DEFRA muddle (From Gazette & Herald)

DEFRA muddle

MANY readers of this article who farm will no doubt have heard of the phrase "cross compliance" in the context of the mid-term review of the common agricultural policy (CAP). For those of you who don't, it means there will be conditions placed on farmers which will cover a multitude of sins, in order that the farmer may receive the new decoupled subsidy payment.

With many of us still in the dark regarding the rules, it is clear that cross compliance is about to become an ever-growing part of farming life. DEFRA has released a consultation paper which states that it intends to implement cross compliance "with a light touch", although I am very sceptical, as anything DEFRA implements seems to be associated with a mass of bureaucracy.

It appears that cross compliance is going to become more stringent with time and, in order for farmers to receive subsidy, they will have to comply with EU standards on the environment, public health, animal health and welfare as well as generally maintaining the land in good agricultural and environmental condition - what this could mean is anybody's guess.

DEFRA has estimated that the average annual cost per farm will be in the region of £1,000, in order for the farmer to successfully cross comply, with penalties for non-compliance being considerably greater. As we all know, with the current IACS system, DEFRA can make mistakes and the farmer cannot - so BEWARE!

It is hoped detailed rules will be out within the next month in order that farmers can start to plan for the next season.

I have read this week, to my amazement, that recently a farmer has been asked by the supermarket he supplies to confirm that the wood he uses to repair his potato boxes has come from a sustainable source!

I cannot believe that the consumers would particularly care regarding this matter, but it would appear that it shows what sort of world we live in today with ever-increasing ridiculous demands.

Old crop prices have fallen dramatically in the past two weeks in the face of non-existent export demand and a UK surplus still to sell. The rollercoaster market of 2003-4 will take some beating in terms of sheer price volatility. July 2004 wheat futures peaked in December 2003 at £121.25, after rising from a low of £72.25 and, as I write, July futures are trading at £83, or £38.25 from the top of the market and £10.75 off the bottom.

While farmers sold their grain reasonably well in this volatile market, it would appear as if less than 50pc of farmers averaged over £80 ex-farm for their wheat. This is more understandable when you consider that, in 2002-3, £60 was more like the average price for the marketing year.

New crop wheat prices have eased as ideal growing conditions are prevalent throughout the EU and in other major producing regions, such as North America and eastern Europe. However, with world wheat stocks at very low levels, we cannot afford a crop failure anywhere.

In the USA, soya markets have fallen, too, from prices that were at a 25-year high ten days ago. This has dropped UK rapeseed prices by £10 per tonne for the coming harvest. In all grain markets, volatility is the name of the game and it looks like it's here to stay.

The overall cattle herd in England increased by 1pc in February on the previous year. However, the breeding herd has decreased by 1.5pc due to the decline in dairy cow numbers. Total prime cattle slaughtered were up over 1,000 head on February 2003.

I am pleased to read that household purchases of beef were up, albeit by only 0.5pc.

The sheep flock in England decreased by 3pc year on year, to total 11.02m head. The total number of clean sheep slaughtered in February was 10pc lower than in the previous February.

Consumption of lamb over the 12 months to February 29 was down by just under 2pc.

Forward on Tuesday were 162 cattle including 48 bulls and 31 cows; 1,298 sheep including 611 spring lambs and 446 ewes.

Light steers to 120p from D R Jackson, Carnaby; heavy steers to 126p from D R Jackson (average 101.5p). Light heifers to 135p from L W Aconley & Sons, East Cawthorne (105.7p); heavy heifers to 143p from G I Marwood, Harome (111.9p), light bulls to 116p from M Dent, Rosedale (103.2p). Heavy bulls to 110p from R H Mason, Wold Newton (100.4p); black and white bulls to 88p from C Leckonby, Pockley (82.1p).

Standard lambs to 146.8p from G H Sutton, Wold Newton (141.4p); medium lambs to 150p from C T Stonehouse, Brawby (139.7p); heavy lambs to 135.8p from R Welford, Carlton (125.5p). Light hoggets to 112.8p from P R Ball, Seaton, (108p); standard hoggets to 114.2p from J Goulder, Kirby Misperton (108.1p); medium hoggets to 112p from J H Ruston, Knapton (06.8p); heavy hoggs to 107.5p from J E Clifford, Slingsby (94.08p); ewes to £60 from E E Wilkinson, Langtoft (£39.09).

Updated: 12:11 Wednesday, May 26, 2004