News from AgriWales - A blog about everything and anything that's happening
FRS102 and FRS105 are the financial reporting standards that set out how accounts should be prepared for UK entities and micro-entities. The standards, which became effective for financial year-ends on or after 1 January 2016 (1 January 2015 for medium-sized companies) are mandatory for all farming businesses trading as a limited company and are therefore submitting annual accounts to Companies House.
The Institute of Chartered Accountants in England and Wales (ICAEW) Farming Community recently released the results of a survey it conducted amongst members which looked at the effect the adoption of FRS102 and FRS105 has had on farm accounts.
Some of the key findings are:
While increases in product prices slowed in June, the overall market value for milk increased. This was mostly due to firm cheese markets, and a continued shortage of fresh SMP. With increases for both AMPE and MCVE, the Milk Market Value (MMV)1 increased by 0.4ppl between May and June.
Historically, movements in the MMV are reflected in farmgate price changes three months later, leading to an expectation of positive movements in farmgate prices into September. Recent price announcements reflect this, with many buyers increasing milk prices through the summer months on the back of the rising value of milk through the spring.
Roger Parry & Partners will hold their annual Straw Sale this month on behalf of the More Farm Partnership, in Lydham, Bishops Castle.
The sale will take place at More Farm in the farm yard on Tuesday, 10 July 2018, starting at 7pm. The full sale particulars are on the Roger Parry & Partners website: www.rogerparry.net under the latest news and include: 249.23 acres of straw, divided into conveniently sized lots; 60.54 acres of winter wheat; 71.14 acres of winter Barley; 50.58 acres of Spring Barley and 66.96 acres of Oil Seed Rape.
With a particularly high standard of crops so far this season, Roger Parry, the auctioneer for the sale, believes there will be a lot of interest and a high turnout of buyers.
FUW welcomes Glastir derogations approval as hot weather continues
The Farmers’ Union of Wales has welcomed the Welsh Government’s agreement to its request for derogations to be allowed where certain Glastir rules are adding to problems caused by the hot weather.
The FUW had written to Cabinet Secretary Lesley Griffiths highlighting how problems caused by the extremely wet weather experienced from last summer onwards were being exacerbated by the subsequent long period of dry weather.
Farmer across Wales have reported that silage and hay crops have been particularly badly affected, with quality and quantity deteriorating with each day that passes in the current hot weather.
For those in Glastir agreements, such problems are compounded by restrictions which limit farmers’ ability to make up for such impacts, most notably the restriction on taking crops before the 15th July.
Enthusiasts gathered to mark the famous all-terrain vehicle's 70th anniversary
Hundreds of Land Rovers made their way to Anglesey for an emotional return to the vehicle’s birthplace on its 70th anniversary.
It is said that Maurice Wilks, the designer of the famous all-terrain vehicle, first drew the outline of the design in the sand at Red Wharf Bay, where he owned a farm.
His dream was to build a vehicle...
The Farmers' Union of Wales has welcomed an announcement by First Minister Carwyn Jones that £2,150,000 of the Welsh Government's EU transition fund will go towards helping livestock farms prepare for Brexit.
Speaking shortly after the announcement was made at the FUW's annual general meeting today (Monday, June 18), FUW President Glyn Roberts said:
"We welcome the fact that one of the first EU transitional fund projects to be announced relates to the livestock sector which is so important to our economy and communities."
The investment will allow farmers to assess the financial status of their businesses in order to help prepare for Brexit.
NFU Cymru has today welcomed the First Minister’s announcement on investment (£2.15 million) into the red meat sector in Wales.
NFU Cymru President, John Davies said: “When we became aware of the details of the EU Transition Fund earlier this year, NFU Cymru, in meetings with the Cabinet Secretary, raised the possibility of using the fund to provide support to the red meat sector in Wales, in a similar way to how the EU conditional aid scheme was used to help the dairy sector in 2017. Therefore we very much welcome today’s announcement by the First Minister.
“We hope Welsh Government will now work with the industry to develop the detail of the scheme to ensure that the information that will be required from producers is easily obtainable and that the support can make a meaningful difference on farm.
JUNE 2018 - LEGAL UPDATE
Cars, vans, motorcycles and other light passenger vehicles are no longer required to have an MOT if the vehicle is more than 40 years old and has not been substantially changed in the previous 30 years. The rules changed on 20 May 2018 and will apply to vehicles from the 40th anniversary of when they were registered. However, to tax the historic vehicle (even where the vehicle is fee exempt) a declaration has to be made to the effect that it meets the rules for not needing an MOT. All vehicles must be kept in a road worthy condition. Failure to do so can result in a fine up to £2,500.00 with three penalty points for using a vehicle in a dangerous condition.
Bereavement Support Payment
Bereavement Support Payment is payable to a surviving husband, wife or civil partner and is paid as a one off, lump sum payment followed up by up to 18 monthly payments. There are two separate rates being a “standard rate” or the “higher rate” which depends upon your circumstances.
A Welsh dairy farmer is on the lookout for a budding new entrant to take on his farm as he strives to hold on to the legacy of his farmer son.
Egan Carlisle of Llainrhydwen, Newcastle Emlyn, helped his son Owen build up a successful dairy business before he took his own life following an ongoing battle with mental health issues.
