4.9 per cent for sheep, all compared to a year earlier. The usage of barley rose 13.4 per cent but the usage of wheat fell 1.1 per cent.

16 New on-farm welfare assessments for pigs are to be implemented by the RSPCA under its Assured scheme. New assessments have also been developed for dairy cattle and hens and are planned for broilers, sheep and beef cattle.

17 Carmarthen ham has applied for Protected Geographical Indication status.

18 Comparing March to a year earlier, UK commercial layer chick placings fell 11 per cent to 2.9 million chicks; broiler chick placings rose 3.3 per cent to 76.8 million chicks; turkey chick placings fell 3.9 per cent to 900,000 chicks; turkey slaughterings fell by 4.6 per cent to 800,000 birds; broiler slaughterings rose 1.2 per cent to 72.1 million birds; and poultry meat production fell 1 per cent to 125,200 tonnes.

1 Initial estimates indicate that the total cost of inputs fell by 4 per cent in 2015. The overall cost of seeds fell by 8 per cent, fertilizer by 8 per cent, sprays by 4 per cent, machinery fuels by 20 per cent and heating fuels by 3 per cent. Feed costs fell by 4 per cent but the cost of veterinary products remained at 2014 levels.

2 The European Parliament has voted to renew glyphosate’s authorisation for a period of 7 years but to restrict its application to professional uses and to ban its use close to public areas.

3 The Agricultural Price Index for fertilizers was 18 per cent lower in February than a year earlier.

4 Field experiments conducted by Digestate and Compost in Agriculture have confirmed that food-based digestate, a product of anaerobic digestion, is a valuable source of readily-available nitrogen.

5 Defra figures show the nitrogen application rate overall decreased by 1kg/ha between 2014 and 2015 with a 4kg/ha reduction to grass but no change to tillage crops. Application rates of phosphate, potash and sulphur remained relatively unchanged.

6 Researchers from James Hutton Institute, Rothamsted Research and the University of Lancaster, which together make up the Organic Phosphorus Utilization in Soils group, is investigating the combination of plants with the ability to release organic acids and enzymes from roots to unlock phosphorus bound to minerals and organic matter.

7 Research conducted by the University of Dundee has suggested that clothianidin does not demonstrate the same detrimental effects on bee colonies as other neonicotinoids.

8 ADAS has reported barley yellow dwarf virus in winter barley and winter wheat whether or not a seed treatment was used.

9 Research undertaken by the University of Bristol, the Food & Environment Research Agency and the University of Western Australia has indicated that the leaves of virus infected plants reflect light differently and are more attractive to aphids.

10 Scientists at Aarhus University in Denmark are using forest ants to determine if they will feed on caterpillars of the winter moth which affects organic orchards.

1 Defra has agreed a trade deal with the US expected to be worth £60 millions for the export of beef following the lifting of restrictions. Lamb restrictions are expected to be lifted next year.

2 Figures from the Soil Association Food for Life Catering Mark reveal that spending by the catering industry on Red Tractor-assured products increased by £17 millions to £40 millions in 2015.

3 UK cheese exports to EU countries totalled £330 millions in 2015, up by 8 per cent since 2010.

4 In the course of 2015, exports of beer to the US rose by 35 per cent, gin by 9 per cent and English sparkling wine by 23 per cent.

5 Lidl is to source only British milk for its sales of British butter.

6 Cranswick has acquired CCL Holdings (Crown) and its subsidiary Crown Chicken.

1 The Agricultural Engineers Association has reported a 9.5 per cent fall in tractor sales in the first 3 months of 2016 compared to the same period last year. The average power has increased 1.1 per cent to 158.3hp.

2 The National Skills Academy for Food and Drink is to coordinate the development of new degree apprenticeships focusing on Food Engineering, Food Science and Dairy Technology.

3 Nutritional company Alltech has taken Irish firm Keenan out of administration.

Once upon a time there was a King who wanted to go fishing.

He called the royal weather forecaster and inquired as to the weather forecast for the next few hours. The weatherman assured him that there was no chance of rain during the coming days.

So the King went fishing with the Queen. On the way he met a farmer on his donkey. Upon seeing the King, the farmer said, “Your Majesty, you should return to the palace at once because in just a short time I expect a huge amount of rain to fall in this area”.

The King was polite and considerate, he replied: “I hold the palace meteorologist in high regard. He is an extensively educated and experienced professional. And besides, I pay him very high wages. He gave me a very different forecast. I trust him and I will continue on my way”, which he did.

However, a short time later a torrential rain fell from the sky. The King and Queen were totally soaked and their entourage chuckled upon seeing them in such a shameful condition.

Furious, the King returned to the palace and gave the order to fire the professional. Then he summoned the farmer and offered him the prestigious and high paying role of royal forecaster.

The farmer said, “Your Majesty, I do not know anything about forecasting. I obtain my information from my donkey. If I see my donkey’s ears drooping, it means with certainty that it will rain”.

So the King hired the donkey.

Thus began the practice of hiring dumb asses to work in the government and occupy its highest and most influential positions.

And the practice remains unbroken to this day.