Monthly farming update

1 The Environmental Audit Committee has criticised Defra for “a lack of long-term strategic planning” in relation to recent flooding and also for delays in the distribution of the Farming Recovery Fund.

1 The European Commission has extended the penalty deadline for member states from 30 June to 15 October.

2 The Rural Payments Agency is set to concentrate on 13,000 Basic Payment claims where there is a conflict between the claim and the information held by the RPA. All farmers affected should have been informed about the process.

1 Research by Cranfield University for the All-Party Parliamentary Group on Agro-Ecology suggests that the UK loses 2.2 million tonnes of topsoil each year, equivalent to £9 millions in lost food production.

2 Figures have revealed that only 1,700 acres of woodland was planted in England in 2015 compared to the objective set by the Government of 12,300 acres. Plantings in Scotland fell by 7,400 acres to 11,300 acres, in Northern Ireland plantings halved to 250 acres while in Wales there was no change at 250 acres.

3 The Crop Protection Association, the Voluntary Initiative, the British Beekeepers Association and the NFU have launched Bee Connected, a web-based notification system to enable farmers to notify beekeepers of looming insecticide applications.

4 The AHDB has awarded £1.2 millions to NIAB CUF, Rothamsted Research, the James Hutton Institute and Lancaster University to research soil and water management in crop rotation.

5 The Biotechnology and Biological Sciences Research Council has awarded £240,000 to a scientist at the University of Bath to develop a commercial vaccine against bovine TB.

1 The first estimate of 2015 Total Income from Farming has been published. TIFF in England is estimated to have fallen by 31 per cent to £2,779 millions; across the UK the fall is estimated to be 29 per cent. The fall in England was most pronounced in the North West where TIFF nearly halved while in the North East the fall was only 22 per cent. The overall contribution to the English economy was £6,666 millions with the largest contribution coming from the Eastern region at 18 per cent and the largest TIFF at 25 per cent. The total workforce employed in agriculture remained static at 1.07 per cent.

2 A report from the Welsh Government has forecast that, while the average income of Welsh farmers will fall by 17 per cent in 2015/16 to £24,500, the income of dairy farmers is expected to fall by 40 per cent to £42,000.

3 The price index for all outputs in April fell by 5 per cent compared to a year earlier while inputs fell by 4.8 per cent.

4 In the first 5 months of the year, RABI has distributed 132 per cent more in financial support than in the same period in 2015 and has doubled the number of recipients.

A. Crops

1 Crop prices have generally strengthened this month, largely driven by the dive in the value of British currency. Sterling weakened against the Euro in the early part of the month (dropping to 79.5p/€) but this was gained back in the lead up to the Brexit vote. The Brexit result saw a 7 per cent drop within hours followed by further weakening; by the end of June Sterling was 83.2p/€ - a 9.5 per cent drop. The same pattern was seen between Sterling and the US Dollar, only slightly more pronounced (a 10.3 per cent drop). Underlying wheat price movements have been positive, as a result of the French downgrading their 2016 crop expectations and concerns over dry weather in the western states of the US, whilst, countering that, the Argentine soya harvest has been less affected than originally thought by last month’s poor weather. Milling wheat premiums have some further potential due to early concerns over the milling quality of the 2016 harvest. Oilseed prices improved as a result of exchange rates, despite the improved expectation of Argentine soya. LIFFE feed wheat futures fluctuated wildly in the final lead-up to, and aftermath of, the Brexit vote. The difference between prices at the end of June and those a month earlier don’t show the full picture: the swing was approximately £8 across the board in a ‘peak-trough-peak-trough’ pattern – a level of volatility not seen for many years. In late June, deliveries for November 2016 and 2017 stood at £120/tonne (+4) and £128/tonne (+2) respectively, whilst March 2018 movements were also up at £131 (+2).

Average spot prices in late June (£/tonne ex-farm): feed wheat 109 (+5); milling wheat 127 (+7); feed barley 96 (-2); oilseed rape 270 (+4); feed peas 124 (+5); feed beans 133 (+6).

