June Policy Update:
The Genetic Technology (Precision Breeding ) Bill has been introduced to Parliament. The bill is intended to remove unnecessary barriers to research into new gene editing technology. The Scottish and Welsh government's are opposed to the production and sale of genetically modified crops and products though.
Defra has announced that Direct Payments will be paid in two instalments each year for the remainder of the agricultural transition period, 50% at the end of July and 50% in December.
The results of the Feb 2022 Farm Practices Survey in relation to greenhouse gas mitigation have been published. Key findings include 54% of holdings have a nutrient management plan; 8.3% of farmers process waste by anaerobic digestion; 58% of farmers are taking action to reduce greenhouse gas emissions; 78% of holdings spread solid manure or slurry on grass or arable land; 72% of livestock farmers store solid manure in temporary heaps in fields; 73% of livestock farmers have a Farm Health Plan; 73% of livestock holdings sow some or all of their temporary grassland with a clover mix; and 67% of holdings with livestock use a ration formulation programme or nutritional advice.
Final estimates for 2021 for organic farming have been published. The UK organic land area is 507,000 hectares; 61 % of organic land is permanent pasture with the majority of the land in England.9% of the organic area is used to grow cereals whilst just over 3% of the UK beef cattle is reared organically. There are 5700 organic farmers in the UK.
Out of a total of 10,537 levy payers, 42 % voted in the AHDB Shaping the Future survey. Voter priorities included protecting the reputation of the beef, lamb, pork and dairy sectors and promoting benefits to consumers; supporting farmers to remain viable despite changes to farm support, profitability and productivity challenges in the cereals and oilseeds sectors and selling every part of the pig for the best financial return.
The average UK all milk price for Feb was 35.88 p/ litre and the forecast for March average is 36.79,The EU excluding the UK average for March was 37.45, 0.78 p/l up from the Feb average.
Researchers at the Royal Agricultural University are bringing together farming groups, scientists and businesses to determine whether cultured meat is a threat or an opportunity for UK farmers.
Defra has introduced a new and simplified licence for those wishing to vaccinate badgers. The licence to trap badgers for vaccination enables properly trained persons to register as an "authorised person" thereby avoiding the need to apply for an individual licence including providing extensive information.
During April, UK dairies processed 1,280 million litres of milk whilst BCMS recorded in the first quarter of 2022 that calf registrations to dairy dams fell by 0.3% compared to a year earlier, to 402,377.
Dairy Roadmap has extended the timetable by which farmers must have completed a carbon audit to June 2023.
The Agricultural Industries Confederation (AIC) have reported that over half of the year's expected supply remains unsold
July Policy Update:
The Government Food Strategy has been published. The objectives are stated as to deliver: a prosperous agri-food and seafood sector to ensure a secure food supply and contribute to the levelling up agenda; a sustainable nature-positive, affordable food system that provides choice and access to high quality products that support healthier and home-grown diets; and trade that provides export opportunities and consumer choice through imports without comprising regulatory standards for food. To achieve these objectives the Government aims to: maintain the current level of food produced domestically while boosting horticultural and seafood production, ensuring that, by 2030,pay,employment,productivity and skills training will have risen in the agri-food industry; halve child obesity by 2030;reduce greenhouse gas emissions and the environmental impacts of the food system; and contribute to the export strategy goal of reaching £1 trillion of exports annually by 2030
The Sustainable Farming Initiative has opened for applications following trials with more than 4000 farmers to test the new scheme. Those with no other agri-environment agreements in place can apply on-line immediately while all others must notify the RPA of their wish to apply. The scheme will open with two soil standards and a moorland standard.
Defra has announced that £12.5 millions of funding from the Farming Innovation Programme will be set aside for research and development focused on sustainable farm based proteins.
The Scottish Government has advanced the payment of the initial Basic Payment to September.
Between 2018 and 2019 the UK's carbon footprint fell by 2%; greenhouse gas emissions have continued to fall from the peak in 2007 but are still 8% higher than in 1996 with emissions associated with imports from China being 67% higher than in 1996.
Defra has released £30 millions from the Farming Investment Fund to provide grants of up to £300,000 to enable farmers to purchase equipment to process, diversify and add value to their produce after harvest or rearing.
Defra has announced that the Slurry Infrastructure Grant will open for applications in the autumn.
The Scottish government have reported that agricultural greenhouse gas emissions fell by 2.9% between 2019 and 2020.
Dairy Crest has been fined £1.52 millions for pollution incidents at its plant at Davidstow in Cornwall.
Defra has published the results for 2019/20 of the analysis of the profitability and resilience of farmers in England. The average level of debt was £248,000,slightly up on the previous year.17% had debts of at least £400,000 whilst 26% had debts of less than £10,000.The average level of debt amongst dairy farmers was £458,800.The average Net Worth across all farms was £1.867 millions. Average gearing was 12%,and the average liquidity ratio was 239%,The average Return on Capital was a negative 0.4% with 54% of all farms showing a negative return.
The UK average all milk price for April was 38.46 pence per litre (ppl),as a result of increases of 1.55 ppl in March and 1.03 ppl in April placing it significantly above the rolling 5 year average of 30.06 ppl. The initial estimates for May average show a further improvement of 1.94 to 40.39 ppl. The EU (excl UK) average for April was 1.13 ppl above the UK at 39.59 pence per litre.
Figures from BCMS show that the British milking herd in April fell by 1.6% compared to a year ago to 1.64 million head. However youngstock numbers increased by 4.4% to 941,000 head.
During May, UK dairies processed 1,329 million litres of milk. Liquid milk production rose by 6.9% compared to April and cheese production by 3.7%.
The latest AHDB forecast milk production shows a fall of 1% on last year to 12.23 billion litres.
An NFU Milk Production Survey completed by 700 members has revealed that 15% are considering ceasing milk production while 7% are planning to cease production by 2024.
In the period 1 April to 11 June organic milk deliveries were reported to be down 7.8% compared to a year ago.
A report from Savills has suggested that 69% of of imports of fruit, vegetable, meat, cereals, dairy products and eggs in 2021 were subject to lower production standards.
The latest Global Dairy Trade Auction on 21 June saw a fall of 1.3% in the overall price index. Only butter at 2.4 % and skimmed milk powder at 1% saw price increases. The volume of product sold also fell by 3.5% compared to a year ago
