Simon Moakes IBERS, Aberystwyth University

Similar documents
IN ENGLAND AND WALES 2014/15. Simon Moakes Nicolas Lampkin Catherine Gerrard. March As part of. Hamstead Marshall, Newbury

Organic lamb and beef - what does it cost to produce?

Welsh Organic Producer Survey 2013

Welsh Organic Producer Survey 2014

IN ENGLAND AND WALES 2005/06. Andrew Jackson and Nicolas Lampkin. February Organic Research Group at Aberystwyth

Total Factor Productivity: Using the Farm Business Survey. OECD Network for Farm Level Analysis

Welsh Organic Producer Survey Nic Lampkin and Stefano Orsini Organic Research Centre, Newbury - a partner in Organic Centre Wales

Welsh Organic Producer Survey 2015

Lowland cattle and sheep farms, under 100 hectares

Factors Affecting the Profitability of Organic Farms

Forecasts of Farm Business Income by type of farm in England 2013/14

Organic agriculture in Wales: 2010

Institute of Organic Training & Advice

SDA cattle and sheep farms, 120 hectares and over

Science and Innovation in Grassland

Key Statistics: Monthly Update January 2014

East Midlands Region Commentary 2011/2012

Producer price index 1998/99 to 2002/03 (July to June) / / / / /03 Year

Market Intelligence October Brexit Scenarios: an impact assessment

Report summarising farm business data compiled in The Prince s Farm Resilience Programme s Business Health Check tool 2017

THE FARM BUSINESS SURVEY IN WALES

R B R. Farm Business Survey. A summary from Organic Farming in England 2016/2017. Charles Scott April independent research, data and analysis

1. Under 60k SO Farm Business Income ( per farm)

Teagasc National Farm Survey 2016 Results

R B R. Farm Business Survey 2015/2016 A summary from Organic Farming in England. Charles Scott April independent research, data and analysis

Farm Performance in Scotland

Farm Household Income and Household Composition: Results from the Farm Business Survey: England 2009/10

The Impact of CAP Reform on Devon s Agriculture

Enterprise Budgeting... 1 Crop Inputs Introduction... 46

Upland forestry WALES study - Welsh Analysis of Land-use Economics & Subsidies

RBR. Farm Business Survey 2016/2017 A summary from Hill Farming in England. David Harvey and Charles Scott February 2018

Farmscoper. Frequently Asked Questions

Latest developments of beef production in the EU. Mark Topliff Senior Analyst AHDB Market Intelligence Brisbane June 2010

England 759, ,000 6% Scotland 471, ,000 7% Northern Ireland 269, ,000 9% Wales 187, ,000 9%

Commentary on Results

Farmer Confidence Survey

Review of the market for Welsh organic meat, 2007

Fiona Thorne Outlook for Inputs. Ag Econ and Farm Surveys Dept.

Definition of Terms and Explanatory Notes

Analysis of the Impact of the Abolition of Milk Quotas, Increased Modulation and Reductions in the Single Farm Payment on UK Agriculture

The real value of English red meat Economic analysis

Farm Income Review 2014

Countryside Productivity Scheme Large Grants. David Sillett Countryside Productivity Team Lead Rural Payments Agency

The compound feed industry in the EU livestock economy

RBR. Farm Business Survey. 2013/2014 Hill Farming in England. David Harvey and Charles Scott March independent research, data and analysis

AN AHDB PAPER ON THE IMPACT OF CHANGES IN COUPLED PAYMENTS TO THE UK CATTLE AND SHEEP SECTORS

The compound feed industry in the EU livestock economy

3. STRUCTURE OF AGRICULTURAL HOLDINGS BROKEN DOWN BY TYPES OF FARMING

Еconomic analysis of of typical typical farm types cultivating products for which Macedonia has very suitable production conditions

A Preliminary Estimate of the Cost of Damage Caused by Deer to Agriculture in England

The Organic Retail Market in Wales

UK and European Organic Markets and Policies

Farm Income Review 2012

Teagasc National Farm Survey 2014 Results

Interim Update on the Economic Impact of Michigan s Agri-Food and Agri-Energy System

Farming Statistics provisional arable crop areas at 1 June 2014 England

Impact of partial decoupling on prices, production and farm revenues in the EU

Support mechanisms for organic conversion in England and Wales

Organic versus conventional farming, which performs better financially?

