Livestock Numbers Increase in 2013

Livestock numbers from the December Survey show that there were 5.3m cattle and calves in England between December 2012 and December 2013, an increase of 0.3% according to Defra. The dairy herd increased by 1.5% to 1.1m but the beef herd continued to decrease by 2.6% to 699,000 during 2013.

There were 3.6m pigs in England in December 2013 an increase of 5.5% since December 2012. Fattening pigs increased by 7% to 3.2m while breeding pigs decreased by 4.2% to 411,000 in December 2013.

The total number of sheep and lambs in England between December 2012 and December 2013 increased by 1.6% to 10.9m. The female breeding stock increased by 6.3% to 6.9m. Other sheep and lambs fell by 5.7% to 4m against the upward trend.

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.

Agriculture Sees Fall in API in August

The agricultural prices index published by Defra for all outputs fell by 2.5% in August but remains 0.6% higher than last year. The API for all inputs fell by 0.5% but is still 1% higher than last year.

All of the output price categories fell with the exception of milk. Cereals fell 9.7% and are 13% lower than last year, oilseed rape fell 8% and is 15% down on last year, potatoes are 8.8% lower than last year and vegetable prices are down 5.1% and 6% on last year. Livestock prices are 4% down in August but are still 5% higher than last year. Milk has seen a 2.2% increase in price in August and are 20% higher than last year.

On the input side animal feed has fallen in price by 7.2% reflecting falling prices in cereal and industrial crops. Motor fuel price increases of 2.7% have put them 2.3% up on last year.

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).

Cereals Farmers See Big Rise In Incomes

The Farm Business Survey results show that income figures have substantially increased in the year ending February 2011. In 2010/11, incomes increased on arable and mixed farms and a smaller increase on dairy farms. However, average incomes fell on beef, sheep and pig farms. Significant variations in incomes exist within the sectors.

Mixed farms saw an increase of 57% while cereals farms increased their incomes by 107%. General cropping farms increases were 80%. The average increase across all types was 33%. In real terms it means a 97% increase for cereal farms, 72% for general cropping farms and a 49% increase for mixed farms.

Over half of cereal, general cropping and dairy farms had an income over £50,000 and a third over £75,000 but more than 15% of LFA and lowland grazing farms didn't make any profit at all and approximately 60% had incomes of less than £20,000. Different farms are influenced by a variety of different factors including size, location and soil type. The variation in incomes also reflects the differences in production costs.

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.

Defra Releases December Survey Results

Defra recently released statistics from the December Survey as at 2010 giving details of crops and pigs and population estimates of cattle and sheep.

The wheat cropping area remained stable again last year decreasing by 0.5% to 1.8m hectares. Winter oilseed rape areas increased by 12% to 655,000 hectares and the winter barley area decreased by 8.5% to 310,000 hectares. The area of arable land to be left out of production in 2010-11 increased by 9.3% and is 248,000 hectares. The area may change depending on factors like market conditions and the weather. The amount of hay produced in 2010 was 2m tonnes and the grass silage produced amounted to 20.5m tonnes. Silage from other crops totalled 5m tonnes.

On the livestock side, the total number of cattle and calves decreased by 1% to 5.4m. Pigs decreased in number by 1.7% from 3.6m to 3.5m and there were 415,000 breeding pigs. Sheep and lambs remained stable at 9.9m.

Farm Business Income 2009/10

Average farm business income (net profit) per farm of all types annual percentage change was down 15% at current prices at £43,400 and in real terms at 2009/10 prices they were also down 15%. Cereals were down 34% at £46,000 and general cropping down 31% on 2008/9 and 2007/8 at £66,000. Dairying fell by 19% to £56,100. Net farm income (return to farmer) for all types was down by 24% at current prices and in real terms at 2009/10 prices at £31,500. Cereals saw a 47% fall to £27,900 and general cropping a 40% fall to £48,900. Dairying fell 32% at current prices and 31% in real terms to £40,500. Cash income (revenue less expenses) however increased by 4% across all types of farming to £63,400. Cereals increased cash income by 4% to £78,700, general cropping fell 15% to £104,300, lowland grazing livestock increased by 20% to £27,900, LFA grazing livestock by 24% to £29,300 specialst pigs by 19% to £86,300 and mixed farming by 20% to £55,300 in 2009/10 over 2008/9. Dairying cash income fell 4% to £75,000 at current prices.

Agriculture's June Survey 2010 Provisional Results

The latest June Survey statistics from Defra show the provisional estimates for land use, crop areas and livestock numbers on agricultural holdings on June 1 2010. They give a good idea of trends but they are provisional and could be subject to amendment at a later date.

