Agrifacts June 2023

Page 1

Agrifacts | June

2023

monthly roundup of news, prices and other farming matters

Your

| Grain Market Report

Wheat

Global wheat prices have strengthened slightly from recent lows as weather markets start to develop in key crop growing areas. Markets have been testing previous resistance levels but are struggling to break through them, instead selling back down in the absence of any sustained support.

UK markets remain quiet with old crop homes filling up and an export market which is time limited against large impending EU crops. LIFFE continues to track global markets higher with £203 the next overhead resistance level, but substantial demand is needed to give this market a real kick. We remain uncompetitive on new crop exports, and domestic consumers continue to chip away at nearby cover against a UK farmer who is slowly beginning to release stocks ahead of potential harvest pressure.

Malting Barley

Malting barley markets have rallied strongly again recently, as prolonged dry weather in Denmark in particular spooks the market. Local commentators are talking of yield losses up to 20% and as a result co-ops look to buy back contracts they had sold on the FOB market. This buying interest is falling on deaf ears however, as farmers are reluctant to sell malting barley across the Continent, a common theme for all commodities. It now depends on the harvest in other northern EU origins, as if French and UK crops perform then the very localised Scandinavian issue becomes less significant. The French have begun harvesting their excellent looking barley crop, and in the UK crops are progressing at pace following the recent hot/dry weather. It looks like most spring crops will benefit from some showers over the next few weeks as well.

Feed Barley

Old crop feed barley markets continue to trade on very thin volumes. Both supply and demand is difficult to come across as the season draws to a close and the market is trading without any real direction. New crop feed markets are similarly slow. The farmer is still noticeably absent from the table, and volumes getting offered to the market are extremely scarce. As a result, the presence of some consumer interest (albeit also in limited volume) has helped to squeeze barley markets slightly higher relative to wheat. Export interest is nowhere to be found as we are uncompetitive into Spain vs Black Sea for harvest, despite the market pricing at a large discount vs domestic values in the later positions.

Rapeseed

As expected the Federal Reserve held US interest rates unchanged after 10 consecutive hikes. However, they did mention the possibility of several more increases before the end of the calendar year. The recent bearish USDA report was essentially dismissed on everyone’s return and as expected the trade’s attention returned to weather developments. Energy markets fell back from recent highs on renewed concerns over global demand, China was rumoured to be selling oil rather than buying it. Veg oils traded off the highs we made recently. Palm production for May came in at 1.51mln t vs expectations of 1.45mln t. Despite any price rise the market lacked any significant farmer selling as we head into the final few weeks of the season. The firmer Euro/Dollar added pressure whilst the trade is mindful to watch any weather events in the upcoming weeks.

Seed

Winter Wheat Champion so far looks to be a stand-out variety for cleanliness, which is reflected the AHDB recommended list Septoria score of 8.1 and very high untreated yields. ADM has a great autumn portfolio with a variety of options to suit all situations on farm. Winter barley, Tardis is looking to be an excellent choice, particularly on heavier sites, with its excellent standing power. Tardis from KWS is the only variety on the list to have a rating of 8 for resistance to lodging both with and without PGR. Our oilseed rape portfolio consists of some of the most vigorous varieties in the marketplace, to give the crop the best chance of getting away from the flea beetle in the autumn. LG Aviron and DK Excited are also supported by an establishment scheme to give extra peace of mind.

When thinking about OSR this year, why not take a look at our companion crop mixtures? They are great for helping to aid establishment by deterring flea beetle and improving soil health. Our mixes include fenugreek, buckwheat and berseem clover: Berseem clover has nitrogen-fixing properties and fast growth and establishment. Fenugreek deters flea beetle due to its natural odour, protecting the OSR plants. Buckwheat provides a dense canopy over the OSR crop and is an amazing weed suppressor.

Please contact our seed team for any enquiries.

| Trinity AgTech and Fisher German

At Fisher German we are pleased to announce that we are working with Trinity AgTech to use their end-to-end navigator software ‘Sandy’ to support our clients, both rural and commercial. This will assist with gaining a credible view of the natural capital and carbon potential and develop ways of improving them while maintaining the core focus of business resilience and profitability.

Trinity AgTech is a member of the Trinity Natural Capital Group and offers a cutting-edge new generation digital platform providing full sustainability support for farmers. Supported by 41-strong Scientific Board, the company has developed an ecosystem of products which in combination aim to improve the measurement of agricultural economics and sustainability.

Sandy enables farmers and landowners to measure, manage and optimise all aspects of their natural capital assets. Sandy includes industry-leading modules for carbon, biodiversity, and water protection, as well as many other functions and includes a full suite of non-prescriptive optimisation and scenario planning modules.

