· The UK has signed the G20 Agricultural Declaration which encourages more sustainable practices across the planet, including halting and reversing deforestation.
· The annual report for 2023/24 of the Defra Farming and Countryside Programme has been published. A few points noted here:
o 1200 farmers exited from farming at a cost of £9 millions
o 7,779 holders of agreements under the Environmental Stewardship and Higher Level Stewardship schemes were paid a total of £114.2 millions
o 30,149 holders of agreements under the Countryside Stewardship scheme were paid a total of £374.5 millions
o £13 million was awarded under Animal Health and Welfare grants.
o 13,250 schools benefited to a total of £2.2 million under the School Milk Service
· The Soil Association has worked with 12 industry partners and 685 farms to assess 240,000 hectares of UK farmland to provide a road map for improving soil health, reducing carbon emissions and supporting biodiversity.
· Since the 2019-24 Parliament, the funding of agriculture in the UK has remained consistent at £2.4 billion. Yet farm input prices have increased by 44%. To offset the increase in costs, the Defra budget would need to increase by £1 million to £3.4 million.
· As at 1 June 2024 the number of people working on agricultural holdings in England was 285,000 down 2.6% on a year earlier.
· The Farm Business Survey for 2022/23 shows:
o The average level of liabilities across all farms was £294,600, up 8% on 2021/22
o The average net worth of all farms was £ 2.2 million with 49% having a net worth of at least £1.5 million
o The average gearing ratio was 12%, largely unchanged over the last decade.
o The average liquidity ratio was 321%, the fifth consecutive increase
o The average Return on Capital Employed was 0.5%, down 0.5% on 2021/22
· The Farming Countryside Programme has reported a £130 million underspend in the agricultural budget by Defra for 2023/24 taking the total to £358 million over the past 3 years.
· Market background-Sterling closed up against the Euro and US dollar, having been weaker against both during the month. Crude oil prices remained volatile this month, with a generally downward trend but the gold price continued to improve this month, once again beating its all-time high and for the first time exceeding the £2000 mark.
· The UK milk price rose more significantly in July than in previous months. The UK average all milk price for July, reported in September, was 40.07 p/l:1.15 p/l up and 4.40 p/l above the price a year earlier. Draft figures for August suggest a further increase in the region of 1 pence per litre. The EU average farmgate milk price for July was marginally above the UK average at 40.30 p/l,0.20 p/l above the June average and 1.64 above the price a year earlier.
· Bluetongue BTV-3 has been confirmed in the East Riding of Yorkshire and parts of Lincolnshire. Thus, joining restricted movement zones in most of Eastern and South East England.
· A general licence has been made available which allows farmers to vaccinate their animals against Bluetongue virus serotypes 1,2,4 and 8 in areas which are outside a restricted zone. Defra has also permitted the use of 3 unauthorised Bluetongue serotype 3 vaccines subject to licence. The BTV-3 vaccines claim to reduce viraemia rather than prevent it.
· AHDB, Flock Health Ltd, Ruminant Health and Welfare and the University of Nottingham are inviting farmers to complete a survey concerning the impact of bluetongue virus.
· The number of new herd bovine TB incidents in England in the year to June fell by 2%, compared to the previous year, with falls of 2% in the High-Risk area and 15% in the Low Risk but an increase of 3% in the Edge area.
· According to new data from BCMS the number of cattle on farms in Great Britain as of 1 July was 7.79 million head, down 1.8% on a year earlier. The milking herd stood at 1.61 million head, down slightly on a year previously (0.3%). Cattle aged less than 2 years fell by 25,000 head but the 2-4 year age group rose by 16,000 head.
· During July, 1,197 million litres of milk was available to processors, down 0.4% on June.
· Muller has increased the price paid to members of its Advantage programme by 1 p to 41.25 p/l. However, its proposed takeover of Yew Tree Dairy is being investigated by the Competition and Markets Authority.
· Arla has increased its price by 0.89 p/l taking its UK manufacturing price to 43.33 p/l for conventional milk and 54.2 p/l for organic milk.
· Lactalis has given notice of termination to 10 dairy farmers in Dumfries and Galloway and 2 in Ayrshire. Whilst Freshways has acquired Totally Welsh Dairy, based in Haverford West.
· According to NIQ Homescan, sales of organic milk in the 12 weeks to 13 July increased by 5% while sales of non-organic milk fell by 0.8%. It should be remembered though that organic milk comprises only 3% of the total market for milk.
· The Oxford Farming Conference, in partnership with McCain Foods (GB) Ltd, will launch the "Inspiring Innovators" programme at the 2025 conference whereby up to 6 selected participants will have the opportunity to present their concepts whilst a new regenerative farming conference LandAlive will take place at the Bath and West Showground on 22/23 Nov.
Hope that’s of interest.
As ever happy to answer any queries/questions
Tim
Tim Brigstocke
Policy Director, RABDF