28/04/2011

The NFU has today warned farmers to take care with their forward crop commitments as the spring remains very dry through to the second half of April, while farmers in the South and East have expressed deep concern over the continued dry weather.

The Union pointed to spring/ summer a similar last year, when a similar dry spell had an effect on yields, particularly where soils did not hold enough moisture to see all crops through to maturity.  For a number of arable farmers, particularly those who had committed to grain pools or physical sales contracted forward, the disappointment of lower than hoped for yields at harvest was compounded by demands from merchants and cooperatives to fill committed tonnage, in line with contracts.

The union said grain traders advise that when a shortfall against committed or contracted tonnage is anticipated, discussing options as early as possible makes it far easier to work out a mutually acceptable deal between growers and traders. NFU chief arable adviser Guy Gagen said: “This spring we have recorded some of the driest weather in fifty years. By mid-April our members had been reporting slow and patchy emergence of spring crops and some signs of water stress developing for oilseed rape and some cereal crops.

“Marketing crops forward in a period of volatility can undoubtedly be a good way to help mitigate risk from downward price movements. With 2011 forward prices much higher than anticipated, many arable farmers have already secured tonnage for the 2011 harvest that enable them to improve chances of locking in a profit.  However, lessons from previous years like 2010 here, and from other countries with much greater yield fluctuations, show us when a deal has been done to secure prices, it is important not to overcommit crop, particularly in a rising market. Waiting until movement to discuss a shortfall on tonnage all too often results in the kind of solution that our members are very unhappy with.”

Eastern farmers hit particularly hard

Farmers in Norfolk and throughout the east of England are being hit particularly hard by the dry spell. Met Office figures show that this March has been the second driest since 1910 in the region. In East Anglia, many official stations have recorded less than 5mm and the forecast is for no rain “of any consequence” until May. Farmers in the region have taken to watering crops far earlier than usual.

Howevr, the Environment Agency said on Wednesday (27^th April) that, while river levels were “slightly below” normal, there had been no reports of distress to fish or wildlife so there are no plans to restrict farmers’ abstraction licences.

Farmers in Oxfordshire have also expressed fears that their crops could be affected unless there is substantial rain in the next fortnight. Charles Dingwall, regional NFU chair and arable farmer told the BBC that cracks in his land were a "condition of drought."Dingwall said he fears for his crops as irrigation is "expensive" and "nobody's got the equipment to irrigate."