Agrifacts July 2018

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AgriFacts July 2018 Your monthly roundup of news, prices and other farming matters

Market Commentary As I write this article the global markets remain in a state of flux. News stories are full of ‘noise’ about weather impact on crops, be that here in the UK or overseas in the US, Russia or Australia. You can take your pick of reported ‘market moving’ stories but the key is the correct interpretation of the impact they may just have on the UK markets. This time of the year can result in a number of false positives or negatives and reality is it always comes down to fully understanding your market place and your commodities. The recent months have seen the instigation of many import taxes on various commodities and products around the world, but I do wonder how many UK farmers really understand the impact these taxes could have on them as individuals and more importantly if the powers that be in Westminster understand the impact they could have on UK trade by removing various EU trade mechanisms come Brexit. We ignore Newtons third law – ‘for every action, there is an equal and opposite reaction’ at our peril but it is the smart farmer who should be able to work out how to get the best from an indifferent situation. This should come through a full understanding of what they can grow successfully, by understanding their local market place and being ‘the best they can be in every aspect of what they do’. It’s not just farmers who are worried about the future and its uncertainties. UK cereal consumers are realising that they may also need to engage with their suppliers. The ‘stand back and it will come to me’ days may be on the cards as trade wars bite and new agricultural policy, post Brexit, could just make the UK

an importer of cereals rather than the exporter it has been for so many years. Cereals remain the corner stone of much of the UK agricultural industry be it through seed, machinery, fertiliser and chemicals, through to the consumers, be they livestock, millers, ethanol plants or distillers, but we should never forget that most consumers can use imported grains or alternative commodities. The increase in maize imports into the UK happens almost annually, but understanding the trade mechanisms involved to ship non-EU maize to the UK, so you know the real value / price, can only help when valuing ex farm UK cereals. Similarly, fully understanding the impact that the current price spread between US soybeans against EU OSR is vital, as is knowing which countries have imposed new import taxes on US soybeans and maize and what this could do for UK domestic market consumers. Markets are always exposed to changes but the challenge for all of us is to improve our knowledge and understanding of the basics – supply, demand, logistics and legislation – we ignore all 4 at our peril as we enter the uncertainty that evolves around Brexit. Cecilia Pryce Compliance, Shipping and Research Openfield

To add to the confusion we have President Trump’s ongo-

Month (ex farm) Midlands

Feed Wheat

Feed Barley

Oilseed Rape

Currency

July 2018

£155.00-£165.00/t

£133.00-£140.00/t

£296.00-£300.00/t

£/€ =1.1314

Nov 2018

£160.00-£168.00/t

£140.00-£148.00/t

£305.00-£309.00/t

€/£ = 0.8838

May 2019

£166.00-£174.00/t

£146.00-£155.00t

£310.00-£315.00/t

$/£ = 0.7558

Milk Data

Avg Monthly Price

UK Farmgate Milk Price

26.76 ppl

Fuel/Straw/Silage

Price

Fertiliser

Price

Red Diesel

63.17p/litre

34% N AN (bags UK) £/tonne

£245.00 (Nov)

Big sq Baled Wheat Straw

£91.00tonne

0:24:24 blend (bags) £/tonne

£285.00

Big Bale Hay

£95.00/tonne

20:10:10 blend (bags) £tonne

£265.00

p/kg dwt

Finished Steers

Finished Lambs

Finished Pigs

371.80

495.60

147.61


Countryside Productivity adjusted

Hedgerow Derogation

A number of items available for funding under The Countryside Productivity Small Grants scheme have been difficult to source within the 150-day deadline due to the popularity of the grant. The scheme has now been altered so that provided the equipment is ordered and paid for during the 150 days, the grant can be claimed when the equipment is delivered at a later date. Defra will contact farmers affected by this issue with the choice of re-instating their application or deferring it to the next round of the scheme. It is expected that another round of funding will open in the autumn on a similar basis.

It is possible to apply for a derogation to cut hedges on relevant fields from 1 August before any new grass lay or Oilseed Rape is sown during the month. Derogation requests can be made via post to: RPA, PO Box 352 Workshop S80 9FG or by email to: ruralpayments@defra.gsi.gov.uk (Subject ‘Cross Compliance Derogation’).

Farmers who are not eligible for Countryside Productivity grant funding may wish to consider the LEADER scheme instead, which also funds efforts to boost the rural economy. More information can be found at: https://www.gov.uk/guidance/rural-development-programme-for-england-leader-funding

Fertiliser Prices show annual rise Prices for ammonium nitrate opened at £220-£230/tonne for June and July this year. This is 22-28% increase on the same period last year, when prices were £180/tonne. Forward prices for August-September range from £230-240/tonne.

The following information should be included: • •

SBI and Business Name Land parcel reference numbers for the relevant fields, or a map showing the sections of hedge or trees that are to be cut/trimmed and any other supporting evidence for example photographs or diagrams.

Countryside Stewardship Mid-Tier: application deadline extended The deadline for mid-tier Countryside Stewardship applications has been extended from 31 July to 31 August 2018. Defra’s website states that more than 10,000 packs were requested before the end of May deadline. Although there have been delays, all packs should have now been received. For many farmers, the extended deadline will ease pressure during the busy summer period.

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Key Dates Date

Regulation

Restriction

10 July 2018

Natural England

Countryside Stewardship late revenue claim deadline.

20 August 2018

RPA

SEFA Catch Crops must be established by 20 August and be retained until at least 14 October.

31 August 2018

Natural England

The deadline to submit a Mid-Tier Countryside Stewardship application for agreements due to start 1 January 2019.

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

Fisher German is a limited liability partnership, registered in England and Wales. Registered number: OC317554 Registered office: 40 High Street, Market Harborough, Leicestershire LE167NX Regulated by RICS Fisher German LLP has tried to ensure accuracy and cannot accept liability for any errors, fact or opinion. Please do not use this as all the advice needed to make decisions.


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