For many, September means a fresh start. Harvest is mostly complete for another year and plans can be made for the following 12 months. MPs return to Westminster following Summer Recess and this year a new cohort are no doubt looking forward to making their presence known. Time will tell what a Labour government will mean for agriculture, but with news of a Defra underspend causing consternation and the October Budget on the horizon, many are waiting with bated breath to learn what the sector can expect.
Agriculture budget underspend
The government confirmed a £358 million underspend of the agriculture budget spanning the past three years, an admission that has been branded a “kick in the teeth” for farmers. Defra released findings from the Farming and Countryside Programme (FCP) annual report which revealed an underspend of £130 million in 2023-2024, £103 million in 2022-2023 and £125 million in 2021-2022. NFU President Tom Bradshaw said: “Let’s be clear, this underspend hasn’t happened because the investment isn’t needed. It’s happened because the schemes to replace the Basic Payment Scheme (BPS) have not been completed in time and there are still many gaps and questions unanswered. We have flagged problems with the new Environmental Land Management (ELM) schemes from day one and, despite some improvements, there is a still big gap in spending as the money saved from the continued BPS reductions has sat gathering dust.”
Bluetongue update
The total number of farms affected by the bluetongue virus in England has reached almost fifty. In total, 46 farms have been affected since the first case was confirmed in late August. Cases at present are mostly in the East of England, specifically Norfolk, Suffolk and Essex, although East Yorkshire, Lincolnshire and Kent have also reported cases. At the end of August the UK Chief Veterinary Officer declared bluetongue restricted zones across affected regions to reduce the risk of further cases occurring. “Following an increased number of bluetongue cases, we have declared a restricted zone across Suffolk and Norfolk. This means all keepers in these regions must urgently act now to both prevent the disease spreading to their herds and any further. Farmers are urged not to move animals within the zone unless it is absolutely necessary. We have not taken this action lightly and we are clear that farmers and their vets must remain vigilant and report any suspicions to APHA immediately.”
One of ‘worst harvests on record’
Provisional data suggests this year’s harvest will be breaking records for all the wrong reasons. Analysis indicates that England is heading for one of its worst harvests on record, following record breaking rain last winter that has proved detrimental to yields, in particular the wheat harvest which has been reduced by almost a fifth. Analysis of provisional data from Defra and AHDB by the Energy & Climate Intelligence Unit for English crop areas for wheat, winter and spring barley, oats and oilseed rape predicts 2024 is set to be one of the worst three harvests since detailed records began in 1983, just behind 2020 and 2001.
Sheep and cattle populations at record low
Sheep and cattle populations in England are at a record low, figures reveal. Defra’s annual livestock survey revealed that, as of June 2024, the English sheep flock declined by 4.3% year-on-year, or a reduction of 620,000. “The Defra survey revealed a contraction in the total cattle population to 5.0 million head, 2% below the previous year and the lowest level in England recorded in the June survey,” says AHDB Analyst (Livestock) Annabel Twinberrow. “Pressure on margins and the recent robust beef prices are likely to have incentivised some culling. The breeding herd fell by 2.2%, to total 1.7 million head. The dairy breeding herd saw a marginal decline of 0.6%. The beef breeding herd drove the decline, having fallen by 5.1%, accounting for 32,000 head. We anticipate these trends to continue from recent analysis.”
Carter Jonas sells first BNG unit
The Devana Centre for Environmental Recovery has become one of the first habitat banks in England to be registered on the national biodiversity gain sites register. Supported by Carter Jonas, the site in Cambridgeshire aims to deliver environmental change at a permanent landscape scale. Owned and managed by The Evergreen Fund, an environmental impact fund founded by Ground Control, the site goes above and beyond the statutory requirements for BNG, conducting in-depth surveys into soil and vegetative carbon stocks as well as monitoring species and pollinator abundance and diversity. Mark Russell, partner at Carter Jonas says: “Carter Jonas is proud to support this project and is delighted to announce that a number of BNG sales have already been completed, with many more in the process of being agreed. Carter Jonas looks forward to continuing to support this project by enabling further innovations such as our nationally unique fractional pricing model.”
Rural View
Our thoughts and insights on the key issues and opportunities within farming and rural businesses.