Land, milk and politics puzzle

Many predicted that the resolution of Single Farm Payments would be the main factor. However the continuing confusion over Single Farm Payments and the number of outstanding issues and frustration has certainly not removed this hurdle.

I was talking to a large cross-border farmer recently who has received 80 per cent of his Welsh payment but none of his English payment. He is now taking this up with his MP having exhausted all other channels; he is not alone.

Despite many similar tales, there are a few more farms and blocks of land coming on the market this spring. The reason certainly is not resolution of SFP, it is mainly due to something far deeper. The National Audit Office reported farm incomes up seven per cent in real terms during 2006 due to higher cereals, potatoes and cattle prices.

However for much of Shropshire, Staffordshire and Cheshire this comes as little solace to dairy farmers. Squeezed by higher feed, fertiliser and fuel costs and with no prospect of any milk price increase, there is a degree of gloom and despondency.

While many expand, far more are considering getting out. The politicians say this is what the industry needs.

Beneath it all may be a fundamental political issue. Milk forms one of the principal components of the basket of commodities in the retail prices index. This is one of the Chancellor's main economic thermometers. Increase the price of milk and you make a more than proportionate increase in inflation.

The reasons for low milk prices are largely academic to most dairy farmers who have little or no means of influencing prices. However, after too long of too low prices, many are now considering selling their farms, or at least giving up milk.

Barbers have had record numbers of dairy cows through the Livestock Market week on week, mainly through those going out of milk.

For more details contact Barbers on 01630 652314 or www.barbers-online.co.uk