The agricultural land area in 2010 was 9.3m hectares. The area on agricultural holdings remained unchanged at 8.9m hectares. Common rough grazing remained unchanged at 428,000 hectares. The arable area also remained more or less unchanged at slightly under 3.8m hectares while to total cropping area increased slightly to 3,915,000 hectares from 3,902,000 hectares in 2009 (revised). All regions increased their wheat area.

The number of cattle increased by 1% to 5.5 million. The total breeding herd was up by 0.9% to 1,916,000. There were 756,000 cattle in the beef herd and 1,160,000 in the dairy breeding herd in 2010.

The number of breeding pigs increased to by 1.4% to 427,000 from 421,000. The number of fattening pigs decreased by 2% to 3.2 million. The female breeding herd numbered 351,000 in 2010 and other breeding pigs increased by 10.7% to 76,000 in 2010 which included 15,000 boars. The total number of pigs decreased by 1.6% to 3,630,000.

The female breeding flock remained unchanged at 6.4 million. The fall in the number of lambs from 7.49 million to 7.24 million was a factor in reducing the total number of sheep to 14.1 million from 14.4 million in 2009.

Agricultural Inputs Prices Rise Again

The index of prices received by producers for all agricultural products returned to its May level of 137.5 from the June level of 137.9 in July 2010. Crop products increased from 138.6 to 139.4 but animals and animal products fell from 137.9 to 137.5. Within crop products, the cereals index increased from 142.5 to 144.6 and industrial crops from 136.5 to 157.9. Fresh vegetables fell to 127.9 from 131.1. These prices exclude subsidies.

Prices received for cereals fell again in 2009 from 207.1 in 2008 to 150.1 and industrial crops from 232.9 to 183.4 respectively. Farm gate prices for fresh vegetables also fell in 2009 from 117.5 to 113.9. The index for the total for all products fell from 143.3 to 135.8 in 2009.

The index of prices paid by producers for agricultural inputs shows that the prices paid for seed fell from 101.5 to 99.6 in Jul 2009, fertilisers and soil improvers fell to 244.3 from 245.7. Plant protection products remained unchanged at 99.9. The animal feedingstuffs index increased from 156.1 to 159.9. The overall index for agricultural inputs increased for the fifth consecutive month from 137.2 to 139.7 in July 2010.

The annual series shows that the overall index for prices paid by producers for agricultural inputs fell from 139.6 in 2008 to 132.9 in 2009.

Producer Prices Index Of Agricultural Products

The producer prices index of agricultural products for cereals was 114.9 in February 2010 down from 116.1 in January. The annual series index of cereals in 2009 was 150.1 down from 207.1 in 2008 an unusually high index in the series since 2003. Industrial crops for February increased from 123.8 to 124.6 and vegetables decreased from 127.3 to 121.6. Animals and animal products decreased from 143.2 to 140.9. The all products total index decreased slightly from 137.4 to 136.6 in February. The total of all products index for 2009 decreased from 143.3 to 135.5.

The purchase prices index of agricultural inputs includes seeds, crop protection products and fertilizers as well as feedingstuffs and energy. Seeds were unchanged at 104.5 in February, sprays were also unchanged at 99.9 but the fertilizer index increased from 209.8 in January to 214.7 in February 2010. The index of feedingstuffs increased from 154.3 to 156.2 over the month between January and February. The energy and lubricants index decreased from 152.8 to 149.1. The maintenance and repair of plant index was 125.3 from 125.4, of buildings 125.8 from 123.8, veterinary services went from 105.2 from 105.0. Cultivation and harvesting machinery, tractors and other machinery and equipment increased from 125.0 to 125.1. Buildings increased from 122.1 to 123.6. The index of all means for agricultural production for February 2010 went up to 122.2 from 121.7 in January and for 2009 the index was down to 133.1 from the sharp increase to 139.6 in 2008 from 113.8 in 2007.

Farm Business Management Practices 2007-8

More results from the Farm Business Practices survey of 2007-08 have been published by Defra. The main highlights are given on the first page. They show that the more educated farmers are more likely to perform better. A lot of farmers have no qualifications and do not practice basic business management skills. LFA grazing livestock farmers are less likely to have had any further/higher education. Arable farmers are more likely to have had a further/higher education and along with dairy farmers are more likely to consider improvements. Skills used by the top performers include risk management, IT, business planning, marketing and management accounting. Of these skills, 72% of high performers are likely to have at least 4 key business skills compared to 40% of low performers.

The measures of economic performance for the farms is the ratio between economic output and inputs and are divided into low, medium and high performance percentiles. The low performers make up the bottom 25%, medium the middle 50% and high the top 25%.

