Farm assurance premium

Location
Devon
There are plenty of threads discussing Red Tractor and it is well documented that the vast majority of farmers join through compulsion because there is no premium.
When freedom foods assurance started, a couple hours extra work to show I was complying with legal requirements, was fine to earn a 5p/ kg d/w premium.

The requirements and costs have grown considerably and the premium has disappeared so what I would appreciate in this thread is knowing what premium you would want to make the RT standards starting in November worth doing given the choice.

I would love to hear from every sector. There are no wrong or right answers as everyone will value their time etc. differently and it depends hugely on the quantities you sell.
 
As a dairy farmer I’d say a minimum of a penny a litre.

A penny a litre over cost of production that is, current milk price is 28ppl, consultancy firms who publish costs of production have been putting the cost of producing a litre of milk in the low 30’s for some time now, which is where the all aligned contracts that work on a COP basis are, and that’s before any of the recent price rises in commodities such as feed and fertilers filter through.

Would anyone from RT like to justify why they think it’s acceptable that farmers get paid below the cost of production for meeting their standards, a principle which should apply to all sectors.
 

An Gof

Member
Location
Cornwall
It’s a dangerous path. Once a premium is in place see the standards and cost of inspection ramped up so that the premium becomes diminished and just, if you are lucky, covers cost of compliance.
For smaller producers £2/t on cereals or 5p/kg on beef will hardly make it worthwhile and certainly not for the stress involved.
 

BrianV

Member
Livestock Farmer
Needs to be £3/ton here just to cover the cost of inspection. I'd guess £10 ton to make it palatable.
I'd far rather a free choice of destination, assured or non assured. ATM it's just a protection racket, without the protection or reward.......
RT will never attract a genuine premium, a difference in price will only be obtained by RT blackmail forcing non assured prices artificially lower, this would be considered criminal in many countries!
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
Needs to be £3/ton here just to cover the cost of inspection. I'd guess £10 ton to make it palatable.
I'd far rather a free choice of destination, assured or non assured. ATM it's just a protection racket, without the protection or reward.......
Agree. £3 to cover sprayer MOT, CPD points for operator, general messing about, printer ink and paper, my time.
RT crossed my mind yesterday as I was carting and drying. We do it all, continuously, as part of the job, as second nature. Why on Earth it needs formally monitoring and recording is beyond me. Tip a load, but check the floor before I tip, check the dryer, all the time etc. The RT bit is nothing more than a box ticking exercise. People who work on the ground know that.
If consumers really some kind of certificate of conformity then I’ll print and sign as many as they like but I can do it for FREE. I don’t need to pay somebody else to do the certification for me.
 
The problem is that the trade just don't want to pay a penny over. So any premium would be fabricated and open to manipulation by the people setting the fees.

I have a feeling that the trade do add premiums for farm assured if they are exporting though. But again, that's for their benefit and they would deny it anyway to keep the buying price down.
 

Wolds Beef

Member
There needs to a complete reallignement of pricing. For the vegetable and fruit and for all of us Livestock and arable boys. We need it to justify the paperwork and to justify the wages/salaries of staff and family. It will not happen so how do we force the issue. One way is to shorten the chain. Posters, banners and leaflets to get the public to shop local. There are several farm shops around here but we also need local facilities like abattoirs. And red tape needs to be looked at.
WB
 
Location
Devon
It’s a dangerous path. Once a premium is in place see the standards and cost of inspection ramped up so that the premium becomes diminished and just, if you are lucky, covers cost of compliance.
For smaller producers £2/t on cereals or 5p/kg on beef will hardly make it worthwhile and certainly not for the stress involved.

That is why I started this thread.

We are a long way down the dangerous path because most farmers have no choice.

If we have a choice it would be a simple financial decision to be assured or not and more importantly it puts the cost of those who want to make standards more onerous on those who have to pay a premium as farmers would drop assurance if not adequately compensated.

I also think it will be very interesting to see the financial effect on different sectors and sizes.
I rather fear some farm types are disproportionately affected.

A choice and a premium is essential as per the NFU's principles.
 
Location
Devon
There needs to a complete reallignement of pricing. For the vegetable and fruit and for all of us Livestock and arable boys. We need it to justify the paperwork and to justify the wages/salaries of staff and family. It will not happen so how do we force the issue. One way is to shorten the chain. Posters, banners and leaflets to get the public to shop local. There are several farm shops around here but we also need local facilities like abattoirs. And red tape needs to be looked at.
WB

Local facilities should remove the need for assurance. Everyone can see where their food comes from and can vote with their feet.

Assurance is a passed on cost because buyers used to visit farms to be sure they were happy and had the ability to offer a price based on the quality of farming. Farmers now have to spend a lot of time and money proving they are worthy. It is worth a premium.
 

Uggman

Member
Livestock Farmer
That is why I started this thread.

We are a long way down the dangerous path because most farmers have no choice.

If we have a choice it would be a simple financial decision to be assured or not and more importantly it puts the cost of those who want to make standards more onerous on those who have to pay a premium as farmers would drop assurance if not adequately compensated.

I also think it will be very interesting to see the financial effect on different sectors and sizes.
I rather fear some farm types are disproportionately affected.

A choice and a premium is essential as per the NFU's principles.
I'm sorry but we do have a choice just don't do it if no one does it there can't be a premium can there but you only need one person to do it and everyones got to do it. Just look at the lamb job.
 
Location
Devon
What would i have to do different to get a premium, my cattle are already home bred, feed whats grown on farm. I could sing to them!!!

That was my first thought, assurance on cattle isn't too bad.

But,

Membership fee
Vet's herd health plan
I will need to pay for and find time for 'How to inject' course.
Comprehensive record keeping
Feeds are likely to get more expensive
Be available for immediate inspection at any time
Be judged as to whether the whole farm is of 'an acceptable and tidy appearance'.
 
Last edited:

neilo

Member
Mixed Farmer
Location
Montgomeryshire
£2/ton would be a start for combinable crops.

Surely there’s a £5/t premium now, or rather a £5 deduction for non-FA generally.
As a small producer of cereals, selling less than 200t (only 80t last year!😢), that’s far from enough to make me consider it.

I only rejoined FA for lamb a few years ago in order to access dw outlets, which were consistently returning £5/hd over the live mart at the time, and to further access a premium contract.
If I was still selling everything live, I wouldn’t bother with FA as the premium is rarely there, although it does mean more potential buyers in times of surplus.
Lamb is relatively easy though, as compliance costs are negligible for most farms (or should be).
 

Update on the Sustainable Farming Incentive pilot

  • 85
  • 0
Update on the Sustainable Farming Incentive pilot

Written by Lisa Applin

Webp.net-resizeimage-3.jpg


In July, we opened the applications window for farmers to join our Sustainable Farming Incentive pilot.

The Sustainable Farming Incentive is 1 of the 3 new environmental land management schemes. It sits alongside the future Local Nature Recovery and Landscape Recovery schemes.

Through the Sustainable Farming Incentive, farmers will be paid for environmentally sustainable actions – ones that are simple to do and do not require previous agri-environment scheme experience.

We are piloting the scheme to...
Top