2 The GB average potato price continued to improve for most of the month, before falling back in the latter stages. From an opening position of £225 per tonne, the average price made healthy gains to peak at £268 per tonne, before dropping to a June close of £241 per tonne (£16 higher than May and £76 above the average in late June 2015). The free-buy average followed a similar trend whilst further widening the gap between itself and the GB average. Having opened the month at £253, the free-by average peaked just below £299 per tonne before dropping back to a close of £277 (£24 above May and £135 above the free-buy average a year earlier). Movement has continued to shift towards the free-buy market as the end of the 2015 season approaches. Development of the 2016 main crop is good but slightly delayed. Many areas are starting to hope for drier, sunnier weather to bulk maincrop tubers and in some cases just to allow sprayers onto the land to combat blight.

2015 crop prices for grade 1 in late June: Desiree had tightened in spread, slightly lower at the top end, to between £280 and £340 per tonne; Estima were marginally improved, at between £280 and £450 per tonne, with top-end pricing reflecting best baker content. Maris Piper prices were weaker, at between £210 and £270 per tonne, whilst King Edwards were marginally tighter at between £230 and £290 per tonne.

B. Livestock

1 Cattle price movements were positive overall, but not by any notable margin. The average finished steer price, from its opening position of 175p/kg lw, peaked at 178p/kg before closing July at 177p/kg lw (a gain of 2p/kg in the month, to sit 13p/kg below the closing average a year earlier). The movement in the average finished heifer price was slightly more volatile; from the opening position of 187p/kg lw, it dropped to 184p/kg before gaining then on, to eventually close at 194p/kg lw (7p/kg up for the month to sit 2p/kg below the price a year earlier).

The average dairy cow price showed some positive movement, peaking at £1,101 but dropped back to a late June closing position of £991 per head (£1,308 in late June 2015).

2 The average finished lamb price (SQQ live weight) was inherently volatile this month; from an opening position of 200p/kg lw, it peaked at 202p/kg before dropping back to 184p/kg mid-month, followed by a recovery that led to a late June average of 195p/kg lw, (5p below late May 2016 but 38p above the closing average a year earlier).

3 The average UK all pig price (APP) made some healthy gains this month, over and above what would be expected at this point in the season. From an opening position of 119.1p/kg dw, a decline in UK slaughtering saw the supply reduced and the average price improve to a late June close of 125p/kg (4.9p/kg up in the month and 12p/kg below DAPP from a year earlier).

4 The UK average milk price for April (published in May) reported last month remains the most up to date data: an average of 21.59ppl, 3.04ppl below the price a year earlier; the lowest monthly average since August 2007. The UK dropped a further four places in the EU farmgate milk price ‘EU28’ rankings in April (to 15th) in comparison to a lower EU28 weighted average of 22.27ppl (down 0.32ppl).

1 Total crop output in 2015 fell by £718 millions to £7,393 millions; wheat output fell by £422 millions to £1,888 millions; barley fell by £41 millions to £605 millions; oilseed rape rose by 3.3 per cent to £663 millions; peas and beans rose by 11 per cent to £137 millions; sugar beet fell by £142 millions to £173 millions; and potatoes output fell by 25 per cent to £350 millions.

2 The price index for all crop products rose in April by 0.4 per cent compared to a year earlier and by 3 per cent compared to March; the cereals index fell by 2.4 per cent from March and by 15 per cent compared to a year earlier; and the potato index was up by 54 per cent on 2015 and by 16 per cent on March.

3 The French Ministry of Agriculture has cut its forecast of winter barley production for this year by 6 per cent to 9.5 million tonnes and oilseed rape by 3.7per cent to 5.1 million tonnes as a consequence of adverse weather.

4 The International Grain Council has forecast a rise in world cereal stocks to 474 million tonnes.

5 The 2017 Institute of Brewing and Distilling has approved RGT Planet for brewing.

6 Branston has committed £5 millions to expansion of its factory which processes potatoes.

7 Figures released by English Apples & Pears indicate that Gala sales are expected to exceed 50,000 tonnes by the time the season finishes. Cox volumes have risen by 1,500 tonnes to 19,600 tonnes and Braeburn by 2,200 tonnes to 23,300 tonnes but Bramley volumes have fallen by 2,700 tonnes to 12,400 tonnes.

8 Adrian Scripps of Kent has produced a new apple, Red Prince, which is designed to be stored into the spring and which matures in flavour during the storage period.

9 Latest estimates indicate that UK strawberry production will total 74,000 tonnes with a value of £564 millions.

1 Total livestock output fell by 9.3 per cent in 2015 to £8,585 millions; milk output fell by 20 per cent to £2,361 millions; cattle increased by £128 millions to £1,309 millions; and pig meat fell by £157 millions to £874 millions.

