"Leaving the EU can be an opportunity for businesses across the countryside"

Agriculture looks worryingly neglected in North Somerset MP Liam Fox’s department created to win crucial trade deals following Brexit.

His new Department for International Trade has now announced all his ministers but none of their portfolios include a direct reference to agriculture.

The Country Land and Business Association has raised the alarm, pointing out that failure to secure strong trade opportunities for agricultural products will put UK food security and the environment at risk.

The worry is that agriculture will be treated as a low priority or may even be excluded from international trade negotiations.

In response the CLA has published a briefing which explores the opportunities for agriculture and forestry trade outside the EU and sets out the risks if trade declines substantially following Brexit.

CLA director general Helen Woolley said: "Leaving the EU can be an opportunity for businesses across the countryside. We have great entrepreneurs and great products. If the conditions are right we will thrive. But those conditions will not come about without careful planning and tough negotiations.

"Nowhere is that more the case than in agriculture. It is notoriously difficult to establish open trade deals for farming products. It is seriously alarming that no government minister has been given specific responsibility to deliver it.

“We now seek urgent reassurance that the government will deliver for our farmers and rural producers. We expect the Department for International Trade to start working together with us straight away and this is a terrible start.

“There are serious consequences if we don’t get this right. We could see food prices rising and the nation’s food security may be compromised. The environment could start to suffer and many farms and manufacturers could go out of business.

“Farmers and other food producers want to provide the country with a safe, secure supply of food. Land managers want to carry on their good work improving nature and wildlife, helping to tackle climate change and managing the UK’s distinctive landscapes.

“This is why it is so important that ministers assure us all that securing the best deal for food and farming will be a high priority and not an afterthought in their trade negotiations.”

The CLA briefing sets out the five objectives for a trade policy that will allow UK farmers and rural businesses to compete on an international platform.  These include:

•    Opening new markets
•    Growing existing markets at home and abroad
•    Delivering the best deals for UK consumers
•    Equipping businesses to compete
•    Improving farmer resilience

However, I doubt many of these goals will be achieved if there is no high level representation fighting for British agriculture in the international trade negotiations.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Wear sunscreen

The NHS “Cover Up, Mate” message particularly applies to farmers here in the West Country.
It is a rough, tough industry but workers who spend long periods of time outdoors are urged to protect themselves against the sun this summer because of the dramatic increase in skin cancer across the south of England.

Farmers, builders, sportsmen and gardeners are all being targeted by NHS England South’s Cover Up, Mate campaign because of their prolonged exposure to the sun – and men are a particular focus because research indicates that they are much less likely than women to slap on the sunscreen.

Latest statistics from Cancer Research UK show that since the late 1970s, skin cancer incidence rates have more than quadrupled in Britain. The increase is larger in the male population where rates have increased by 544 per cent, compared to 263 per cent in women.

Public Health England say that in the South West there was a 31.9 per cent rise in incidence of malignant melanoma between 2009 and 2014, from 1,444 cases to 1,906 cases. There was also a 14.5 per cent rise in mortality from malignant melanoma, from 248 deaths in 2009 to 284 deaths in 2014.

NHS England South West medical director Caroline Gamlin said: “Being outdoors is clearly crucial for farmers, builders, gardeners, Post Office workers and others, but there are simple steps can be taken to lower the risk of skin cancer and be sun safe.

“Men in particular need to take much more care. They need to use at least factor 15 sunscreen and apply it generously on all exposed skin – not forgetting their necks, ears and bald patches.”

National Farmers Union South West Regional Board chairman, James Small, who farms on Mendip, said: “Working in the rough, tough world of farming, we often want to brush things off and just get on with the job, but there are times when that kind of resilience can come back and bite you and this is one of those.

“We owe it to ourselves and our families to take the risk of skin cancer seriously and above all if we are bothered by something to not dismiss it, but get it checked out.”

Top sun safe tips include:
•    Use at least factor 15 sunscreen in the sun and plenty of it

•    Apply sunscreen to all exposed skin – don’t forget your neck and ears and your head if you have thinning or no hair

•    Wear sunglasses and a hat

•    Take particular care if have fair skin, moles or freckles, red or fair hair, or light-coloured eyes.

So as harvest is just getting under way and hopefully the sun will be shining throughout the rest of the summer, farmers here in the South West need to take heed of this health hazard and I for one will be dusting off my hat to cover my head where the skin appears to be relentlessly healing over my hair.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Hard reality has kicked in over the impact of Brexit on our farmers

It is now critical that the deep divisions of the past are healed as quickly as possible and all our efforts are focussed on negotiating the best deal possible for our exit from the EU in parallel with building relationships with the rest of the world. This will be no mean feat and in the rural context it requires focus on the following areas very quickly.

Trade - We need to secure tariff-free access to the EU for all UK agricultural and other products of our rural economy. We also need to replace all trade agreements that now exist between the EU and other nations, and attempt to develop new opportunities worldwide. We must protect ourselves against cheap imports from outside the EU, particularly where standards of production do not match our own.

