Negative Thoughts by Michael Bax

Sometimes I do just sit and wonder whether farmers have proper tabs on their business, and more importantly, whether land agents have a clue as to what is going on in the industry.

The review of Single Farm Payment is a very critical subject.

Why?

1. We are told that farming incomes are averaging approx. £20K per annum and that Single Payment averages approx. £20K per annum. On those farms therefore, there is no profit being earnt from production.
2. A noted columnist in Farmer's Weekly recently informed us that his latest costings indicated that his 09 wheat crop had cost £125/tonne to produce. He still has 200 tonnes in store worth £95/tonne. At a yield of 3 tonnes (and presumably quite a bit more), his shortfall is £90/acre. There goes his Single Farm Payment!
3. All the time the Single Farm Payment comes through on an annual basis at current levels, the status quo survives.
4. In the meantime the Eastern Bloc want a bigger share, the conservationists want more on Pillar 2, and the European Governments are generally bust and so want to pay out as little as possible.

One day it may not be alright next year!