Farm Diary

Most of the new grass lays we drilled in the autumn look very good, but the fields which were drilled late have failed, and will need re-drilling this spring; we shall get on with that task in early April.

I shall get on with spreading Nitrogen on the grass as conditions allow, and when it dries up once more, we will apply some more dirty water to silage fields.

I spent a few hours in New Zealand House last week in the company of this year's 'Nuffield Scholars', where the British group were joined by the international Scholars. The penthouse area of NZ House offers one of the best views in London, and as the NZ Ambassador commented 'You can see 80% of the 'Monopoly' board from here, and the price for passing 'go' these days is 700,000 per annum; for life'!

We had a very good evening, and there are some interesting subjects being studied, such as 'succession planning in agriculture'.

A stark contrast to that positive experience was the meeting of all farming unions representing dairy farming in Brussels last week. Many countries in Europe are experiencing severe difficulties, with very low milk prices of around 18p per litre.

To add to this difficulty, Spain, Austria, Latvia, Lithuania and Greece have dairy farmers whose milk is not being picked up at all, as dairy companies abandon badly located farms, or cut down on the amount of milk they collect as they have no market.

Northern Ireland dairy farmers are in serious trouble. Exposed to commodity prices, their on farm milk price is now 16p per litre, and as many have borrowed heavily to comply with the 'Nitrogen Vulnerable Zone' regulations, building slurry stores to store all muck and slurry for at least five to six months, there is real trouble.

Some have built extra housing and expanded their herds at the same time, and it looks as if some farmers are facing bankruptcy. There was much anger and frustration in Brussels, and I had my hands full as Chairman, attempting to prepare our position for the next day.

At the Advisory Committee the next day, yours truly had the task of conveying these difficulties to the Commission, and arguing the farmer's case; watched by representatives of most countries!

Commissioner Rasmussen and I had an interesting exchange, as he maintained that the market has to decide supply and demand, and I countered that exceptional times required short-term exceptional measures. I did manage to persuade the Commission that they should take a long hard look at margins within the supply chain, and that if margins were more fairly distributed, farmers would not be in such trouble,

There have been protests and strikes in some countries, especially in the East. Latvia has seen so much unrest that they lost their Agricultural Minister and then the Government!

Lithuania has had farmers and tractors blocking the roads, with some unrest in Poland. Greece and Cyprus are all in trouble as cheaper imports force their prices well below the cost of production, and Finland is experiencing the same problem.

Countries outside the 'euro zone' have benefited from currency de-valuation, and have taken advantage of their more competitive position, exporting milk and dairy products.

Looking at the world, where Australian prices have dropped 40% and New Zealand 30% (weaker currency has stopped it being worse), USA prices have dropped around 40%, the global recession, especially in developing countries, coupled with the very high prices of 2007, has curtailed demand for the time being.

Lack of cash for traders, and the inevitable wait to see where the bottom of the market is likely to be, has delayed recovery, but it might be on the turn. I was told by traders in Brussels that the market is a little more 'lively', and the latest NZ Co-op Fontera's auction price improved slightly. The question will be how soon the market can recover.

Production is falling all around the world, but the stocks being held in different countries will overhang the market for some months. However, when prises start to rise, and the short-fall becomes apparent, traders will pile in and we will be back on the roller-coaster.

Such volatility is not a good thing, but is inevitable when 96% of all dairy produce is consumed 'at home' leaving very small volumes of tradable product across the world. One half of one percent of all milk produced in the world either way, up or down, is the difference between the highs of 2007 and the lows of 2009.

Having had my farm and house broken into recently just like countless others, I read with disbelief that a motorcyclist from Devon was locked up for six months for speeding.

Was 122 mph too fast? Yes. Was it irresponsible to do this with his 14 year old son on the back of the motorbike; in the rain? Of course it was, but 6 months of prison? With no one injured, no accident caused, and a 47 year old man with no previous conviction; motoring or otherwise; where is the sense of proportion? He has been disqualified for 18 months and will need to re-take his driving test.

Is that not enough? Prison sentences for motoring offences such as these shows the country has gone completely mad. With the appalling crime rate, lack of confidence in the police force generally, does targeting motorists (and throwing the book at them) help?