The recent NFU Business Symposium offered a variety of speakers with an overall, positive message.  The theme of the meeting was ‘Opportunity Agriculture: Managing Business Change’, with discussions from NFU policy to consultant roles and the exchange of knowledge.  Brexit was a prominent theme throughout the day, with speakers emphasising the subsequent change and, therefore, the need for preparedness.  Certain challenges that the industry may face are the threat to the availability of labour, trade agreements, and the increased emphasis on environmental matters. With the shortage of skilled labour, investment in technology and more modern practices could be seen to overcome this issue – Mark Suthern of Barclays, spoke of the Agritech agenda and the need for further investment.

Environmental focus is another subject that was prominent, particularly in regard to subsidy payments.  As Dr Andrew Clarke of the NFU highlighted, there may well be BPS payments after 2024, but under what conditions?  The general consensus is that subsidy payments will certainly be taking a more environmental stance, rewarding efficiency and innovation.  Efficiency and productivity is being particularly encouraged by the NFU and AHDB, with AHDB investing in their knowledge exchange programme, according to Dr Susannah Bolton, Director of Knowledge Exchange at AHDB.  One of the constraints in productivity is knowledge, and AHDB has found that while the UK is a strong contender in research, translating that into knowledge shared by farmers is poor.  Expanding the knowledge of farmers and others in the industry is key to aiding efficiency and production, something that Tom Bradshaw at ProAgri Ltd is measuring in his contracting business.  On a farming level, Tom is concentrating on his high variable and fixed costs, aiming to reduce fuel usage, improve soil health and making as much use of sunlight as possible.  Maintaining soil health whilst improving yields can often work against each other, therefore Tom has been looking at integrating cover crops and reducing the intensity of his farming methods by reducing the size of his machines, in turn lowering fuel use, compaction and his machinery costs.

Overall, the general message of the day was that change is good, and by working together, the industry could overcome what is yet to come.  The upcoming changes will encourage farmers to look at efficiency, reducing cost of production and look towards more environmental additions to their farming practices.  There are no definitive outcomes from Brexit yet, but it shouldn’t stop the industry moving forward and developing.  The UK agricultural industry is incredibly strong and resourceful, which should be reflected in the attitudes moving forward, past 2024.

To discuss further, contact Prue at pruewaterton@fcgagric.com or your local FCG office.