Supplementary written evidence submitted
by the National Farmers' Union
The NFU welcomes the Committee's invitation
to submit supplementary commentary to our written and oral evidence
provided earlier this autumn. The unusually cold start to winter
2010-11 following a dry cold spring, demonstrates the particular
challenge and vulnerability of livestock farming, and especially
so in the English Uplands, that we described to the Committee.
The Committee secretariat has asked for additional
views on upland farming. We address each of these below:
What is required to assure the economic sustainability
of upland farming?
We have already submitted our analysis of Defra's
Farm business data. This shows that cattle and sheep farm businesses
(the standard upland farming type) have relatively low returns
compared with other farm types. As we explained, the continuation
of upland farming, with the associated benefits to the environment,
landscape and society requires that their economic situation becomes
more favourable with more reliable returns from the market coupled
to new income streams from diversified income sources. In the
context of concerns about food security, interest in food authenticity
and "food miles" coupled with climate change, we are
convinced that the agricultural market place will provide a growing
proportion of upland incomes especially.
However increasing "agricultural"
returns require a redoubled focus on production efficiency—an
effort that EBLEX should be well placed to support via its recently
published sector roadmaps and knowledge transfer initiatives.
We believe that these programmes (coupled to activity channelled
through the RDPE axis 1 support) should enable more upland farms
to become less reliant on Single Payment Scheme and more resilient
to economic and agricultural challenge. This requires that farms
can evaluate their competitive position, access novel and innovative
farming techniques, collaborate as producers to cooperatively
market food production within and beyond the processing chain;
have available broad but appropriate range of income streams (ie
diversification and conservation agreements).
Can hill farming businesses respond to market
signals as lowland farms respond?
Upland farmers need strong business skills and
entrepreneurial outlooks coupled with knowledge of the agronomic
limitations of their farm. Those that are seeking to grow their
business, perhaps as part of a succession strategy, have particular
need to seek greater efficiencies, cut costs, diversify and maximise
the income from their livestock enterprises. However, livestock
farming does not provide the flexibility that characterises cropping
farms, it would be a mistake to treat both alike. Production cycles
are considerably longer (up to three years for finished cattle)
which means swift responses to market signals are impossible while
the land is less productive with greater restrictions on cropping
choice and growing season.
Our experience suggests that farmland is also
less frequently exchanged meaning that physically growing a holding
with contiguous parcels of land and so spreading fixed costs is
problematic. (Cropping farms do not require daily access to growing
crops for husbandry or feeding, so such farms able to exploit
more disparate patterns of farming). Physical separation of land
can make husbandry more difficult and certainly adds to regulatory
concerns (movement of livestock). Extending holdings also overlooks
the character of livestock farming which can continue on a low
output/low level of return with diversification/off farm income
subsidising the "livestock" business—so the opportunity
to enlarge holdings is much lower.
Can upland farms extensify their management and
inputs?
In principle more extensive herd management
should reduce unit costs of production; but extensive management
techniques can not imply a reduction on handling and animal welfare
standards. All livestock farmers, including those in the uplands,
are bound to legislative codes of good practice for welfare, which
includes ensuring that at critical times (eg in winter for feeding
and spring for lambing) regularly supervision is required. We
doubt that the public would tolerate extensive farming of the
uplands if this means semi-feral flocks and "ranched"
cattle herds. Indeed we perceive that environmental outcomes desired
by Defra and Natural England require increased shepherding to
ensure appropriate grazing across open moorlands and commons to
achieve optimal habitat condition. In the absence of fences in
such areas, shepherding of the right stock at the right times
in the right locations is the only option.
In common with lowland farms those in the uplands
are already using contractors to reduce cost of permanent staff
and equipment, such as for dipping or shearing. However, there
is little opportunity to contract out work for core business of
day-to-day livestock husbandry. This is not to say that some are
not collaborating with neighbours to share resources, indeed it
is customary practice for neighbouring farms to "gather"
a moorland or common. Given appropriate support and facilitation
additional activities can be undertaken collaboratively, such
as training, promotion and marketing of accommodation, collaborative
input purchase or knowledge transfer.
In our experience cooperation, especially involving
commons, requires locally respected and independent mediators
or facilitators to bring the variety of interested parties to
the table. Building business trust and consensus for change, even
where the outcome appears attractive to third parties, can be
a time consuming. A frequent blockage to building consensus is
the sharing of costs and benefits—while "win-wins"
are attractive to all, more frequently gains are not evenly shared
or even unattainable for farmers. For example, the "re-introduction"
of rare breeds for environmental reasons may result in a swift
outcome for habitat recovery but will require livestock keepers
to establish new market outlets and delayed or reduced market
returns reflecting the finishing condition of such breeds.
December 2010
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