The results show that 60% of farmers have a further or higher educational qualification of some kind. Fewer, about 20%, have had business management training. Farmers with further or higher education or business management training are more likely to be top performers. At 29% it is more than in the 25% high performance percentile. More than 50% of LFA grazing livestock farmers have no qualifications at all. Nearly 50% of dairy farmers have a diploma/certificate in agriculture. Cereals farmers are more likely to have degree in agriculture and/or a business management qualification. There were a lot of farmers who had considered education and training but decided against it. The main reason given was than they were not sure of it's benefits to the business.

As far as skills and knowledge are concerned, farmers with skills and knowledge of management accounting are more likely to be high performers. Farmers not applying management accounting knowledge and skills (49%) are more likely to be low performers. Some farmers use more than one skill. The main management accounting skill used is reviewing the profit and loss account. Cereal farms are more likely to use all skills (except benchmarking) included in the survey. LFA grazing livestock farmers are least likely to use any management accounting skills.

Farmers using marketing skills are more likely to be high performers (32%). It is the same with IT (28%). Cereal farmers are most likely to have computing equipment. The least likely are the LFA grazing livestock farmers with up to 25% having no business computer. Some have computer equipment but do not use it for business. Of those who do not have a computer or do not use it for business, 45% are low performers and 20% are high performers. Broadband is widespread particular among cereal farmers and they are more likely to have computer literate business users.

Most farms don't acknowledge any knowledge or skills gap. Farms that do recognize a skills or knowledge gap are more likely to be high performers. The highest proportion were the LFA grazing livestock farmers (>70%) the lowest the cereal farmers (>50%). A risk management strategy was used by 70% of farms. A range of crops or enterprises was the most common. The farms with a risk management strategy were more likely to be high performers.

The uptake of technical advice seems to be an important factor in running farms with 98% of high performers and 93% of low performers saying they take technical advice. Business skills seem to give a certain edge. Diversification seems to require and provide more skills.

Formal or informal business plans were made by farms in all performance groups. The most common method used was to measure the farm's performance by the annual profit and loss account. The results showed that those that do not plan ahead are more likely to be low performers.

The survey also gives profiles of high and low performers who carry out at least one business management practice skill. The most common business management practice skills used by the high performance percentile include management accounting, IT, business planning and risk management. Of the high performers, 72% are using 4 key business management practice skills whereas only 40% of low performers are carrying them out. Of the high performers only 1% are using no skills whereas for low performers the figure is 11%. The high business performers have an average of £574/hectare farm business income and the low performers -£78/hectare.

The distribution of farms beween high and low performance showed that 50% of cereal farms were high performers and 19% of general croppers. Only 6% of cereal farms were low performers and 5% of general croppers. The low performers included lowland grazing livestock farms with 37% and LFA grazing livestock with 20%.

Earlier results published last March show that 24% of low performers did not identify any of the management accounting practices compared with 9% of medium and 8% of high performers. Most farmers with further or higher educational qualifications also had a diploma/certificate in an agricultural or related subject. The number of farmers with a diploma/certificate in agriculture have an inverse relationship with age group.

The survey was based on a sample of around 1,900 farm businesses from all regions and types of farming. The sample for management practices was reduced to 1,450 farm businesses but it remains a representative sample.

Fall In Farm Incomes In 2009

Farm incomes are estimated to have fallen in 2009 according to the most recent statistics from Defra. Total income from farming (TIFF) fell by 5.7% in 2009 to £4.07bn. There was a decrease in the value of output, a fall in input costs and an increase in the Single Payment. Farm business income (FBI) on specialist pig, specialist poultry, LFA and lowland grazing livestock farms is expected to increase in 2009/10. On general cropping and specialist cereal farms FBI is expected to fall.

The value of output fell by 3.2%, though there was a significant variation between sectors. Cereals (-25%), oilseeds (-23%), potatoes (-16%) and milk (-9.7%) fell in value, whereas cattle (6.4%), sheep (21%) and pigs (17%) increased in value. The total value of output at market prices fell by 3.1% to £19.3bn. The value of intermediate consumption, items like maintenance, services, feed, fuel, fertilisers and sprays, fell 1.1% and the Gross Value Added (GVA) for the industry fell 6.2% to £7.1bn. Input costs fell by 2.2%. The cost of fuel and animal feed fell by 17% and 7.3% respectively but that was partly offset by increases in other costs.

Farm Incomes Up By 25%

Total income from farming is estimated to have risen by 25% in real terms. The causes were a fall in the value of agricultural outputs of 2.5% offset by a greater fall in input costs of 4.9% and an increase in Single Payment Scheme payments of 17%. Total income is expected to fall by 8.8% in 2010.

TIFF per full-time person equivalent is expected to rise in 2009 by 26% as a result of the increase in TIFF and a fall in the volume of agricultural labour input and is expected to fall by 8% in 2010.

