Farmers cut livestock in face of soaring costs

SOARING input costs and concerns over post-Brexit support are prompting beef and sheep producers to make significant cutbacks in the number of livestock on their farms.

A survey of beef and sheep farmers across England and Wales found more than a third, at 36%, of sheep farmers plan to cut flocks by 6% over the next year. Meanwhile, 40% of cattle farmers intend to reduce herd sizes by almost 10% over the same period.

Carried out by England’s National Farmers Union (NFU) and its Welsh counterpart, NFU Cymru, late last year, the Livestock Production Intentions survey questioned more than 1000 English and Welsh farm businesses about their 2023 plans.

Most respondents (92%) said they were worried about the cost of fuel prices affecting their business’ viability in the coming months, and 85% cited high feed prices as a top concern.

Soaring gas and electricity costs (82%), the passing out of Basic Payment Scheme payments (79%) and fertiliser prices (78%) added to producers’ worries.

About 90% of beef and sheep producers made forage in 2022, although poor growing conditions and high fertiliser costs meant that 80% made the same volume or less than previous years.

For 2023, 55% said the plan is to buy less feed, while 77% intend to buy less fertiliser – decisions likely to increase the number of days to slaughter, with 31% of sheep farmers and 30% of beef producers predicting longer finishing times.

In response to the energy crisis, almost half (49%) of beef and sheep farmers said they are interested in renewable energy generation, but capital outlay, return on investment and planning issues all pose barriers.

Summarising the survey’s findings, NFU chief livestock adviser John Royle said businesses need to consider the impact that reducing fertiliser applications will have on forage yields.

“There are ways to mitigate the impact of reduced fertiliser applications, such as timely

There are ways to mitigate the impact of reduced fertiliser applications, such as timely applications of farmyard manure and, where appropriate, management changes.

John Royle National Farmers Union applications of farmyard manure and where appropriate management changes such as adopting rotational grazing, reseeding and mixed swards and implementing breeding policies to ensure the most feed efficient animals,” Royle said.

While improving productivity and resource use efficiency are key aspirations for the livestock sector, the high cost of inputs is having a measurable impact on the sector and on its ability to invest in infrastructure and technology, he said. Farmers Guardian a new additional payment, backdated to June 2022, for the first 50 hectares (£20/ha, or about $38/ha) in an SFI agreement in a bid to attract small and tenant farmers who are currently underrepresented in the scheme.

There was also an increase for those in CS agreements, with revenue payment rates set to rise by an average of 10%, covering ongoing activity such as habitat management.

Mark Tufnell, president of the Country Land and Business

STEWARDSHIP:

About 30 new actions will be available under the new Countryside Stewardship Plus scheme by the end of 2024.

Association, said the standards and payments are “broadly in line with what was expected” and will encourage many arable farmers to sign up.

“But there is little new in this for those on moorlands or the hard-pressed hill farmer struggling to earn a living,” he said.

Tufnell said that with the current economic situation, the government needs to make the schemes accessible for all farmers and he encouraged every farmer to look “very closely” at them.

Farmers Guardian