Exactly one year on from the incident Mr Carlisle has joined forces with Farming Connect’s Venture programme to find a young dairy farmer who wants to get a foothold in the industry.
Welsh researchers hope the new technique will pin-point fields where livestock are most at risk.
A new technique which identifies snail DNA in water is being hailed as a breakthrough in the fight against fluke on Welsh farms.
Researchers envisage the screening test will change Wales’ approach to one of the livestock industry’s most endemic diseases.
In a study on five Welsh farms, the technique was so effective it identified mud snail DNA in habitats where researchers failed to find any snails.
Roger Parry & Partners are urging farmers to use the recent introduction of new Renewable Heat Incentive (RHI) measures to review their heat strategies as there are economic advantages, as well as wider environmental benefits, to be had.
The long-awaited reforms of the RHI passed their final parliamentary hurdle last week [22 May 2018] and have been implemented with immediate effect. The initiative, originally launched in 2011, has been instrumental in kick starting the UK’s push towards a target of 11% of its heat requirement coming from renewable sources by 2020.
Richard Corbett, Partner with Roger Parry & Partners, said, “The new government policy opens up opportunities for farmers in England and Wales, most notably, tariff guarantees for certain systems will provide certainty to projects with long lead-in times. The measures will also increase the viability for anaerobic digestion projects, where tariffs are due to increase.
“However, with any new government policy it will also bring challenges to farmers including those that have diversified as wood fuel drying, waste drying/processing, and domestic swimming pools have been removed as eligible uses of heat and there’s new Biogas/biomethane feedstock restrictions.”
The new package of measures introduces a range of regulations affecting both the RHI scheme introduced in 2011 and the domestic scheme which was introduced in 2014. They include:
Leaders of over 100 organisations from across the nation's food supply chain have put their names to a manifesto setting out the key principles that can help ensure Brexit is a success for the supply of food in the UK.
The UK Food Supply Chain Manifesto, released today, has been drawn up by organisations representing farmers producing the raw ingredients and their suppliers, right through to manufacturers and retailers. It sets out the need for positive outcomes on trade, labour, regulation and domestic agricultural policy.
UK Food Supply Chain Report
With little more than 10 months to go before Brexit, the manifesto emphasises the importance of ensuring our departure from the EU does not undermine the food production and supply sectors in the UK.
Farmers can see how the genetic merit of their herd compares against the rest of the industry. The measure has been added to our list of key performance indicators (KPIs) which are crucial to performance on farm.
The simple set of KPIs for all year round and block calving systems were created last year as part of our Optimal Dairy Systems programme, to encourage farmers to benchmark and highlight areas for improvement.
Access the full set of KPIs and online calculator here
A new highly sensitive and specific blood test for bovine TB, Actiphage, has been accepted for exceptional private use in England.
The Animal and Plant Health Agency (APHA) said the test could be used in cases where a farm has had an ongoing chronic bovine TB problem.
For the full article see: https://www.fginsight.com/news/top-stories/new-highly-sensitive-bovine-tb-test-approved-by-apha-61476
EXPLORE YOUR LOCAL FARM
Hundreds of farms across the country are throwing open their farm gates soon for this year's Open Farm Sunday event, on 10 June. It's a great opportunity to explore your local farm and see first-hand what goes into producing the nation’s food.
Lots of different activities will be on offer, from tractor rides and farm walks, to farm demonstrations and a chance to meet the animals, so pop the date in your diary now for a fun day out with the family.
The only window for the Welsh Government's Young People into Agriculture Scheme is open now! 150 farmers are being offered start-up aid of up to £40,000 but expressions of interest must be made before 12th June 2018.
For more information, including the guidance notes and selection criteria see:
Buying British produce from British farmers will be just as important after Brexit as it is now according to an MP.
But has urged people in Montgomeryshire and the UK to keep buying local after Brexit.
He said: "I think it is always the case that you need people to buy local, and that is what I want to happen after Brexit.
"In Montgomeryshire and Powys farming is a big part of the economy, and we want that to continue.
"I think it will be the same message, for people to continue to buy local regardless of Brexit."
The National Farmers' Union wants to see the planned new farming policy after the UK leaves the European Union allow consumers to enjoy more sustainable, quality and affordable British food, whatever their income.
Did you know that if you have Japanese Knotweed on a property or even nearby, it is now necessary for a mortgage provider to have a Japanese Knotweed Survey and Management Plan before they agree to lend...
Farming budgets for the devolved nations are unlikely to be cut after Brexit because of the unpopular Barnett Formula used by the UK to distribute cash, Defra Ministers have hinted.
Many farm businesses diversify from traditional farming to other related activities such as livery or hay making for horses. This may be a result of lifestyle changes or perhaps other potential incentives aligned with the Government’s so called Green Brexit.
In such circumstances, they need to be aware of the impact that such a change could have on their entitlement to tax reliefs particularly inheritance tax.
Agricultural Property Relief (APR) can enable a farmer to pass qualifying property, either during their lifetime or as a part of their estate, free of capital gains tax and inheritance tax.
While property that is used to grow crops or to rear animals is quite clearly agricultural property, hay making for horses can mean that the land does not qualify as agricultural. This could prove a target for HMRC looking to deny APR claims. This follows a recent case in which HMRC sought to deny Business Property Relief to a livery business.