Agrifacts September October 2021

AgriFacts September | October 2021

Your monthly roundup of news, prices and other farming matters

Market Update Harvest 2021 has certainly been testing with later crop development and a pretty miserable August frustrating combining. With better weather in early September however for most harvest is now complete and the general picture seems to be average rather than great yields but quality holding on.

concerns over Black Sea crop supply with Russia’s wheat export tax increasing in September and their export prices rising but with the USDA reporting an increased wheat area wheat futures prices have come off against their recent high’s.

The AHDB report a national Winter Wheat yield of circa 8.1t/Ha and spring Barley around 5.8-6.2 t/ha.

UK OSR yields were also better than the previous year according to the AHDB but against a backdrop of global tight supply and rising oil prices, OSR prices remain at the top end of their normal range.

Initial AHDB estimates indicate that there could be a 14.1-14.5Mt UK wheat crop compared to the 2020 figure of 9.6Mt as a result of a greater area being planted last autumn. UK wheat consumption has averaged 14.7Mt per annum so supply:demand is tight even before the introduction of E10 petrol and bioethanol demand.

The question now has to be whether prices will remain in this range for harvest 2022. With the 10th September WASDE report suggesting that projected 2021/22 global stocks could be higher with India, EU & Canada accounting for most of the increase they might soften.

The import/export balance for UK wheat is finely balanced therefore and quality will count when it comes to knowing what will be imported and exported. So far wheat prices are relatively good with global wheat supplies still being reported as tight despite a positive Australian wheat crop forecast. Some of this is due to continued

As ever managing that risk, particularly against a background of sharply increased fertiliser costs will remain the challenge David Kinnersley Head of Fisher German Agribusiness

Market Prices Month (ex farm) Midlands

Feed Wheat

Feed Barley

Oilseed Rape

Currency

October 2021

£180.5/t

£167.50/t

£498.50/t

£/€ = 0.85

January 2022

£185.5/t

£170.50/t

£502.50/t

€/£ = 1.38

Milk Data

Avg Monthly Price

UK Farmgate Milk Price

30.41 ppl

Fuel/Straw/Silage

Price

Fertiliser

Price

Red Diesel

56.15p/litre

34% N AN (bags UK) £/tonne

£355.00

Big sq Baled Wheat Straw

£55.00/tonne

0:24:24 blend (bags) £/tonne

£435.00

Big Bale Hay

£65.00/tonne

20:10:10 blend (bags) £tonne

£350.00

p/kg dwt

Finished Steers

Finished Lambs

Finished Pigs

411.10

530.50

155.96

New Agricultural Grant Funding Opportunity Opening October 2021 The new Farming Investment Fund is set to provide grants to farming businesses allowing them to make investments into equipment, technology, and infrastructure that will improve their profitability, operating efficiencies and benefit the environment.

The grant fund is set to open in October and will include two strands - the Farming Equipment and Technology Fund and the Farming Transformation Fund – Fisher German’s Agri-business team are advising farmers and landowners to consider the scheme should they have any substantial projects or purchases which may benefit from grant funding.

Grants from the Farming Equipment and Technology Fund will be available towards the purchase cost of a list of specified, pre-determined items.

Grants can be awarded for the purchase of multiple items that are deemed to improve farm productivity, manage water resources or add value to agri-food.

Grants from the Farming Transformation Fund will be available towards the cost of more substantial investments in equipment, technology, or infrastructure, with the potential to transform business performance. Farming businesses should begin thinking, planning and discussing potential projects which could add value to their current farming operations.

The BPS reductions witnessed in 2021 will be the lowest set of reductions across the next six-to-seven-year period as the government plans a gradual phasing out of these payments. Although the payments are decreasing, the overall funding is remaining constant until 2024 and the Farming

Investment Fund is one way in which the Government intends to redirect funding away from BPS. Potential projects could include: •

Precision agriculture and low-emission nutrient application equipment

•

In-farm water storage infrastructure, including reservoirs.

•

Precision agriculture equipment (low emission and variable-rate nutrient or pesticide application)

•

Robotic or automated technology

•

Items to improve animal health

•

Specialist forestry equipment

•

Equipment and technology for storing, sorting, or processing products

•

Large-scale precision agriculture projects.

With margins in agriculture already tight and set to get tighter with the reduction in direct payments in the coming years such schemes offer an opportunity to take advantage of funding to allow on farm investments to take place, keeping businesses moving forwards. Fisher German’s Agri-business team are more than happy to discuss any potential projects and assist businesses in making applications to obtain funding.

Charlie Fowler Agribusiness Consultant

Key Dates Date

Regulation

Restriction

15 September

Cross Compliance

For any land located in an NVZ, this is the start of the closed period for applying manufactured nitrogen fertilisers to grassland.

16 September

Cross Compliance

For any land located in an NVZ, this is the start of the closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to tillage land on shallow or sandy soils that have been sown with crops on or before 15 September.

30 September

RPA

1 October

Cross Compliance

You can burn heather, rough grass, bracken, gorse or vaccinium on land in upland areas from this date.

1 October

Cross Compliance

For any land located in an NVZ, this is the start of the closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to tillage land on soils that are not shallow or sandy.

31 October

Cross Compliance

If you hold a summer water abstraction licence (authorising abstraction wholly within the months of April to October), the Environment Agency will make actual abstraction return forms available to you from 31 October. You then have 28 days to send your readings to the Environment Agency

Sustainable Farming Incentive (SFI) Pilot application deadline.

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: The Head Office, Ivanhoe Office Park, Ivanhoe Park Way, Ashby de la Zouch, Leicestershire LE65 2AB 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.