2 In the year to March new herd bovine TB incidents rose by 4 per cent with increases of 2 per cent in the High risk area, 13 per cent in the Edge area and 25 per cent in the Low risk area; in Scotland the incidents increased by 10 per cent but in Wales there was a fall of 14 per cent. The number of herds not TB free rose by 4 per cent in England with increases of 3 per cent in the High risk area, 14 per cent in the Edge area and 20 per cent in the Low risk area while there was a fall of 8 per cent in Wales. The number of animals slaughtered rose by 8 per cent in England with increases of 11 per cent in the High risk area and 4 per cent in the Low risk area but a fall of 8 per cent in the Edge area. In Scotland there was a fall of 43 per cent in the number of animals slaughtered but a rise of 39 per cent in Wales.

3 Scientists at the University of Nottingham have developed a blood test which proves that cattle diagnosed with bovine TB have detectable levels of the bacterium M. bovis in their blood.

4 A Natural England survey has indicated that two-thirds of respondents believe an extension of the badger cull would be bad for business and unsafe for the general public.

5 In the period July 2015 to April 2016, animal feed production increased by 3.3 per cent for pigs and 3 per cent for poultry while that for sheep fell by 1.6 per cent and cattle by 4.4 per cent compared to the previous crop year. Wheat usage rose by 1.1 per cent and barley usage by 4.5 per cent.

6 In May, UK prime cattle slaughterings rose by 0.5 per cent, compared to a year earlier, to 159,000; beef and veal production rose by 2.8 per cent to 72,000 tonnes; sheep slaughterings fell by 4.5 per cent to 880,000; mutton and lamb production fell by 3.7 per cent to 21,000 tonnes; pig slaughterings fell by 1 per cent to 863,000; and pigmeat production fell by 0.8 per cent to 73,000 tonnes.

7 The price index for all animal products in April was down 12 per cent on 2015 and down 2.9 per cent on March; the pig price index was 14 per cent lower than 2015 but rose by 0.9 per cent from March; and the milk price index was down 12 per cent on 2015 and by 3.4 per cent on March. The index for animal feedstuffs was 13 per cent lower than a year earlier.

8 The Norwegian Veterinary Institute has reported a further case of cervid spongiform encephalopathy in wild elk.

9 UK milk production for May increased by 4.9 per cent, compared to April, to 1,313 million litres but this was a 4.8 decrease on May 2015. The protein content increased by 0.01 per cent to 3.28 per cent while butterfat content fell by 0.17 per cent to 3.99 per cent.

10 Dairy Crest has reduced the Davidstow core price to 20.72ppl.

11 During April, dairies used 875 million litres of milk, 5.3 per cent down on a year earlier. Of the total, 50 per cent was used for liquid milk production, 26 per cent for cheese production, 2.2 per cent for butter and 2.4 per cent for cream.

12 Arla Foods has reduced its amba on-account price by 0.07ppl to 19.05ppl.

13 The number of dairy farms in Wales fell by 40 in the past year, and by 1,366 in the past 10 years, to 3,054.

14 Meadow Foods has increased its A price by 1ppl.

15 A further 13 outbreaks of bluetongue virus have been reported in France taking the total to 285, all the new cases in cattle. There has been no increase in spread towards the north coast.

16 A survey conducted by Elanco Animal Health has revealed that 65 per cent of sheep farmers believe the blowfly season has lengthened compared to the past.

17 Animal Health has entered into an agreement with a Spanish-based veterinary specialist to distribute Bluevac BTV8 to counter the bluetongue virus.

18 Poland has reported an outbreak of African Swine Fever on a commercial pig farm. Lithuania has also reported an outbreak in a non-commercial unit.

19 During May, commercial layer chick placings rose by 13.8 per cent, compared to a year earlier, to 2.9 million chicks; broiler chick placings rose by 1.2 per cent to 76.2 million chicks; turkey chick placings fell by 4.1 per cent to 1 million chicks; turkey slaughterings rose by 7.3 per cent to 1.2 million birds; broiler slaughterings rose by 1.1 per cent to 72.5 million birds; and total poultry meat production rose 1.6 per cent to 131,400 tonnes.

20 An outbreak of H7N9 avian influenza has been reported in laying hens in the Friesland region of the Netherlands.

21 Russia has reported an outbreak of H5 HPA1 avian influenza in several species of wild bird on the border with Mongolia.

