Agrifacts November 2022

Agrifacts |

November 2022

Your monthly roundup of news, prices and other farming matters | Grain Market Report In the past couple of weeks the UK has seen lots of change, including another new prime minister. Since Rishi Sunak took office, markets have started to stabilise following the uncertainty that came with some of Liz Truss’s policies.

Following an easy, although very hot 2022 harvest there are uncertainties out there in the markets due to Avian Flu starting to take its toll, a reduction in the UK pig herd and recession fears. Some brewers have been reluctant to buy barley forwards due to high energy prices and question over demand from pubs etc. Recession fears, currency and crude oil have all been adding to the volatility of rapeseed recently too.

The global wheat market is mostly revolving around what is happening in Ukraine, Global grain markets w/c 31st October were predicably higher after Russia suspended its cooperation in the Grain corridor deal after Saturday’s attacks. Interestingly, 12 vessels that were loaded, the UN inspected and travelled on their way on Monday 31 October, this was one of the largest days of exports that has happened since the beginning of the grain corridor deal!

Despite 12 ships leaving Ukraine’s Black Sea port on 31 October, it had been reported that insurers had paused cover for new shipments using the corridor which will shut shipments down for at least 7 days. But, on Wednesday 2 November Russia decided to U-turn on its suspension, which has in turn reversed the increase earlier that week which were seen.

Although there is a lot of unpredictability around this, the current corridor deal is due to end on 19 November and at the point of writing this there is currently no talk of an extended deal. Talks will be ongoing with the key G20 meeting scheduled in Bali for the 15/16 November where Putin is expected to go, a possible target date for an extended or new corridor deal?

Alice Kilham Farm Business Manager – Openfield

| Grain Market Prices Month (ex farm) Midlands

Feed Wheat

Feed Barley

Oilseed Rape

Currency

2022

£260-265/t (Dec)

£235-240/t (Nov)

£550-555/t (Dec)

£/€ = 1.13

Milk Data

Avg Monthly Price

UK Farmgate Milk Price

48.86 ppl

Fuel/Straw/Silage

Price

Fertiliser

Price

Red Diesel

107p/l

34% N AN (imported) £/tonne

£790.00

Big sq Baled Wheat Straw

£40.00/tonne

Extran (34.5%) £/tonne

£865.00

Big Bale Hay

£80.00/tonne

20:10:10 blend (bags) £tonne

£715.00

p/kg dwt

Finished Steers

Finished Lambs

Finished Pigs

444.60

523.50

200.22

| Sustainable Farming Incentive applications now open The first tiers of the Sustainable Farming Incentive are now open for applications providing funding for managing soils on arable and improved grassland. Many farmers will already be qualifying for the scheme requirements so it is worth considering for all farms. The key points for the SFI 2022 are as follows: • Three-year agreements - with options for annual amendments including layering future SFI standards.

• Payment rates ranging between £22 and £58 per ha depending on the standard and the level chosen.

• First payment three months after joining, followed by quarterly payments thereafter.

• Applications open all year around. Online applications via the Rural Payments Service.

• Land in existing stewardship schemes may be eligible, but certain options cannot be ‘double-funded’.

• Scheme to be expanded in later years with more standards available and capital items added.

| Government commits to £110 million to help improve rural communities The Rural England Prosperity Fund (REPF) supports the aims of the government’s Levelling Up White Paper and Future Farming Programme and will fund capital projects for small businesses and community infrastructure which in turn will help to improve productivity and strengthen the rural economy and rural communities.

The fund will be operated by Local Authorities (LAs) which is a different approach to previous grant schemes. All LAs will get some funding and will be awarded based on a formula. Each LA must produce a ‘Local Investment Plan’. Hopefully, we will start to see grants appearing in local areas from early 2023. It is effectively a replacement for the previous LEADER and Rural Growth programmes under the Rural Development regulation that ended last year, but it will provide capital grants for the same sort of projects: • Farm diversification, including tourism enterprises.

• Support new and existing rural businesses to develop new products and facilities • The conversion of redundant farm buildings for other uses.

• Food processing and marketing ventures.

| Catchment Sensitive Farming national expansion Catchment Sensitive Farming (CSF) advice services are now available cross England. CSF aims to provide free locally informed, confidential, on-farm advice to help you make decisions on areas such as pesticide handling, water resources, slurry and manure management in farmyards.

| Key Dates Regulation

Restriction

30 November 2022

Cross Compliance

If you have a two-part tariff agreement for your water abstraction licence, expect to receive your second part charge after 30 November.

1 December 2022

Cross Compliance

You need to carry out your annual inventory of sheep and goats.

Date

Read the latest edition of Agriview here

| Forward thinking farm businesses embrace renewable energy Many farm businesses can use renewable energy and futureproof their supply. Read more here

fishergerman.co.uk 01858 410200 farms@fishergerman.co.uk