Agricultural output is expected to have declined by 2.8% in 2009. The main factors are a fall in the value of crop production partly offset by an increase in the value of livestock production. The fall in crop values was driven by a fall in wheat, barley, oilseed rape and potato prices partly offset by an increase in the value of sugar beet yields which are expected to be high and the area of forage crops is expected to increase. Increases in cattle, sheep and pig production and an increase in capital formation in livestock ofsetting a fall in milk production value explain the increase in the value of livestock production.

Output is expected to decline further in 2010 to be only partly offset by declining input costs and a rise in payments. These estimations are subject to very broad margins of uncertainty due to the nature of agriculture.

Agricultural Prices Index For September 2009

The agricultural producer and purchase prices indices for 2008-9 to September 2009 were published by DEFRA last week. The survey includes producer price indices for cereals, industrial crops, fresh fruit and vegetables, seeds, flowers and plants and other crop products as well as for animals and animal products. The survey includes purchase price indices for seeds, energy and lubricants, plant protection products and animal feedingstuffs. It also includes costs for the maintenance and repair of plant and buildings, veterinary services, costs of other goods and services, machinery, plant and other equipment and buildings. The totals for all products and all means of agricultural production are also included in the survey.

The indices for all products were 143.3 for 2008 from 118.8 for 2007 and 130.2 in September 2009 from 130.8 in August and the indices for all the means of agricultural production were 130 for September 2009 from 131.1 in August and 139.7 for 2008 from 113.8 in 2007 (2005 = 100).

June Survey Results From DEFRA

The preliminary estimates of the June Agricultural and Horticultural Survey of the UK for 2009 have been published by DEFRA. The final results will be published later in the year but the preliminary results still give a good estimation of trends in land use, crop areas and livestock.

Agricultural land areas in the UK have increased by 2% since June 2008 and the total croppable area is now 6.2 million hectares. Of the 36% of agricultural land that is considered croppable about half is under cereals, another 20% is temporary grassland. Unused arable land, including bare fallow and GAEC12 land, has increased by 25% to 244,000 hectares.

Arable returns show that the estimated total cereal cropping area in the UK has decreased by 5% to 3.1 million hectares since last year. Wheat accounts for 1.8 million hectares or 70% of cereals, 14% lower than last year and barley, which accounts for 1.15 million hectares, is 12% higher at 26%. The area of land under potatoes has increased again this year by 3.4% to 1.48 million hectares. Oilseeds continue to decrease in area, now at 6.02 million hectares, a 3.4% change on last year. Other field crops have shown a 21.3% increase in area to 6.39 million hectares largely due to large increases in the area of field beans, peas and maize.

Pease and beans have decreased in area to 403,000 hectares but all other vegetables and salads have increased in total area to 814,000 hectares.

National livestock herd sizes of cattle, sheep and pigs have decreased since June 2008. The total number of cattle and calves has decreased by 0.8% to slightly more than 10 million, the breeding herd has decreased by 3% to 3.5 million due to decreases of 3% in both the beef herd and in the dairy herd to 1.6 and 1.9 million respectively. Pigs decreased by 2% from June 2008 to 4.6 million. Breeding sows numbered 440,000, up 5%. The total number of sheep and lambs decreased by 4% to 31.8 million. There were 14.8 million breeding ewes, a decrease of 5% and other sheep and lambs decreased by 3% to 17 million.

Cattle, Sheep And Pigs

The laws and principles discovered and developed by Mendel have been applied to animal breeding. The most controversial example in recent years of the kind of perversion of Mendel's Laws we occasionally come across being Dolly the Sheep. Cloning is not a new practice. In plant breeding clones have been developed and used for decades in developing new strains of cereals and other plants. It does not go without question. There are ethical questions about the biotechnology that is applied to plants and animals and humans.

The ethical debates about livestock farming and developments in husbandry have been going on for years. Animal welfare is a great concern for good farmers and animal lovers. Housing concerns have been expressed about farm livestock not least in the case of veal crates. Keeping animals in cramped and uncomfortable conditions is cruel and it is bad husbandry. It can be very stressful for the animals involved. It lowers the quality of whatever life they have and lowers their market value. Only the best husbandry practices are recommended for keeping farm livestock.

Some of the ethical questions argued about in agriculture have eventually come up in wider society in other contexts. Some agricultural practices are passed on to practitioners in other branches of science and the principles applied to humans. The most well known are things like artificial insemination, embryonic transfer, surrogacy and cloning. There are many more. It is a serious debate about the future of farming and the future of society as a whole as what is practiced in one is occassionally practiced in the other. Agriculture sometimes seems like a laboratory for experiments in social engineering. Monkeys and mice, cattle, sheep and pigs.