Unpaid Voluntary Environmental Land Management

Defra recently released data concerning the unpaid voluntary environmental management of land and attitudes towards the environment and understanding and awareness of the Campaign for the Farmed Environment. The data was collected from farms of at least 10 hectares of crops or grassland.

The findings show that during the crop year 2013-14, 450,000 hectares of land was managed under listed unpaid voluntary environmental measures with an additional 9,760 skylark plots and 7,387km of fenced watercourses. The largest land area of the measures listed was 161,000 hectares of fertiliser free permanent pasture followed by 109,000 hectares of over-wintered stubbles. The findings also show that 44% of farmers surveyed do some form of unpaid voluntary environmental land management. Many farmers think they are already doing enough for the environment and it was the main reason given by the 56% of farmers surveyed who do not have any form of unpaid environmental land management for not doing so. When those without any land already in unpaid voluntary environmental management measures were asked if they intended to do so, 15% answered 'Yes'.

The attitudes of farmers towards the environment are reflected also in their involvement in agri-environment schemes and 51% answered positively regarding membership of Entry Level Stewardship (ELS) scheme. When asked about their decision making regarding the environment about 80% of farmers surveyed put the greatest importance on the efficient use of inputs and protecting soil and water and considered that these should be put in the 'very important' category. Protecting wildlife was also important to a majority of farmers with 59% considering it 'very important'.

The number of farmers who consider that they have a good understanding and awareness of the Campaign for the Farmed Environment remained steady at around 15% between 2012-13 and 2013-14, 47% having some understanding and 12% having little or no idea. The most common source of information regarding the CFE was the farming press (64%) and CFE leaflets (43%) with 22% saying they had none.

API Prices Lower Than Last Year

The agricultural price index (API) for all outputs increased by 0.8% while the API for all inputs decreased by 0.4% in April. Prices overall are lower than last year. At the same time last year the price index was 7% higher than this yea for output while inputs were 4.2% higher.

On the outputs side all price indices for crops this year are lower mainly due to a supply shortage due to the poor harvest of 2012. Energy prices fell again. Feed prices increased by 0.7% over the month but are still 11% lower than last year. Fertiliser prices also fell by 2.2% in April but are still 9.1% lower than last year.

Milk Prices Contribute To Rise In API

The overall agricultural output price index increased by 2.3% in November, the first time it has risen since May 2013. Even though the API output price index rose this November from 118.1 to 120.7 it is still 2.4% lower than November last year. The API for all inputs fell by 0.2% from 112.9 to 112.7 and is 2.1% lower than last year.

The continued increase in milk prices was one of the main contributors to the rise in output prices. Both milk and milk products were still in global demand for the sixth month in a row. Prices are up 15% on last year. Cattle prices are continuing to fall after the high prices seen in the summer.

Input prices haven't changed much. Fertiliser prices are 18% lower than last year but expected shipments of straight nitrogen fertiliser from North Africa were delayed due to regional problems resulting in a slight rise in price.

Farming Incomes Up In English Regions

All English regions have seen an increase in their total farm incomes over the past five years according to a statistical release from Defra. Total income from farming in England as a whole increased by 19% and regional increases range from 9% in the South West to 33% in the East Midlands.

Agriculture makes an important contribution to the national economy. It contributed 0.61% to the economy but contributions vary from region to region. At local level the contribution of agriculture to the local economy ranged from 0.17% in the South East to 1.26% in the South West. It contributes least to the local economy in London and the South East.

England can be divided geographically into livestock farming areas in the north and west and arable areas in the south and east. This is reflected in the fact that livestock output was most prominent in the South West and the North West and crops were predominant in the East of England.

In England as a whole, agriculture's contribution to the economy was £7,125m (0.61%) and employed 1.14% of the workforce.

Biggest Fall In Agricultural Productivity Since 1985

Total factor productivity figures from Defra suggest that the agricultural industry has seen a fall of 2.9% between 2011 and 2012 giving the lowest level since 2007 and it is the biggest single year fall since 1985. The poor levels of productivity reflect the poor weather conditions according to Defra.

The picture can be looked at over the longer period. Between 1986 and 2012 the volume of final output has remained fairly stable and the volume of all inputs and entrepreneurial labour has fallen by 19%. Looking at it that way total factor productivity has increased by 21%. This is he first Defra release to use 2010 as the base year for total factor productivity.

Agricultural Total Factor Productivity Lowest Since 2004

Total factor productivity in the agricultural industry has fallen by 3.2% between 2011 and 2012 to its lowest since 2004. It is the largest single year fall since 1985. The poor weather conditions in 2012 are said to be responsible. Looking at the longer period the output of the industry has remained more or less unchanged between 1986 and 2012 while the inputs and entrepreneurial labour fell by 19%. This had the effect of increasing productivity by 20%.

