19/12/07
The Tenant Farmers Association’s National Chairman, Reg
Haydon, has called for all involved with farming including government,
landlords, suppliers and retailers to allow 2008 to provide an
opportunity for the farming industry to regroup after the disasters
of 2007.
Reg Haydon said “What farmers had to cope with in 2007 was
unprecedented. Floods, an outbreak of foot and mouth disease created
by our own government, bluetongue, avian flu, high fuel prices,
high feed costs and high fertilizer costs have combined to leave
farmers understandably punch-drunk in their wake. Of course there
has been some light in the dairy and arable sectors with improved
prices in both sectors. However, farm gate milk prices are still
below the levels received by farmers ten years ago and all the
while costs have been increasing and in the arable sector very
few producers were able to reap the benefits of the high market
prices for cereals this year as most grain was sold forward in
deals done in 2006 for prices well below 2007 levels.”
Looking ahead to next year, there are two areas which are a major
cause for concern for the tenanted sector – rent reviews
and ever more regulation.
“After years of relative inactivity, rural landlords right
across the country have been busy serving rent review notices on
their tenant farmers in the expectation of achieving rent increases.
Their agents have fuelled them with high expectations but whilst
there might be a little room for manoeuvre on arable units, I really
cannot see how any increase in rents can be justified elsewhere.
Indeed in the red and white meat sectors rent reductions would
be more in keeping with the economic situation they face. Therefore,
I would urge landlords and their agents to act prudently and with
restraint to avoid unnecessary and costly battles which will do
little to benefit either party in the long-term,” said Mr
Haydon.
“The government too must show restraint. There is a worrying
queue of new regulation parked up on the slip road and ready to
roll at the government’s behest. Included are new rules for
Nitrate Vulnerable Zones, new measures under the Water Framework
Directive, a greater shifting of the burden of the costs of controlling
animal diseases towards the industry, increased cross compliance
under the Single Payment Scheme and new animal identification and
movement rules; particularly the double-tagging of sheep. The analysis
which underpins much of this new legislation is seriously flawed
and the increased costs that they will bring will not be reflected
in farm gate prices. The government must listen to the industry’s
concerns on these issues rather than simply paying lip service
to the process of consultation,” said Mr Haydon.
Defra's
Nitrate Proposals: All Pain With No Gain
Bluetongue Vaccine Option Should Be Evaluated for Scotland and Wales
Joint Disease Initiative Should First Tackle Government Inefficiency |