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Monthly eNewsletter
1st October 2022

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The Sustainable Farming Incentive (SFI) 2022 is open to applications now with payments available in January. With no changes to farming practice, the SFI is the first of three schemes open under ELMs and forms part of the replacement for BPS.

 

All BPS eligible farmers can now apply for SFI on eligible land which could top up your BPS by at least £9/acre per year.

 

You can start getting SFI payments with Arable and Grassland Standards now. As BPS reduces, more SFI standards will become available as they are released over the next couple of years, including hedge, nutrient, and pest management options expected in 2023, and low-input grassland, biodiversity and water body buffering options in 2024.

 

While these new standards may change based on feedback from farmers and others involved in the SFI pilot, it is unlikely this will alter the entire scope of each standard, and only impact details of each, much of which we haven’t yet seen from Defra.

 

The existing Arable and Grassland standards are straightforward to undertake. Farmers with arable land will need to complete tasks such as soil assessment, producing a soil management plan, ensuring they are adding organic matter and protecting the soils over winter.

 

Grassland standards have similar requirements to Arable, with soil assessment, organic matter testing and minimising bare soils over winter all covered in the elements required of farmers within an agreement.

 

SFI agreements will last for three years, unlike the five-year agreements of the current mid-tier scheme which will allow for more flexible field management on-farm. As with Countryside Stewardship, SFI agreement holders will need to have control of the land for the entire period of the agreement.

 

While SFI payments will not include any capital funding in 2022, this should not put you off from applying for an agreement. You can enter a Countryside Stewardship capital grants application on land receiving payments under an SFI agreement. In the future, SFI will include capital items funding.

 

SFI in 2022 represents a good opportunity to get a foot on the rung of the ELMs ladder, starting with the Grassland or Arable standards, with good potential to stack payments as the scheme is developed.

 

Email sam@justfarm.co.uk or call Edward on 01451 828108 to find out more information about the SFI and applying it to your farm.

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Cefetra Market Report - Late September 2022

 

I am writing this on 21st September as Putin announces he is calling up reservists, and he and other ministers blame the West and effectively threaten the use of nuclear weapons. Suddenly the world seems a far less safe place.

 

Yesterday morning the market dropped £6.00 on talk from Turkey’s President Erdogan that Putin was willing to end the war. By the end of the day, it was up £2.50 on rumours that Putin planned to address the nation and was talking of mobilising reservists. The fact that such different narratives can be expressed almost at the same time mean the markets, along with us, are struggling to know which way to move and can react quite dramatically.

 

I do not know where things will be by the time this is being read but I strongly suspect we will have seen continued volatility in prices.

 

Prior to the above, the markets looked somewhat weaker as prices drifted/remained flat when the focus returned to fundamental Supply & Demand. Forecasts for the Russian crop were increased to 99Mmt (from 97Mmt) with 47.5Mmt (from 46Mmt) of exports and there was little negative weather news across the world, perhaps with the exception of China, where some very dry weather is resulting in a smaller Chinese corn crop. They appear keen to re-build their stock levels. Effectively the market is trading the headlines around Russia and the Ukraine.

 

The grain corridor deal is valid for 120 days, ending on 19 th November. Putin has already stated (incorrectly) that only 2 of the 87 vessels went to poor countries (in fact only 0.9Mmt of 2.3Mmt went to the EU according to the UN). If the deal is not extended it will impact on circa 2-2.5Mmt of exports/month. However, Russia also has a record wheat crop and is keen to export their large surplus. Many countries are not buying grains from Russia, whether as a voluntary sanction or for structural reasons such as difficult logistics and the removal of banking facilities, even though Russian wheat is the cheapest grain in the world.

 

Underlying the above are general concerns around a global recession, increasing interest rates and inflation.

 

Now more than ever is a time to stay very close to the markets - input costs going forward are much higher and therefore it is imperative that you take advantage of spikes in the prices. Please keep talking to us for market updates and a view on how we can structure the best deals to suit you and your business for the future.

 

If you wish to discuss your grain marketing, please do not hesitate to contact us: 

Simon Wilcox

Manager - UK Farm Grain Origination

T: 01963 363162

M: 07774 822507

E: wilcox@cefetra.co.uk

Marc Hinton

Farm Grain Buyer

M: 07957 791358

E: hinton@cefetra.co.uk

Josef Grinczer

Farm Grain Buyer

M: 07712 325197

E: grinczer@cefetra.co.uk

Members Section

New Features for the Orion App

 

Orion Farming Group remains the only farm buying group to provide Members with a secure app that provides:

  • Fuel – daily fuel prices provided by supplier together with an ability to order directly from the App

  • Feed – weekly straights prices provided for key commodity groups

  • Fert – periodic updates of key fert prices

  • Suppliers – instant search and details from the 500+ suppliers to Orion Farming Group

  • Contact – direct phone access to the Orion office

New features are now also available:

  • Cefetra prices – Cefetra grain periodically directly input guideline ex farm spot and futures prices for key commodities

  • *NEW* Accounts – by request, you can now access your invoices for each accounts month via the Orion App, enabling you to review each invoice without needing to go to the Orion website. Please contact Adam Donaldson if you would like access to this feature, on 07907 581094.

 

For details on how to access the Orion App, please contact Adam.

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Feed & Livestock Section

Minerals

Group prices have been received for the Orion spec minerals for Q4 (Oct – Dec) and members have been informed in a separate email as to which supplier is the preferred choice to supply the Group during this period.

Molasses

Group prices have been received for molasses for the period 1st October 2022- 30th April 2023 and members have been informed in a separate email as to which supplier is the preferred choice to supply the Group during this period.

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Bagged products

Suppliers submit Group prices for feed supplements and fats at the beginning of every month and inevitably there will be price increases on certain products. If you order bagged products on a monthly basis, it’s advisable to place your order as close to the end of the month as possible for delivery and invoicing the following month, in order to take advantage of any savings, rather than wait for the beginning of the new month.

Congratulations

Just a brief mention to congratulate David Passmore of Wallingford whose wheat crop was voted the best in Oxfordshire, yielding well over 13T/ha.

And Finally...

Totally irrelevant but quite interesting facts of the month…

Shoes with five eyelets on each side can be laced up 51,840 different ways and there are 177,147 ways to tie a tie.

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For more details on any matter raised in the Feed & Livestock section, please contact Joe in the office:

Joe Cobb, Feed & Livestock Manager,  01865 393 139

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For more information:

www.ofg.org.uk