Variation in fatty acid composition within breeding lines of novel oat varieties as potential ruminant feeds

Livestock Projects AHDB & Defra

Ruminant grassland production systems in Ireland. Dr Michael O Donovan, Animal and Grassland Innovation Centre, Teagasc, Moorepark, Fermoy, Co Cork

Walloon agriculture in figures

An expert centre fit to lead innovation and excellence for the UK livestock sector

Greenhouse Gas Emissions on Northern Ireland Dairy Farms

Micro simulation model estimating Czech farm income from Farm Accountancy Data Network database

Teagasc. National Farm Survey Results

STATISTICAL PROFILE OF HALIFAX AND HANTS COUNTIES. Prepared By: Nova Scotia Federation of Agriculture

Farmland and climate change: factors and lessons from farmed landscapes. ELO Biodiversity Conference Brussels 9 December 2015

Can Wales be 30% organic by 2030?

Structural Change and Distribution of Support in Hungarian Agriculture following EU Accession: A Preliminary FADN Analysis

Walloon agriculture in figures

Farm Financial Record Keeping Using Quicken for Windows Category List

Economics and GHG emissions of Irish cattle systems

STOCKTAKE REPORT 2015

The Distribution of Farm Program Payments in the U.S.

Market Review of the Welsh Organic Arable Sector, 2007

EU farm economics summary 2013

IMPLEMENTATION OF THE CAP REFORM ON LEAN BEEF FARMING SYSTEMS

Northern Ireland agricultural industry: An overview

Agriculture, Food and GHGs

Maximising profitability in mixed farming systems

Newsletter WELSH ORGANIC SCHEME. Sheep farmers urged to look out for Nematodirus. June Contact us:

Cereal Stocks UK / England and Wales June 2013

Economic Review. South African Agriculture. of the DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES

85th Annual Conference of the Agricultural Economics Society. Warwick University April 2011

The potential impacts of Brexit for farmers and farmland wildlife in the UK

THE PROFITABILITY OF CONVERSION TO ORGANIC FARMING SYSTEMS

Operating subsidies (both direct payments and rural development except investment support) 8 March 2018

RUSSIAN LIVESTOCK & POULTRY FARMING SECTOR

Economics 330 Fall 2005 Exam 1. Strategic Planning and Budgeting

Office for Investment Promotion and Strategic Projects Support

STAAR 4, 7 - Writing - 1, 2, 3 Livestock and Their Products

Direct support scheme in Kosovo*

Stuart Knight Deputy Director, NIAB

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT

Potential Process to Update Manure Generation Data for Phase 6 Model. April 19 th, 2018

Costs to Produce Milk in Illinois 2003

Beef Industry. Reality. Cow Numbers England 759, ,000 6% Scotland 471, ,000 7% Northern Ireland 269, ,000 9%

An Overview of Agriculture in the Rural Municipalities of the Lower Souris River Watershed. Dana Harper Jim Unterschultz Scott Jeffrey

Transcription:

Simon Moakes IBERS, Aberystwyth University

Introduction Defra funded Organic Farm Incomes project Methodology Overall position in 2007/08 Individual farm types Latest data and trends Conclusions

Organic Farm Incomes project Project undertaken by Aberystwyth university since 1995 Assess organic farm incomes in England and Wales Utilises data collected by Farm Business Survey Data analysed to produce figures for various farm types Annual report published each Spring Report is available online https://statistics.defra.gov.uk/esg/index/list.asp

