The Rural Bulletin: 7 September 2017

Leaked migrant plans threaten UK food chain

Government plans to restrict the availability of unskilled migrant labour from EU nations after Brexit pose a serious threat to the entire food chain, farm leaders have warned.

A leaked Home Office document – which is yet to be endorsed by ministers – revealed plans to limit permits for unskilled migrant labourers to two years, with highly skilled workers allowed up to five years. However, both the NFU and Food and Drink Federation insisted that such an abrupt reduction in EU workers would cause massive disruption to the food chain.

Mistakes to CSS applications could prove costly

More than half of applications for the mid-tier Countryside Stewardship Scheme contain errors or are missing information, potentially jeopardising farmers’ chances of being offered an agreement. Common errors include failing to initial any corrections made, not supplying photographs, and leaving the Farm Environment Record blank.

Natural England has said this year’s scheme could be over-subscribed, in which case agreements will be offered to the highest scoring applicants. The deadline for applications is 30 September 2017. It has published guidance on how to avoid common errors and is encouraging farmers to submit their forms early. 

Farm profits set to improve in 2018

Farm profitability is likely to be the best for four years in 2018, according to the new John Nix Pocketbook for Farm Management. Feed wheat gross margins are forecast to average £744/ha – around 12% up on last year’s budget figure.

Dairy incomes are set to beat 2016 and 2017, while lowland beef suckler herds are forecast to produce a gross margin of £200 a cow. Sheep producers are also likely to enjoy strong results. However, many producers will remain reliant on subsidies, with Brexit and other uncertainties likely to change the picture over the coming year. 

Pleasing harvest results in the North

Harvest in northern England and Scotland is entering its final phase, with generally pleasing yields and quality; a stark contrast to the dismal quality of later crops in the South. Around 80% of spring barley is now cut in the Borders, although showers continue to hamper attempts to get into ripe crops.

Further south, combines have been making inroads into peas and beans, with yields up on last year but quality struggling due to the wet weather.

Contact the Rural Consultancy Team