Market Report
Grain market report
The market leading up to the 2024 harvest has been volatile due to a challenging growing season. Prices have generally declined, influenced by harvest pressures in the northern hemisphere and an upward revision of global wheat estimates by the USDA.
The UK wheat market encounters difficulties due to reduced demand, driven by competitive barley and imported maize prices. Additionally, growing US stocks and aggressive Russian wheat sales add complexity, especially considering the likelihood of lower EU production and potential quality concerns. Predicting the outcome isn’t straightforward1. Farmers must navigate these challenges to remain competitive globally.
Recent weeks have seen progress in the UK Winter Barley, benefiting from improved weather conditions. Yields vary but generally align with the 5-year average level, which may be a relief to some. Quality remains mixed, and domestic barley demand has slowed down, with suppliers not wanting to sell just yet. In the malting market, we await harvest progress and quality results. Some are looking promising but there is a way to go yet.
Rapeseed markets have been volatile, influenced by soybean and energy markets amongst other things.
Some harvesting has taken place in the UK, again with very average yields. How much OSR (oilseed rape) will be sown for next harvest? Some farmers may consider companion crops for sustainable farming initiatives.
As grain harvests commence, the focus is, without doubt, on timely storage - getting grain harvested and into the shed before marketing as EU predictions for yields are reduced due to the extreme weather which has been witnessed in recent months. Markets will continue to be influenced by what is going on across the world, USDA recently reported that US winter wheat harvest was 71% complete as at week ending 14 July. This is well ahead of the five-year average of 62%, and up from 53% last year. Russian agricultural consultancy firm IKAR increased its estimate for the country’s wheat crop recently, now at 83.2Mt from 82.0 Mt previously. However, recent hot weather in eastern Ukraine and southwest Russia is a watchpoint for the country’s maize crop development.
Sustainable Farming Incentive
2024 Offer
The Sustainable Farming Incentive (SFI) is an accessible program for all farms. Designed to replace some of the lost Basic Payment Scheme (BPS) income, SFI focuses on mitigating negative environmental impacts caused by land management, including air, soil, and water pollution. By providing “public monies for public goods,” SFI encourages sustainable practices.
In summer 2024, an expanded SFI will offer 102 options, including over twenty new actions and more than fifty actions which were previously available under Countryside Stewardship (CS) Mid-Tier and Wildlife Offers These actions, will now be merged into a single scheme. Over ninety actions will have a three-year duration.
Options available include actions for soils, precision farming, nutrient management, pest management, species recovery and management, moorland actions, grassland options, arable options, boundary features, actions for waterbodies, buffer strips, agroforestry, organic farming, heritage payments, common land and management payments.
For more information get in touch or www.fishergerman.co.uk/insights/publications/sustainable-farming-incentive-actions-2024
Hedgerow Regulations now law
In May 2024, the Management of Hedgerows (England) Regulations became law, setting a legal framework for hedgerow management practices. Key provisions include:
Buffer Strip:
A 2-meter buffer strip alongside hedgerows, where green cover must be maintained. No cultivation, pesticides, or fertilizers are allowed within this zone.
Cutting Ban:
Hedgerow cutting is prohibited from March 1st to August 31st.
The regulations will be enforced by the Rural Payments Agency (RPA), fairly and proportionately and they have been talking to farmers and others about the best approaches. From day one, they will take an advice-led approach, with stronger actions in only the worst cases.
Hedgerow Management Rules: Early cutting and trimming
When to Notify: Before cutting or trimming a hedgerow in August to sow oilseed rape or temporary grassland, you must notify the Rural Payments Agency (RPA) annually.
Permitted Actions:
• Cut or trim the in-field side of the hedgerow (and the top if not accessible from an adjoining field).
• Trim the length of the hedgerow next to where you’ll sow oilseed rape or temporary grass.
Notification Process:
• Email or write to the RPA at ruralpayments@defra.gov.uk Include crop details and relevant land parcel numbers. Use the subject heading “Hedgerow management cutting and trimming rules notification.”
You do not need to wait for written permission before carrying out any work. As long as you meet the rules of this provision, you only need to make sure your notification is received by the RPA. You should make sure therefore that you receive an acknowledgement of your notification from the RPA before carrying out any work. For email notifications, this will be the automated RPA acknowledgement.
Biodiversity Net Gain
BNG became mandatory in England on 12 February 2024 under Schedule 7A of the Town and Country Planning Act 1990 (as inserted by Schedule 14 of the Environment Act 2021).
The objective is that developers must ensure that a development results in a better-quality natural habitat than before and must deliver a 10% BNG.
There are some more specific local policies, so it is important to get early advice for any planned development. BNG can be an opportunity for some farmers who want to deliver off-site mitigation, but there may be some farm businesses affected when considering new infrastructure or diversification.
Click here for more information.