22 Defra has updated the licence conditions for the movement of pigs, cattle, deer, sheep and goats.

1 The European Commission has authorised the use of glyphosate until December 2017.

2 The value of intermediate consumption in 2015 fell by £418 millions to £11,047 millions as a result of lower energy, animal feed and fertilizer costs; energy costs fell by £150 millions to £857 millions; animal feed costs fell by 2.5 per cent to £3,205 millions; and fertilizer costs fell by 7.6 per cent to £1,005 millions.

3 The fertilizer price index was 21 per cent lower in April compared to a year earlier.

4 Bayer has introduced Hamlet, a post-emergence black-grass herbicide and Ascra Xpro, a wheat fungicide containing bixafen and fluophram.

5 Scientists at the University of Southern Denmark, Aarhus University and technology firm Ecobotix are developing an “eco-drone” which will disperse natural insect predators.

6 Syngenta has introduced Solatenol, a fungicide active against septoria and rusts.

7 The Chemicals Regulation Directorate has extended authorisation for the use of Morento to control aphids on carrot, parsnip, swede and turnip.

8 Dow Agrosciences has launched Pixxaro EC, a broad-leaved weed herbicide containing halauxifen-methyl.

1 An English Marketing survey has revealed a fall in recognition of the Leaf logo from 38 per cent in 2014 to 15 per cent in 2016 while the Red Tractor logo recognition fell by 8 per cent in the same period to 70 per cent. Recognition of the Soil Association logo only fell by 1 per cent to 36 per cent.

2 Quality Meat Scotland has reported that exports of Scottish red meat rose by 4 per cent in 2015 with 35 per cent of beef and 80 per cent of lamb heading to France.

3 Figures from Kantar Worldpanel for the 12 weeks to 22 May report value growth in the grocery market of 0.1 per cent.

4 A YouGov survey on behalf of the Groceries Code Adjudicator has revealed that Tesco is the most improved retailer in terms of code compliance with 65 per cent of its suppliers reporting an improvement and 5 per cent recording a worsening.

5 Lidl has committed to the NFU Fruit and Vegetable Pledge.

6 Waitrose has begun marketing a chicken fed on aquatic plants, including kelp and seaweed, making it rich in omega-3 poly unsaturated fatty acids.

7 Clynderwen and Cardiganshire Farmers, the largest agricultural co-operative in Wales, has bought DJ Edwards Agri Merchants.

8 Provenance Partners has purchased Planet Produce.

1 A OnePoll survey for the NFU has revealed that 69 per cent of the general public have a favourable view of British farmers, up 9 per cent since 2012. 92 per cent consider farming important to the economy and 91 per cent consider it important to have a productive farming industry. 77 per cent believe farmers have a beneficial effect on the countryside while 68 per cent consider farming subsidies should continue.

2 The Royal Association of British Dairy Farmers has announced that the Livestock Event will be renamed the National Dairy Event in 2017.

3 Farm Electronics, a crop storage engineering specialist, has merged with Dutch firm Tolsma-Grisnich.

Neologisms

1. Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period of time.

2. Intaxication: Euphoria at getting a tax refund, which lasts until you realise it was your money to start with.

3. Bozone (n.): The substance surrounding stupid people that stops bright ideas from penetrating. The bozone layer, unfortunately, shows little sign of breaking down in the near future.

4. Giraffiti: Vandalism spray-painted very, very high.

5. Sarchasm: The gulf between the author of sarcastic wit and the person who doesn’t get it.

6. Inoculatte: To take coffee intravenously when you are running late.

7. Osteopornosis: A degenerate disease.

8. Karmageddon: It’s like, when everybody is sending off all these really bad vibes, right? And then, like, the Earth explodes and it’s like, a serious bummer.

9. Decafalon (n): The gruelling event of getting through the day consuming only things that are good for you.

10. Glibido: All talk and no action.

11. Dopeler Effect: The tendency of stupid ideas to seem smarter when they come at you rapidly.

12. Arachnoleptic Fit (n.): The frantic dance performed just after you’ve accidentally walked through a spider web.

13. Beelzebug (n.): Satan in the form of a mosquito, that gets into your bedroom at three in the morning and cannot be cast out.

14. Caterpallor (n.): The colour you turn after finding half a worm in the fruit you’re eating.