Think big to be competitive
Think big to be competitive
ARABLE producers need to be involved in farming operations based around at least 1200ha (3000 acres) of globally competitive land if they are to remain competitive on world markets.
Farmacy chairman Vincent Hedley-Lewis told the conference: "As growers, we need to identify which of our fields are truly globally competitive, either on a year-by-year basis or permanently."
Mr Hedley-Lewis, who farms 861ha (2129 acres) of contracted and owned land from Birkholme in Lincs, added: "We have then got to be part of a team farming at least 3000 acres and possibly 5000 acres of such globally competitive land." That means a lot more co-operation between growers.
"I am looking at FBTs, mergers, management contracts, anything to expand the area of productive cropping, because we might be looking at up to 40% set-aside for the less productive areas."
But he warned: "Be sure to plan an exit strategy from any such relationships and be aware that such arrangements do not necessarily mean a job for both parties. We do need to work out the people issues at the outset, or we could waste a lot of time and professional fees."
What to do with uncompetitive land depends on location, he said. "For growers in the right area it makes sense to enhance the value of the estate and maybe look at realising some of that value or even selling up and reinvesting to farm on a larger scale somewhere else." Or it may mean a lot more set-aside.
More flexible attitudes to cropping and machinery are also needed. "We returned to barley to spread the harvest workload, which allowed us to drop one combine." That proved more profitable, despite the return of barley in wheat samples and the crops lower margin. *