Agricultural support – The Common Agricultural Policy payments which farmers now receive from the EU will be phased out. They represent approximately 55 per cent of an average farmer’s income and even if they are replaced by UK-based support the timing and nature of this support needs urgent clarification.  Allied to this we need urgent clarification on the government’s UK Agricultural and Land Use Policy which has been largely devolved to the EU. This will need to be in place before we leave the EU because the agricultural industry cannot cope with a pregnant pause between the abolition of one system and the introduction of another, which in my experience often happens.

Labour – We must ensure that farmers can continue to employ the critically important labour force that is drawn predominately from EU member states. About 65 per cent of agricultural workers are currently non-UK EU citizens and this rises to 80 per cent for seasonal workers. This workforce cannot be replaced by UK citizens and its loss would have a profound impact on many farms.

It will be a huge task to sort out this short rural wish list alongside all the other wider ramifications that this vote will have on our economy and society at large.

To achieve this our country will need a leadership team which can unite a deeply divided society at home and at the same time fight tirelessly for our best interests abroad.  It remains to be seen whether such a leadership team exists among the Brexiteers who have brought us to the brink of this brave new world.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

The Brexit debate at the Bath and West Show

Whether you are in or out the Bath and West Show was the place for extremely high calibre debate on the issue of Brexit.  The show kicked off with the Country Land and Business Association breakfast where four South West MPs passionately argued their respective cases.

The debate was introduced by CLA deputy Tim Breitmeyer who said: “We face a defining moment in history – it will shape our future and our children’s future.”

With those words still ringing in our ears Neil Parrish, MP for Tiverton and former South West MEP spoke from the heart on why he believed leaving the EU would be detrimental for British agriculture in particular.
From his experience as an MEP, where he chaired the committee on Agriculture and Rural Development, he explained that compared to this country, agriculture is still regarded as a very important industry throughout the rest of the EU.  Consequently he believed that UK farming interests would be better protected within the EU.

North East Somerset MP Jacob Rees-Mogg responded with an amusing and eloquent speech focusing on higher level sovereignty issues and the undemocratic nature of the EU.  He proffered an intellectually rigorous argument why he felt the UK would be better off out of the EU, taking back control of its own laws under a democratically elected UK government.

Then Farming Minister George Eustice summed up for the Brexiteers.  His opinions have obviously been influenced to a degree by his frustration of having to deal with the implementation of EU rules in his role at DEFRA.  

He also emphasised that the government would support farmers in a post Brexit world, although his reference to the Environment Agency and RSPCA being two of the organisations earmarked to help run the domestic schemes did raise eyebrows.   

Rebecca Pow, MP for Taunton, then summed up for the Remain supporters, emphasising some of the important benefits that have come out of the EU such as environmental legislation as well as the huge benefits of free access to the biggest single market, the withdrawal from which she argued could have a devastating effect on the trade of certain agricultural produce such as British lamb.

I am not sure whether many in the audience had their opinions swayed by this first class debate but if we do vote to leave on June 23 it would certainly be fascinating to have those same speakers back in five or ten years to review the consequences of what actually does happen.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Visit us at The Bath and West Show

The arrival of Rupert Cox as chief executive of the Royal Bath and West Society has proved most welcome.

On taking charge in January last year Rupert said: “Who would have thought that when I started stewarding in the sheep section of the Bath and West Show as a teenager some 35 years ago, that I would return to lead this iconic and highly regarded institution?”

Who indeed? But the show is now benefitting from the older Rupert’s considerable business experience, wealth of contacts, love of the countryside and likeable personality.

Rupert also comes from an agricultural background and I am delighted to see that under his leadership the Bath and West has regained more of its agricultural show character while enhancing its wider appeal for the whole family.

It offers consumers a rare opportunity to meet the producers of the food they eat – and increase their knowledge of today’s farming industry.

Our farmers need the public’s understanding and support, especially when so many are struggling with commodity prices below the cost of production and the disturbing failure of the Basic Payment Scheme to pay farmers their due in time and without a scary number of errors.

So I am pleased that this year’s Bath and West Show will feature a new, dedicated food and drink area showcasing some of the UK’s finest producers, running in conjunction with the British Cheese Awards and the British Cider Championships.

Visitors will also see more than 4,500 livestock and 2,000 horses, sheep shearing and a display of farming machinery from the past to the latest farming technology.

The Bath and West is the only four-day royal show in the country, with a history dating back to 1852.

This year its evolution continues and 2016 promises to be a show of transformation with changes to both features and layout.

One innovation comes courtesy of Michael Eavis, president of the Royal Bath and West of England Society, and perhaps better known as the founder of the nearby Glastonbury Festival.

Unsurprisingly, Mr Eavis’s addition to the show is a new music area with him sourcing the acts. Music will take place throughout the day and into the early evening, bringing a festival feel to the showground.

My firm, Carter Jonas, will be in the CLA stand at the show and we will be pleased to see you there.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Supermarket contracts

I came away from the Andersons farm business consultants’ annual seminar on the outlook for UK agriculture with the gloomy message that things are very difficult for most sectors but most worrying is the plight of our dairy farmers.