Farm Gate Prices Down In December

The prices farmers received for their products fell by 0.4% in December on November but is still 11.8% higher than last year. Farmers were also having to pay on average 3.2% more on the monthly comparison and 5.4% on the annual comparison for their goods and services. Main crop potatoes have almost doubled in price since December 2012 due to low yields and low quality. Cereal prices have grown by 10% from November and 38% on the annual comparison. Dessert apples' prices have increased by 9% on the month and 25% on the year. Sheep prices fell by 28% over the year due to higher volumes and cheap imports of sheep meat.

Lower Farm Incomes Expected In 2012-13

Provisional estimates for average farm business income for 2012-13 suggest that it will fall across the board due to the poor growing season and harvest. Higher output prices in the cropping sector are expected to only partially offset lower yields and quality. Higher costs are also expected to lower incomes especially in the livestock sector. The single payment was 10% lower on average than the previous year due to the strengthening of the pound against the euro.

Total Income From Farming Up Across The Country

The second estimate of agriculture in the English regions from Defra suggests that total income from all farming increased significantly in all NUTS1 regions in 2011. The North East had the largest increase with 38% and the East Midlands had the next largest increase with 33% on 2010. The smallest increases were in the North West and the West Midlands with a 20% increase in each.

Total income from farming has increased in all NUTS1 regions, in the medium term, between 2005 and 2011. The South East has seen increases of 364 to 464 and the North East 191 to 291. The smallest increases were in the East of England (224%) and the West Midlands (225%).

The relative importance of agriculture to each region can be seen in its share of regional gross value added (GVA) and the regional workforce. The greatest contribution to GVA in 2011 was made in the South West with 1.3% and the least in the South East with 0.19%. In England as a whole agriculture contributed 0.64% to GVA.

Agriculture made its greatest contribution to the regional workforce in the South West with 2.22% and the least in the South East with 0.5%. The industry contributed 1.1% to the workforce in England as a whole.

Agricultural Prices Down In October

In the Defra API outputs monthly series for October 2012 the total outputs index was 178.6 from 180.1 in September, a fall of 0.8% in the month but there was an increase of 8.7% over the year. In the inputs monthly series the index was 153 from 153.6 the previous month giving a -0.4% change in prices but an increase of 1.2% over the year. There was 0.7% fall in costs of goods and services currently consumed in production from 159.7 to 158.6 over the month.

The agricultural prices index (API) output prices are divided into major crops prices which increased 0.9% over the month giving an index of 201.7 (199.9=2011) and an increase of 0.9% (16.7%) and livestock and livestock products which increased to 162.3 (161.8) or 0.3% (2.5%). These prices reflect what farmers receive for their products.

Animal feed prices, which are a key indicator, showed a 6.3% change in the price of these inputs whereas prices for animal and animal products showed only a 2.5% change in the output price.

Input prices are divided into goods and services currently consumed (eg. fertiliser and seed) which had an index of 158.6 (159.7) or -0.7% (1.3%) and goods and services contributing to investment (eg. tractors and buildings) which had an index of 123.3 (123.1) an increase of 0.2% (0.6%). These are a reflection of the prices farmers have to pay for goods and services.

The outputs annual series index stood at 165.6 in 2011 (145.9 - 2010) with crop products at 152.3 (133.3) and livestock and livestock products at 154.7 (141.4). The inputs annual series stood at 151.2 in 2011 (135.6 - 2010) with goods and services currently consumed at 157.1 (139.1) and goods and services contributing to investment at 122.5 (118.9).

Farm Business Income Up By 15%

Average farm business income increased across all farm types in England in 2010-11 by 15% mainly due to higher prices for cereals, oilseed rape and milk.

Farm business income is the main income measure used in the Farm Accounts of England which is the most important publication from the Farm Business Survey. It comprises 4 different segments or cost centres: agriculture, agri-environment, diversification and the single payment scheme. The agriculture and Single Payment Scheme cost centres contribute about 40% each to total farm business income. Agri-environment and diversification contribute smaller average amounts.

Average farm business income per farm results by broad farm types shows that cereal farms income was £94,6000 and increased by 12% mainly due to increases from the oilseed rape crop partly offset by increases in costs for fertiliser and soil improvement. General cropping farms suffered a decrease of 10% to £100,900. Potato output was considerably lower due to a fall in prices. Mixed farms farm business income increased by 30% in 2011-12 to £66,000 due to improved prices in both livestock and cropping enterprises. Horticultural-type farms covering fruit, vegetables and non-edibles increased by 15% to £55,300 even though total output was 3% lower than 2011-12. Fall in outputs was affected by the cold weather.

On livestock farms dairy farms' farm business income was up over 30% to £86,700 in 2011-12. Milk prices were 12% higher than in 2010-11 at over 28p/litre with average production costs of 26.2p/litre and better prices for dairy beef also helped increase total farm business output. Higher costs fro concentrates offset the increase in income. Lowland grazing livestock farms increased their income by around 50% to £32,200, still low in comparison to other farms. LFA grazing livestock farms increased their farm business income by about 37% to £29,200. Average farm business income on specialist pig farms was down by 15% at £38,000 compared to 2010-11. Prices and output were higher but were offset by higher feed costs.

