Policy Update- January 2023

1. The Government has published legally binding targets to protect the environment, clean up air and rivers and boost nature. The Environmental Improvement Plan setting out how these targets will be achieved will be published this month.

2. The Basic Payment Ceiling for England for 2023 remains unchanged although the cost of the scheme will fall because of further progressive reductions. The Welsh Government has announced that the Basic Payment Scheme funding for 2023 and 2024 will remain unchanged at £238 million.

3. The June 2022 Farm Business Survey includes details of farming incomes in England for the year to Feb. Average Farm Business Income has increased across all farm types except specialist pig units. Average income for dairy farms increased by 52% to £140,200.The average Basic Payment across all farm types was £27,900,down 2% on 2020/21 but still accounting for 33% of average income. Almost 68% of farms had some form of diversified activity with 47% letting buildings for non-agricultural use.

4. As at 1 June 2022,the total labour force in the UK working on commercial agricultural holdings, including farmers and spouses was 470,264.

5. The Government has announced that 45,000 visas for seasonal workers will be available this year.

6. The UK average "all milk" price for Oct, reported this month, was 50.44 pence per litre, an increase of 1.64 above the Sept average,17.78 pence per litre above the price a year ago and still a long way ahead of the rolling 5 year average of 31.78 pence per litre. The EU Average for Oct was 0.28 pence per litre above the UK average at 50.72 pence per litre.

7. In the year to Sept, the number of new herd bovine TB incidents in England rose by 2 %,compared to the previous year, with an increase of 9% in the High Risk area but falls of 23% in the Edge area and 1 % in the Low Risk area. There were falls of 34% in Scotland and 9% in Wales.

8. GB Milk production is expected to reach 12.44 billion litres for the 2022/23 season, up 0.7% on 2021/22,mainly due to the mild autumn weather.

9. EU-27 milk production is forecast to fall by 0.2% per year in the 10 years to 2032 mainly due to expected reductions in the milking herd. Organic and grass based systems are expected to grow together with an increased focus on welfare.

10. First Milk has opened its £20 millions upgraded facility at the Lake District Creamery at Aspatria.

Tim Brigstocke

Policy Director.