Volatility has been a lengthy-mentioned subject in the case of farm commodity prices, however traditionally that volatility has been comparatively small in contrast with the extremes now we have just lately skilled.
We used to get excited when wheat went up £10/t. It would have been inconceivable six months in the past to think about a drop of £30-£40/t in a week, adopted by a rise of comparable quantities the week after, or that wheat can be on the £300/t mark.
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Current excessive prices are like a fire door in a burning building, artificially holding again the flames, nevertheless it may hand over at any time to show the contents of the room – the UK farming business – to the flames.
The Rural Payments Agency has provided a small fire extinguisher by paying us half of the Basic Payment Scheme cash in July, which can purchase a while, nevertheless it gained’t deal with the issue.
This is way the identical as elevated credit score services or delayed funds – all of them assist in the quick time period, however in the long run that is going to require some work from all areas of business to seek out options.
As farmers now we have to assist ourselves, however we additionally need assistance from suppliers, finish customers, clients, landlords and authorities.
On a extra constructive be aware, is there a higher month of the yr than May? The farm is bursting into life, hedges are inexperienced, margins are beginning to flower, crops are coming into ear and livestock are out in fields.
I at all times wrongly understand June to be the quiet month earlier than issues begin to get busy. It’s a mistake I make yearly, with out fail.
While it isn’t a difficult “busy” time and supplies some vital time away from the farm with occasions reminiscent of Cereals, Groundswell and numerous trials, there may be additionally that seemingly by no means-ending to-do record that must be labored by means of earlier than harvest.
I wouldn’t be doing my job if I didn’t once more point out my AHDB Monitor Farm launch assembly, which is on 6 July.
I’m actually wanting ahead to welcoming everybody to the farm and utilizing the platform over the following three years to maneuver all of our companies ahead.