August 2011 Archives

Improved pig profitability is the aim of the 2012 BPEX Professional Manager Development Scheme.

The next scheme starts in January 2012, with training sessions over the course of the year including workplace projects relevant to managers’ current roles.

Attendance in the past has produced marked improvements from better staff motivation to improved conception rates and reduced piglet mortality. Now the selection panel wants to hear from more individuals already in a role with responsibilities and in a position to implement change in pig businesses.

BPEX levy payers may get help with funding - information and application form from Tess Howe, BPEX skills development manager, 07779 321078 or email tess.howe@bpex.ahdb.org.uk.  Applications close on 16 September.

Rising oil prices appear to have caused a surge in biofuel production last year, according to figures from US research organisation Worldwatch.

It says global biofuel production reached an all-time high of 105bn litres in 2010, up 17% on 2009. Drivers include high oil prices, a global economic rebound, and new mandates in Argentina, Brazil, Canada, China, and the US.

The US and Brazil are the two biggest ethanol producers, accounting for 57% and 33% of global output respectively in 2010. Corn is the main feedstock in the US, while sugarcane is the main source of Brazilian ethanol.

But Europe led the way in biodiesel production, accounting for 53% of all biodiesel in 2010. “However, we may see some European countries switch from biodiesel to ethanol because a recent report from the European Commission states that ethanol crops have a higher energy content than biodiesel crops, making them more efficient sources of fuel,” the report says.

My blog post last week about Gleadell having made its first shipment from the revamped port at Rye in East Sussex prompted a call from one eagle-eyed reader this week.

Having said that the port had not been used for regular grain cargoes for several years, it appears that, well, it had. Prior to the port’s new deal with Gleadell, the grain storage and marketing arm of Wingham-based Grain Harvesters had been exporting from Rye for several years. The firm’s Charles Roberts tells me that some 44,000t was exported through there in total last year, mainly wheat destined for the near continent. The firm plans to use another local port to export wheat from local growers this season.

The Renewable Energy Association has set up a campaign urging government to support the generation of heat and power from biomass.

Timed to coincide with the Renewables Obligation banding review, the “Back Biomass” campaign says future support and policy must be sufficient to stimulate investment in biomass technology.

A number of large projects - including two from Drax Power - are in the pipeline, and provided support levels are maintained, they should make a big contribution to meeting UK renewables targets, the REA’s Gaynor Hartnell said. See http://www.backbiomass.co.uk/index.php

Farmers attending this year’s Dairy Event and Livestock Show will get the chance to debate a range of business topics with the experts.

A series of 20 minute debates will run on both days of the show, covering everything from avoiding cross compliance problems and succession planning to renewable energy options and financing expansion.

Day one will also see The Great Dairy Debate take place, featuring representatives from NFU Scotland, First Milk, and DairyUK, chaired by industry commentator Ian Potter.

Go to http://www.dairyevent.co.uk/ to find a timetable for the debates and further information about the show, which will be held at the NEC in Birmingham on 6 and 7 September.

A big rise in exports saw more than 67,000t of fresh and frozen beef leave the UK in the first six months of this year.

Trade is up by almost 40% in volume and 33% by value, according to the latest HMRC figures, which also show imports are down.

Lamb exports already account for about 30% of production and rose by a further 5.8% to 41,296 tonnes in January to June this year, with the value of this trade increasing by 13%.

Beef imports to the UK fell by 2.7% and sheepmeat imports by 18%.

The first cereal shipment has left Gleadell’s refurbished and expanded export facility at Rye in East Sussex.

The MV Shetland Trader was loaded with 2000 tonnes of Cordiale milling wheat, destined for a trip round the UK shores to Scotland, giving end users there quality new crop milling wheat a month before their own new crop.

“Another plus for our end user customers is that cargoes of this size are good business as they are not tying up large amounts of cash and store space - 1,500 or 2,000 tonnes every three weeks are a better bet for them,” Gleadell trading manager Marc Rogerson said.

The port at Rye had not been used for regular grain cargoes for several years, so the recent refurbishment would give farmer customers of the firm’s southern office a useful additional outlet for grain, he added.

Sheep farmers selling wool to Irish merchants have been advised to check for any tax implications when doing so.

The NFU said producers could be liable to a VAT charge on a sale unless it can be proved that the wool left the UK within three months of the sale. If wool is shipped to Ireland within three months the sale is zero rated for VAT.

Farmers are advised to ensure they have correct documentation and if the wool does not leave the UK at all, they must charge and account for VAT on the sale as it is a solely domestic UK transaction.

NFU livestock board chairman Alistair Mackintosh said farmers should obtain the merchant’s Irish VAT number and quote this on the VAT invoice raised for the wool supplied. “They should also keep copies of any correspondence that shows that the wool has left the UK within three months of it being sold.”

The amount of wheat, barley and oilseed rape in the ground for this harvest were all above last year, according to provisional results from Defra’s June 2011 Census.

It put the English wheat area at 1.82m ha, 1.6% above 2010, with the largest increase in the Yorkshire and Humber region. The total barley area was up 4% to 607,000ha, driven by a 17% increase in spring cropping, which more than offset a 7% fall in winter barley.

The oilseed rape area was 8% higher than 2010 at 650,000ha, the largest area ever. Both spring and winter-sown areas increased, by 37% and 8% respectively.

Uncropped land was put at 136,000ha, 9% below last year.

Farmers and budding cheese makers looking for a cheaper way into the food manufacturing sector, now have a possible way in following the launch of a mobile cheese-making trailer.

Derby-based MCE Engineering has converted a box van from Ifor Williams Trailers into a fully equipped cheese making facility called The Little Cheesery. The unit is capable of producing up to 35kg of cheese a day and costs around £40,000, although will also be available for hire.

MCE Engineering director Pete Murray said the firm would also be exploring ways in which the mobile factory could be shared among cooperatives of farmers or food producers to keep costs down.

The Crown Estate is offering a Farm Business Tenancy on land and buildings at Birthorpe Manor and Pointon Cottage farms on its Billingborough Estate near Sleaford in Lincolnshire. But is asking potential tenants to tender for a rent that they would be prepared to pay using two methods.  The first is to provide a single figure for the rent, which will remain fixed for three years, at which point it will be reviewed. The second is to provide a figure for a base level of rent to be fixed for the full five years and a variable top-up element to be based on a percentage of the average feed wheat price in November of each year.

The Tenant Farmers Association said it was pleased to see some "new thinking" from the Crown. Chief Executive George Dunn said: "Price volatility has become commonplace in agricultural commodity markets in recent years.

"To date, however, landlords have been unwilling to show much flexibility and we are therefore extremely pleased that the Crown Estate has taken this small, but important step to find a way in which price volatility can be addressed”.

“Although the Crown Estate has asked potential tenants to tender both on a fixed and variable basis, the TFA is urging it to prefer those tenders from tenants who have put forward a proposal using the variable method.  That way, we will be able to review how the initiative impacts upon the landlord-tenant relationship over the five years of the arrangement."

Companies, colleges and organisations looking to offer woodland management training in the eastern region can now claim up to 65% funding towards delivering courses for eligible participants.

Woodfuel East has announced the scheme as part of its programme to boost innovation and enterprise in the east of England’s woodland economy.

“At a time when growing numbers of woodland owners and managers in the region are looking to make the most of an anticipated boom in demand for wood fuel, it is one of our top priorities to ensure there is easy access to high quality, well-targeted training,” Edwin Van Ek, Manager, Woodfuel East, said. “I would urge training providers to get in touch with us to discuss their future training programmes and find out more about the support we can provide.”

Cheshire-based food, feed and fuel distributor NWF Group has reported its third year of record profitability.

Pre-tax profit for the full year ending 31 May 2011 was up 7% on the previous year to £7.6m, on revenue 22% higher at £463.8m. Operating profit was up 3.3% to £9.3m, basic earnings per share were up 11% to 11.5p, while net debt was reduced by almost 19% to £11.3m.

NWF’s feeds business almost doubled operating profit to £4m as prices rose, more compounds were sold direct to farmers and operational efficiencies were made across its mills and blends operations. Operating profit in its food sector recovered from the first half of the year, but was still below last year at £2m. Operating profit in the fuels business was also down on 2010 at £3.3m.

“Progress in the new financial year has been in line with the board’s expectations with all divisions starting as planned,” chairman Mark Hudson said. “The markets for the group’s products and services remain resilient and robust. With a very stable operational and financial base we continue to target development opportunities.”

HMRC has decided not to appeal a decision made earlier this year which may help other farmhouses qualify for Agricultural Property Relief from Inheritance Tax.

The case, heard by the First Tier Tax Tribunal in May, is known as the Golding case and allowed a claim for APR from inheritance tax on a farmhouse which was part of a 16 acre smallholding.

Savill’s Clive Beer and Alan Neal of MFG Solicitors advised Mr Golding’s family. The case supported existing principles, contrary to the Revenue's efforts to undermine these, said Mr Neal. It also introduced important new principles which supported the working farmer.

Rising input prices, late sfp payments and changes by Natural England to environmental scheme payment dates mean farmers are stretched to the limit and need to monitor cashflows very carefully, says farm business consultant consultant Ali Gray of Strutt & Parker’s Morpeth office.

Knowing your cash position and anticipating squeezes is more important than ever.
There are profits to be made but if you are forced into a sale for cash flow reasons you may miss out, says Mr Gray.

On top of input price increases, the extra feed costs from last winter mean that many farm accounts are under pressure just as rent payments are about to be due.

Changes to environmental stewardship scheme terms mean that Natural England will pay in two windows from January to March and October to December, rather than payment dates being predictable and linked to agreement start dates as in the past.

Oilseed rape exports are leaving the UK in an Armada of boats heading for Germany, France and Poland, among other EU destinations. Record rape yields here are helping to make up for an anticipated overall shortfall in production compared with likely demand across the EU.

Spot prices were £365 to £368/t ex farm as Farmers Weekly went to press on Wednesday (3 August). Oilseed rape oil has been trading at a significant premium to soya oil for several months and the outlook is firm, say traders.