News

Still reasons to be optimistic despite challenging year

Farming faces a challenging year – but the best growers and livestock producers will continue to run successful businesses, say analysts.

The coming 12 months will see many farm businesses face increased pressure on profitability, according to Outlook 2022 – the annual look at the year ahead by farm business consultants Andersons.

While output prices generally look set to be good, the issue of rising costs will take centre-stage, says Andersons partner Richard King. Coupled with another drop in the Basic Payment to farmers, this is likely to see profits fall, he adds.

“The last two years have been dominated by the twin shocks of Brexit and Covid. It seems increasingly clear that there is not going to be a date when these two issues can be considered ‘done’ – the effects will be with us for many years.”

High prices

Farmgate prices have been buoyed for some years now by the relatively weak value of Sterling, says Mr King. They remain high across many farm sectors – with some notable exceptions such as pigs.

But it remains to be seen whether prices will be sustained if consumers change their buying habits post-Covid. “Events have thrown many of the previous certainties up in the air and it is not entirely clear yet where the pieces will land.”

The coming 12 months could see Sterling appreciate against the Euro and Dollar – with a negative impact on farm incomes. At the same time, costs for many key inputs – such as fertiliser and fuel – have risen rapidly. Price rises have also been seen in the cost of many capital items, such as machinery, equipment and buildings. Lack of labour is an ongoing issue for many businesses too – including those in the sector livestock (see page 33).

“This is making life more difficult for those farmers who wish to invest in their businesses,” says Mr King. Rising inflation is also making its mark felt in the cost of general overheads such as office administration.

These changes in the farming economics are all set against a long-term imperative to address environmental issues – especially around climate change and pollution. This will require armers to “to their bit” alongside other industries.

Despite this a raft of challenges, Mr King has an upbeat message for

Some farm sectors have fared better than others

(Photo: Simon Collins/ Shutterstock.com farmers. “With so much uncertainty around the external business environment, it might be easy to become fatalistic,” he says.

“Farmers have control over how they structure and operate their businesses. Experience shows that being the ‘best in class’ and having a longterm plan allow farms to be successful – whatever the economic and political conditions.”

Young farmer wins inaugural award

Third-generation farmer Charlie Beaty has been named Young Farmer of the Year for Warwickshire.

Ms Beaty, 26, (pictured) works at the Dairy Farm, a family-run farm on Maxstoke Lane, just inside the Warwickshire county boundary. She will be presented with the trophy and a cash prize at the Kenilworth Show this coming June.

It is the first time the award has been made. It has been granted and made possible by the Kenilworth and District Agricultural Society (KADAS) supported by Brian Dalby and the Warwickshire Agricultural Society.

A panel of three judges hand-picked Ms Beaty for the accolade. It recognises farmers under the age of 30 who have a great work ethic, demonstrate a real knowledge of their area of agriculture and are positive ambassadors for UK farming.

Ms Beaty said: “This is a time of change for farming and agriculture, but every day is different and I love it.

“I’m committed to improving and continuing to improve the farming business we run in this big period of change.”

A Harper Adams University graduate, Ms Beaty has spent time working in Australia and New Zealand since graduating in 2017.

She now works the farm in Meriden with her dad and uncle. All three follow her grandad who initially took on the tenancy in 1958.

News

Farm fires spark calls for more safety checks

Rural insurer NFU Mutual is urging farmers to introduce extra safety measures after the cost of farm fires soared by 40% to more than £69m.

Electrical faults were a major cause of farm fires in 2020, says the company, which insures three quarters of UK farms. Extreme weather and dry conditions also contributed to the huge cost of incendiary incidents.

The eastern region was the worst-affected region, with costs totalling £21.5m. Northern Ireland was the second worst-affected region where fire claims cost £14.7m. It was followed by southwest England where claims reached £8m.

Fire spreading from electrical cabinets underlined the importance of regular inspections by competent professionals – in addition to regular dust-downs and ensuring clear space around control panels. an emergency plan in place to protect everyone who might live on, work at or visit the farm.

“Farmers are under huge pressure to keep the country fed and adapt their businesses to changes in agriculture, so regularly reviewing your fire risk assessment and acting on your findings is vital to reduce the risk of seeing your efforts go up in smoke.”

Most fires were preventable by carrying out routine maintenance and inspection on heating systems, electrical installations and machinery – and controlling hot works within farm workshops, said Ms Van Gestel.

“Implementing and maintaining good standards of housekeeping, particularly around the storage of combustibles and flammables such as hay, straw and fuels, will also reduce the risk of a fire spreading.”

Alarming trend

Fires involving increasingly popular biomass boilers were an alarming new trend as more farmers sought alternative fuel sources. Risks can be mitigated with proper servicing and maintenance – and good housekeeping and waste disposal procedures.

Agricultural vehicle fires accounted for an additional £20m during 2020. Fires writing off combine harvesters prompted the insurer to discount premiums for farmers fitting accredited fire suppression systems to vehicles.

Evita Van Gestel, of NFU Mutual Risk Management Services, said fires put businesses as well as lives at risk: “It’s vitally important to have

Five fire safety tips

Have a plan in place – Ensure everyone on site knows what to do in the event of a fire. Don’t mess with electrics – Electrical faults are a major cause of fire – and can kill. Suppress the risk – suppression systems can detect, contain and extinguish fires. Good maintenance – Ensure materials and machinery are stored correctly. Control hot work – Welding and similar work should be done outside, or at least in an area away from combustibles

Vehicles worth an extra £20m went up in flames The lapwing is among the species causing concern

‘You can make a difference to wildlife’

Farmers, gamekeepers and land managers are being encouraged to help wildlife by getting involved in next month’s Big Farmland Bird Count.

Due from run for a fortnight from 4-20 February, the annual bird count is organised by the Game and Wildlife Conservation Trust (GWCT). It is increasingly popular with a record-breaking number of participants and last year.

“We are challenging the UK’s land managers to beat their own record and make 2022’s count bigger than ever,” says GWCT organiser and head of advisory services Roger Draycott.

One in four bird species are in serious trouble, according to the latest Birds of Conservation Concern (BoCC) list. Farmers can make a real and immediate difference by adopting effective conservation measures, says Dr Draycott.

As well as recording numbers, the bird count highlights the work already done by farmers and gamekeepers to help reverse any decline. It also gives a national snapshot of the health of the UK’s birdlife.

Last year saw the number of counts submitted leap from 1,500 to 2,500, with participants monitoring 1m hectares of land across England, Scotland, Wales and Northern Ireland. Organisers hope that even more people will get involved this year.

The GWCT Big Farmland Bird Count is sponsored by the NFU. Carrying out a count on your land takes just 30 minutes.

To download a count sheet and take part, visit www.bfbc.org.uk.