Methodology Data split by: Organic, conventional or in-conversion status Farm types e.g. dairy, LFA Organic farms must be >70% fully organic Each organic farm matched with a number of comparable conventional farms from the same region and with similar features, to ensure a fair comparison Data presented as: A full farm sample of all suitable organic farms An identical farm sample for comparison between two years of data

Overall position 2007/08 Full farm samples organic vs. conventional, 2007/08: Nearly all organic farm types financially out-performed conventional farms, in 2007/08 Greatest difference on livestock farms Identical farm samples 2007/08 vs. 2006/07 Higher NFI in all organic farm types Higher NFI for most conventional farm types Organic NFI higher than conventional for all farm types

/ha Organic and conventional Net Farm Income, 2007/08 (Full sample) 2500 2000 1500 1000 500 0 Org. Conv.

/ha Organic Net Farm Income, 2006/07 and 2007/08 (Identical sample both years) 600 500 400 300 200 100 2006/07 2007/08 0

Cropping farms Organic NFI 40% higher in 2007/08 at 345/ha Conventional NFI higher at 215/ha Cropping output lower for both Organic wheat price up 38%, approx. 250/t Organic yields around 30% lower in 2007/08 Greater livestock and agri-environment payments on organic farms Organic input costs remained similar Conventional input costs up by 9%

Horticulture and poultry Horticulture Small sample sizes Organic NFI 15% higher than conventional at 2662/ha Poultry Small sample size (1st year enough farms for analysis) Organic NFI of 607/ha 47% lower than conventional Similar output, but organic farms had lower stocking rate and higher costs

Dairy (Lowland and LFA) Lowland dairy Organic NFI 19% higher in 2007/08 at 580/ha Conventional NFI up 100% to 419/ha Output up on both due to milk price increases Inputs increased by 10% (organic) and 8% (conventional) LFA dairy Organic NFI up28% to 345/ha in 2007/08 Organic output up 18%, averaging 29ppl Organic inputs also up, by 16%

Cattle and sheep (Lowland and LFA) Lowland cattle and sheep Organic NFI 10% higher in 2007/08 at 79/ha Conventional NFI fell 27% to 40/ha Output fell for both farming systems Organic inputs down by 7%, increased for conventional LFA cattle and sheep Organic NFI up 46% to 215/ha in 2007/08 Conventional NFI similar at 77/ha Both inputs and outputs similar for both farm systems Support payments reach 48% of total organic output

Mixed farms Organic NFI 10% lower at 211/ha Conventional NFI also lower at 151/ha Organic livestock outputs up 15%, cropping output falling 2% Conventional livestock output similar, cropping up 43% Total inputs increased slightly for both

2008/09 Welsh costs of production Milk (ppl) Breeding beef (LW) Trading beef (DW) Lamb (DW) Org. Conv. Org. Conv. Org. Conv. Org. Conv. Total output 33.0 26.4 143 149 370 408 303 287 Total variable costs 14.4 12.5 89 102 125 174 158 173 Gross margin 18.6 13.9 53 47 245 234 146 114 Total fixed costs 7.8 6.7 194 121 250 168 199 142 Total costs 22.2 19.2 283 223 375 343 356 315 Net margin 10.8 7.2-141 -74-5 65-53 -28 NM incl. Support Payments 9.2 5.3 92 101 258 164 109 2 Data: FBS Wales, 2008/09

Conclusions for the future (1) Most organic farms out-performed conventional farms in 2007/08, often due to higher output prices Changes since 2007/08: Organic beef and sheep price premium now minimal Organic milk price already lower Organic cereal prices lower Organic hort. and poultry markets have reduced Lower feed costs for livestock farming

Conclusions for the future (2) Latest data shows conventional farm output has increased since 2007/08, organic has remained similar Organic costs of production often high, especially fixed costs due to lower physical output Organic farms more reliant on agri-environment support payments for income payments likely to reduce (Glastir in Wales from 2012) Organic farms are likely to remain at least as profitable as comparable conventional units in the short term, however it is unclear beyond this