Andersons predict little prospect of improvement for at least another year as milk prices continue to fall at an alarming rate for the 80 per cent of dairy farmers not on “supermarket-aligned contracts”.  

Some of these farmers are lucky that for one reason or another they have been able to secure one of the supermarket contracts where they are effectively paid a milk price related to the cost of production rather than one based on the market price.  

As a consequence the supermarket contracts are offering about 30p per litre but the other 80 per cent of farmers are receiving between 20 and 24p. The milk price being paid to these farmers is influenced by world milk commodity markets where supply exceeds demand.  

Of course the market will one day right itself but not before the fundamentals have rebalanced and that will inevitably mean yet more dairy farmers having to leave the industry.

This depressing picture was reinforced by a leading dairy analyst, Chris Walkland at an NFU conference in Birmingham where he warned of a “spring tsunami of milk bringing more price pain” and said: “It is going to be pretty horrendous over the next three months.”

Walkland went on to predict the spot price for milk is likely to drop to around 10p per litre later this spring/early summer and as a result the total income for milk in April, May and June this year is predicted to be down by approaching 40 per cent on the peak seen only two years ago.

So why would anyone want to continue dairy farming at all? The answer is that some farmers are still making money, particularly those on the supermarket contracts and if you look back over say five years most dairy farmers will have seen good profits at times. 

And this is perhaps how dairy farmers need to budget, looking at five years rather than just one year but at the same time recognising that the current crisis has to be survived.  If that is not possible, then difficult decisions need to be made sooner rather than later because milk prices are unlikely to fundamentally improve for at least a year.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Challenging times for farmers

In today’s challenging times farmers can feel locked in a very lonely place.  As the losses mount there may seem to be no obvious route out of the situation and discussing this with close family or friends might not be easy.

But it is often worth discussing your worries with someone you trust who also has an understanding of the farming industry.  Whether that is your accountant, farm consultant or land agent doesn’t really matter. The important thing is to get a fresh perspective on your business because the answers may be staring you in the face but for one reason or other are difficult to address.

Probably the first thing you need is to get a clear understanding of your fixed and variable costs so you can start to benchmark yourself against industry standards and this may help to identify where the issues lie.  

You might for example identify that you have high machinery costs which may indicate you need to consider running the farm in a different way, perhaps selling some machinery and employing contractors to carry out work you have traditionally done yourself.  This could also lead to the possibility of reducing your labour requirements which could either release family labour to earn money off the farm or simply cut your employed labour.

Or you may identify high finance costs are a problem and restructuring your debt may be a possibility.  If this is the case don’t be afraid of speaking to your bank manager.  Most of them are pleased to hear from borrowers looking to take proactive action to address difficult times.  Extending the length of a loan to reduce the level of capital repayments or paying interest only for a couple of years may help the farm through a short term cash flow problem.

These are just a few examples of things that you may identify if you take the time to look at your business closely and it often needs a trusted third party to ask you those difficult questions that will make a difference.  

The easiest thing to do is nothing, but if you want your business to prosper in the long term, carrying on doing the same as you have done for decades is rarely the answer. 

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk

Farmers, Basic Payment Scheme and fraudsters

Many farmers now receiving their Basic Payment Scheme money are being targeted by fraudsters.

Getting to know a few of the tricks the criminals use can make all the difference and I set out below a few useful tips to counter the threat.

Farmers are often targeted through phone calls or emails from individuals who claim to be from the customer’s bank, a business customer, or even someone in authority from within their business. The aim is to trick you into making payments, or for you to allow them to access your systems so they – the fraudsters – can collect your money.

Steps you can take to help protect yourself from the fraudsters include:

Validate requests: You should never receive a phone call from someone asking you to make a payment. If you do, independently source the contact details of the person they claim to be. Similarly, if you receive an email asking for payment or notifying you of a change in bank details, get in touch with a contact you know using independently sourced details and check the request was genuine. Email addresses can be impersonated and made to look like they’re from a genuine contact.

Watch out for impersonators: Sometimes a fraudster might attempt to impersonate someone within your business, or a trusted contact such as a bank. Take the time to make sure callers are who they say they are and be wary of caller displays on your phone. Fraudsters can and do use systems to display a number that may be known to you. 

Be wary of information seekers: If someone calls you asking for information that you’d expect them to already have, be on guard. For example, your bank will never phone or email asking for account details, passwords or online banking authorisation codes.

Look out for unusual transactions: If you receive a payment into your account that you aren’t expecting, check it out. If it’s not yours, make sure that the funds are cleared before returning them, and that they go back into the account they came from. Your bank should be able to help you with this.

Keep secrets: Never give out your online credentials, PINs, passwords or authorisation codes to anybody who calls, emails or texts you.

Don’t be rushed: Criminals will often express urgency and offer inducements to make you act quickly, so make sure you take the time to thoroughly check any requests to make payments or to amend payment details. Ignore any requests to move money to a new account to keep it safe, as your bank will never ask you to do this.

It is a sad state of affairs but it seems the answer is to never trust anyone who contacts you by phone or email unless you are absolutely certain you know who they are and why they need the information they are requesting.

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk