Survival of smaller farms
Survival of smaller farms
By Robert Davies
Wales correspondent
SMALLER livestock rearing farms have a future, providing management is simple and flexible, although a monthly income outside farming offers extra security, according to Welsh beef and lamb producer Ifor Humphreys.
"Margins will stay too tight for expensive frills, so overheads have to be kept in check," insists Mr Humphreys, who owns 78ha (190 acres) of permanent grass in three parcels. The main unit is Upper Bryntalch at Abermule, Powys.
Stocking consists of 30 crossbred suckler cows and 450 breeding ewes. He owns little machinery and his main tractor is 23 years old. He told visitors to an NFU organised farm walk that he operates single-handedly, except for silaging, and his buildings are adequate.
Inputs are tightly controlled. Herbicides are used just for spot treatments, only 8t of nitrogen, 3t of phosphate and 4t of potash are applied annually. A total of about 20t of cattle cake and 12t of sheep nuts are bought each year, and animal health products cost £3000.
"Each year we sell about 700 prime lambs, 80 cull ewes, 35 prime cattle, six cull cows and 900kg of wool, but subsidies, including agri-environment payments, contribute about 30% of total farm output.
"Even in a normal year, it is difficult to generate enough income to provide a reasonable living for the family and have something over to invest in the business. In 1996 I decided to try to get hold of extra land in the village, but it went for £4500/acre.
"By the time extra stock and quota were acquired there would not have been a sensible return on the investment. Instead, we bought the village pub and leased it out.
"We now receive a monthly income and the eventual return will be far better than from investing the same amount in farming."
Mr Humphreys claims that keeping an open mind about management improves his businesss chances of survival. Before foot-and-mouth his Texel cross lambs were sold at a local auction, but some will go deadweight in future.
Limousin sired April/May born heifer calves were finished off grass at about 18 months old, but as restrictions prevented him buying replacements this year, the best were bulled. This could become standard practice to avoid Holstein influence.
To optimise growth rates he decided to stop castrating bull calves. This, and using good quality hired bulls, allows him to finish calves at 12-15 months old.
"They kill at about 300kg deadweight and most grade U or R. This simple system is easier and more cost-effective than trying to take them through another summer for a second premium payment." *