From a rural perspective, we want to help our farmers and landowners identify business efficiencies and new income opportunities, especially with the reduction in government subsidies. Sandy will help these clients to identify the potential to improve their sustainability and unlock capital within their land without the need to diversify outside of agriculture.

| Countryside Stewardship – Mid Tier Applications open

The application window for Mid Tier and Wildlife offers are open and will remain open until 18 August 2023. This is for agreements that will start on 1 January 2024.

Countryside Stewardship Mid Tier offers a menu of over 250 options which can be selected to best suit the holding and farming practices. This means that the agreement can aid the current rotation or replace underperforming areas with a stewardship option that will give a guaranteed income.

Our team can work with farmers and landowners to build an application that will work for you, please get in touch if you would like any support.

SFI 2023 Announcement

DEFRA has recently published further details of the Standards available under the Sustainable Farming Incentive (SFI) in 2023.These will be available for applications from August onwards.

These are largely the same as set out in the Environmental Land Management update in January 2023, however, there have been some changes:

• The Soil and Moorland Standards have altered compared to the 2022 version. In line with the new approach of the SFI, instead of multiple actions being grouped into Levels (Introductory, Intermediate etc.) the actions themselves are just offered. DEFRA states that this allows farmers to adopt a more flexible pick-and-mix approach. This does mean that three actions included in the 2022 Soils Standard (add organic matter, single species winter cover, and minimise bare ground) will no longer be available as they only have benefit when grouped with other actions.

• The management Payment of £20 per hectare on up to the first 50 hectares entered the SFI will now be paid on all Standards. Previously, the Moorland Standard was going to be excluded as no land management actions are required.

• The rates for Low-Input Grassland have been equalised between the SDA and non-SDA (lowland) farms.

Please get in touch with a member of the team to discuss any options and what may be the best approach for you.

Month (ex farm) Midlands Feed Wheat Feed Barley Oilseed Rape Currency June 2023 £180/t £160/t £358/t £/€ = 1.16 Milk Data Avg Monthly Price UK Farmgate Milk Price 38.6 ppl Fuel/Straw/Silage Price Fertiliser Price Red Diesel 69.3p/l Nitram £/tonne £345.00 Big sq Baled Wheat Straw £45.00/tonne Gran Urea £/tonne £330.00 Big Bale Hay £90.00/tonne TSP £/tonne £440.00 Finished Steers Finished Lambs Finished Pigs p/kg dwt 495.0 655.5 220.5 | Grain Market Prices
|

Landscape Recovery - Round Two

Applications are open for the second round of the Landscape recovery until Midday on 21 September 2023. Landscape Recovery is one of the 3 Environmental Land Management (ELM) schemes, alongside the Sustainable Farming Incentive and Countryside Stewardship.

Landscape Recovery offers farmers and land managers the opportunity to co-design a bespoke agreement to produce environmental and climate goods across landscape scale projects. This round of applications will focus on net zero, protected sits and wildlife-rich habitats. There are 4 main distinguishing features of the Landscape Recovery scheme:

• Large-scale projects: the scheme is designed to deliver outcomes that require collaborative action across a big area, such as restoring ecological or hydrological function across a landscape.

• Long-term public funding (for example for 20 years or longer): the scheme will support outcomes that take a long time to deliver, such as peatland restoration, woodland management, or habitat restoration.

• Bespoke agreements: the scheme can fund activities that contribute to priority outcomes but are specific to the locality and so difficult to facilitate through other schemes.

• Blended funding: the features above and the provision of development funding should enable projects to attract private investment. If this is something you may be interested in, please get in touch with one of the team. Date

| Key Dates

1 August 2023

1 August 2023

1 September 2023

1 September 2023

1 September 2023

15 September 2023

Regulation

Cross Compliance

Cross Compliance

Restriction

If you have been granted a derogation by RPA, you may be able to cut or trim hedges throughout August, to sow oilseed rape or temporary grassland. (GAEC 7a)

Start of closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to tillage land on shallow or sandy soils except where crops will be sown on or before 15 September. (SMR 1)

Cross Compliance You can cut or trim hedges and trees from this date. (GAEC 7a and 7c)

Cross Compliance

Start of closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to grassland on shallow or sandy soils. (SMR 1)

Cross Compliance Start of closed period for applying manufactured nitrogen fertilisers to tillage land. (SMR 1)

Cross Compliance Start of closed period for applying manufactured nitrogen fertilisers to grassland. (SMR 1)

16 September 2023

schem

Cross Compliance

Start of closed period for applying organic manure with a high readily available nitrogen content (for example, slurry, poultry manures or liquid digested sewage sludge) to tillage land on shallow or sandy soils which have been sown with crops on or before 15 September. (SMR 1)

fishergerman.co.uk

01858 410200

farms@fishergerman.co.uk

|

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.