CARA Wales

The low milk price is really biting now and the majority of dairy farmers are finding it tough going. It is more important than ever to closely analyse your business and cost of production to ensure the long term viability. The Farming Connect service in Wales is helping to fund advice to farmers to assess their business, and this is service we can provide.

Questions that need raising are:

Can I reduce my production cost? Am I maximising forage contribution? Do I need all my kit and tractors? How do I compare to others?

The average producer has no control over milk price – assuming they are achieving the best price available- but can control their cost base.

We produce benchmarking data for our customers to compare to. This allows system and business weaknesses to be highlighted and opportunities identified. This invaluable tool enables CARA customers to move forward and improve profits. For further details please contact the office.

The YESS scheme application window for the 2010/11 scheme year will open for applications on 4th Jan 2010 and close on 28 February 2010.

The Young Entrants Support Scheme will include a 50% grant up to a maximum £15,000 for new entrants. Eligibility is limited to those farmers under 40 who have become head of holding for the first time, or at any time in the last 12 months. Sole traders under 40 will be given priority followed by partnerships where all partners are under 40, and then partnerships with one partner under 40.

Very few details are currently available on what will be eligible for grant aid, other than the general heading of capital expenditure, however we are expecting more information to be released in January.

Menter a Busnes will be holding meetings in early January to publicise these details. The meetings will commence at 7.30pm and are located at :-

7^th January 2010 – Talbot Hotel, Tregaron

18^th January 2010 – Nantyffin Motel, Llandissilio

If you wish to apply for the scheme, you will need to complete an Expression of Interest form, and submit your application along with a viable business plan by the 28^th February 2010.You will be able to access 80% funding towards the preparation of the business plan through Farming Connect, where John, Iwan and Wendy are registered to deliver. Please contact us immediately if you would like us to assist, since time constraints will be tight. 

For reliable fertiliser planning it is essential that the nutrient content, rate and time of application of manures are known. The nutrient content of animal excreta is greatly influenced by factors such as diet and water dilution. Slurry nutrient content may vary from one year to the next on the same holding. CARA recommends that the nutrient content of a representative sample be determined by analysis at least once per annum. Interim assessments of slurry can be made by using a slurry hydrometer. CARA are able to provide a lab analysis service, interim assessment via hydrometer and give a report on crop nutrient planning based on results.

CARA slurry/manure analysis = £42 + VAT. Analysis gives levels of Nitrogen, Phosphate, Potash, Magnesium and dry matter. This would allow you to carry out a manure management plan and accurately plan fertiliser requirements. This in turn would:

·         improve crop nutrient management

·         result in potential savings on fertiliser inputs

·         meet farm assurance criteria

·         gain environmental agency approval

·         benefit the environment

If you are currently part of the Tir Cynnal scheme, you will have recently been sent a letter asking whether you would like to join the new Transitional Tir Cynnal Scheme, or whether you would like to remain within your existing scheme.

If you choose to remain in your existing scheme it will come to an end on the 5th anniversary of joining the scheme, which for most people will be during 2010 or 2011.

The new Transitional Tir Cynnal scheme will run from 1st of January 2010 until the 31st of December 2013. This will therefore bridge the gap between your existing scheme ending and the new Glastir scheme starting.

You must return the form to the Welsh Assembly by the 28th September 2009 if you wish to join the Transitional Tir Cynnal Scheme. Please ring the office for further details.

We have formed a relationship with Robert Cope of the Jigsaw Buying group to enable customers to source chepaer feed. The group bulk buys inputs, mainly feedstuffs and passes the savings on to it’s members. There is no membership fee, and the feed is all of a very high quality and regularly tested. If you are interested, click through on the link in “People we work with” or phone the office here.

Typical savings of £20-30 per tonne possible on concentrates which is equivalent to £7,500 per year for the average dairy herd.

Cattle Keepers –

It is critical that you notify BCMS of movements within 3 days. Any late notifications could immediately mean a 3% penalty across all schemes, i.e. Single Payment Scheme, Tir Gofal, Tir Cynnal, Tir Mynydd, Organic Farming Scheme.

This is the most common cross compliance failure in Wales. If you require assistance in notifying BCMS, please let us know. We can provide a service to notify CTS online on your behalf.

Soil Assessment –

In the recent wet weather a number of farmers have been penalised for causing soil damage or soil erosion and not recording it in their soil assessment books. If any damage occurs to your fields in wet weather, record it in your soil assessment book immediately, even if you hope to rectify the damage in the near future. This should protect you from any penalty if you were inspected.

If your farming business has one or more partners under the age of 40, then you now qualify for 80% funding towards any consultancy receieved through the scheme. If all partners are over 40 then 50% funding is available towards the cost.

This consultancy can be used for whole farm planning, budgets & cashflows, technical advice, succession planning etc, and can be tailored to your indvidual needs.

If you are interested in recieving advice through Farming Connect, you will need to call 0845 6000 813 and ask for either John Crimes, Iwan Price or Wendy Jenkins under AgriPlan Cymru.

The Single Application Forms have now arrived. PLEASE, PLEASE phone for your appointment as soon as possible on 01570 471516. The last day of appointments in the office is the 8th of May 2009.

When you come into the office for you appointment please bring with you :-

SAF 2009 Form (Yellow Pack)

2009 Maps (Green Pack)

Exact Stock Numbers

Soil Assessment Booklet

Farm Assurance Number

Tir Gofal/Organic Scheme Maps & Agreements

List of any extra land – holding numbers etc

We look forward to seeing you!

You may have read the article in the Farmers Weekly recently about locking in your Single Farm Payment at the current Euro/Sterling conversion rate. This e-mail attempts to explain the issue and to make you aware of the options available.

Your Single Farm Payment is calculated in Euros by the Welsh Assembly Government. You can then choose on your Single Application Form whether to receive the payment in Euros or Sterling. The vast majority of farmers usually elect to receive their payments in Sterling. The payment is therefore converted to Sterling by the Assembly on the conversion rate on the 30^th of September in that calendar year. (0.79 conversion rate in 2008)

The farmers who elect to receive their payment in Euros are paid in Euros into a Euro bank account which they have set up with the bank. They can then convert these Euros back to Sterling at any time they wish, (most would do so when they received the payment – 1^st of Dec for majority). This effectively means that these farmers can choose to play with the exchange rate if they wish.

The article in the farmers weekly by World First, highlighted the option of forward booking a conversion of your euros into sterling at today’s conversion rate, which is 0.94. They required a deposit of 10% from farmers for this service, however the main banks are offering this service without a deposit.

SO WHAT WOULD YOU GAIN?

The conversion rate in 2007 was 0.69

The conversion rate in 2008 was 0.79

The conversion rate today is         0.94

On a payment of say €40,000 you would have received (before modulation) :-

2007  £27,600

2008 £31,600

2009 £37,600 (at today’s rate)

All you are doing is therefore eliminating the risk that the exchange rate falls back between today and the 30^th of September when the Assembly converts the money.

SO WHAT WOULD YOU LOSE?

The gamble you would take by forward booking a conversion rate is that the pound weakened further and that the conversion rate would improve by the 30^th of September.  (Barclays Chief Economist  is however indicating that the exchange rate will fall back towards 0.85 towards the end of the year. )

By pre-booking this conversion rate you are entering into a contract to convert your Euros in a certain payment window e.g. 1/1/10 to 31/03/10. If your payment was late for any reason, you would then be in breach of contract. However, the contracts can be extended for a fee.