Many farm businesses are responding to the changes faced by agriculture in the economy by trying to increase their incomes by diversification into non-agricultural work of an entrepreneurial nature on or off the farm but using the farms resources. Over 50% of farms in England fit this definition and have some diversified activity. This figure has been more or less stable for 5 years. The main one has traditionally been letting out buildings for non-agricultural use. Outside of this diversified activity the proportion of farms with diversified activity falls to 27%. Diversified farm activity accounts for up to a quarter of total farm income for 30% of businesses. For 16% of businesses diversified income accounts for more than the rest of the farm business. The 29,500 farms diversifying generated £380m of diversified income. The half of all farms diversifying generated only 4% (£730m) of total farm business output of £16,360m. The largest enterprises by value of output are those involved in the processing and retailing of farm produce (£31,500) and tourist accomodation and catering (£21,300) compared with sport and recreation (£11,900).

Increase In Farmers Incomes In 2011

Total income from farming (TIFF) in 2011 was estimated to be £5,567m, up £1,084m on 2010 according to a second estimate of TIFF from Defra. Allowing for adjustments for inflation TIFF went up by £851m or 18%. It is the best performance by the agricultural industry since the mid-1990s. TIFF per annual work unit (AWU) of entrepreneurial labour was up by 16% to £30,000 in real terms. TIFF per AWU of entrepreneurial labour has, over time, performed better than TIFF due to a decline in the number of farmers.

Milk Prices Rise In April

The UK average farm gate price of milk excluding bonuses was 27.91p/litre, up 1.5p/l on April 2011 according to Defra. The butterfat content increased from 4.02% in April 2011 to 4.06% in 2012. The average protein content also increased from 3.22% to 3.26% over the same period.

Agricultural Productivity Up By 26% Since '80s

Statistics from Defra show that the total factor productivity of the agricultural industry has increased by 26% between 1986 and 2011. Final output volumes have remained relatively unchanged over the same period but the volume of all inputs fell by 19% overall though they have increased over the last 5 years. The largest increase is in plant protection products. Entrepreneurial labour has fallen by 6%.

Farming Incomes Increase By Over £1.3m

Total income from farming for 2011 was estimated to have reached £5,693m compared with 2010, an increase of £1,352m or 25%. The return per annual work unit of entrepreneurial labour is estimated to have been £30,900 in real terms, an increase of 24%. Looking at the longer term, 2011 represents the best performance of the UK agricultural industry since the mid-1990s. Gross value added at basic prices increased by £1,748m to £8,845m which more than offset the increase in intermediate consumption which rose by £1,321m to £14,806m.

Farm Gate Milk Price Decrease In November

The UK average price of a litre of milk in November 2011 was 29.3p, compared with 3.13p/l in November 2010. The average butterfat content was 4.17% and the average protein content was 3.33% compared with 4.11% and 3.36% respectively in 2010.

GDP Growth Unrevised At 0.5%

The most recent quarterly national accounts show that GDP rose by 0.5% in Q1 2011. In volume terms GDP rose by 1.4%. The household saving ratio fell from 5.1% to 4.6% while household disposable income fell by 0.8%. Agricultural output increased by 0.1%.

UK Livestock Slaughter Statistics For May

The key points in Defra's latest information on slaughterings of cattle, sheep and pigs for May 2011 are that at 170,000 there was a 4% increase in the number of UK prime cattle slaughterings over May 2010. Beef and veal were 7% up on May 2010 with 74,000 tonnes. Sheep slaughterings were also 4% up on last year at 727,000 head. Mutton and lamb were 4% up with 17,000 tonnes. Pigs increased 3% to 718,000 tonnes compared to May 2010. Pigmeat production was 59,000 tonnes, an increase of 3% on May last year.

API For April 2011

The agricultural prices index for April published by Defra for prices received by producers for agricultural products for the total of all products in the monthly series in April 2011 was 166.4. To put this index number into some kind of context the index number highest since January 2010 was in March 2011 (last month) at 167.3 and the lowest was in April 2010 with 139.1. The index for purchase prices paid by producers for agricultural inputs in the monthly series for April 2011 was 148.7. The highest index since January 2010 was in January 2011 at 150.0 and January and March were lowest at 130.7.

Mutton And Lamb Up 5%

The latest monthly information on livestock slaughterings of cattle, sheep and pigs from Defra shows that prime cattle slaughterings were up 1% in April 2011 on April 2010 at 204,000 tonnes. Beef and veal production was 86,000 tonnes also 1% up on last year. Sheep and pigs were 4% up on last year. Mutton and lamb production was up 5% at 23,000 tonnes and pigmeat production was up 4% at 72,000 tonnes.