William Probert on livestock pressures.
January has started off with a bang 鈥� a sensational store cattle trade, ferocious fat cattle trade and barreners are breaking boundaries.
Although this all looks good on the outside, it is not always as it seems on the inside.
In late December 2022 and January 2023, we undertook three separate instructions for livestock and machinery dispersal sales.
The instructions derived from farmers struggling with their mental health, a result from the ever intensifying pressures of farming.
As a business, we at R.G. and R.B. Williams not only operate one of the only family owned and run livestock markets in the UK, but also run a large rural professional department with a high percentage of the work carried out relating to farm finance.
Despite cattle prices being at an all time high and lamb prices meeting a buoyant and consistent trade, end of year accounts are not showing the profit nor the cash availability that all farmers believed they would be in receipt of.
This is largely a result of the rising fixed and variable costs which outweigh the farmer鈥檚 gate price.
The ever increasing interest rates we have seen put severe pressure on many farming businesses, with more cash requirements required to maintain interest payments.
Despite the difficulties shown within the agricultural sector, we have witnessed as strong a demand as ever for agricultural land to rent.
This has been further exaggerated by the dry summer, with many livestock farmers short of fodder.
We have seen huge demand for any fodder and winter grass keep, seeing blocks of stubble turnips realise 741/hectare (300/acre) for a short-term let.
The pressures within the agricultural industry have never been more apparent.
Those struggling should ask for help and talk to others 鈥� a problem shared is a problem halved.
Auction markets play an important role for farmers鈥� mental health and well-being.
They serve as a fantastic venue for farmers to meet, socialise and conduct business with market day sometimes being the only time someone may leave the farm that week.
In Herefordshire we are fortunate enough to have a local charity, We Are Farming Minds, which attends local livestock markets offering support for farmers and creating events for farmers to attend and socialise.
Hoggs have been put under pressure in the first few weeks of January, with some autumn-bought stores looking to struggle to wash their face, a result of the support shown by many of our national supermarkets with shelves full of New Zealand lamb.
Stack it high, sell it cheap. Who needs food security? Do we need to eat?
The beef trade on the other hand has jumped substantially, with barren cows and clean cattle breaking records through the ring at Ross Market.
The increased confidence has certainly helped the January store cattle with increased numbers presented to catch the January trade.
Despite the uncertainty of the livestock industry we live by the below motto 鈥� 鈥榰ncertainty brings opportunity鈥�.
William Probert
William Probert is a chartered surveyor, agricultural valuer and auctioneer with R.G. and R.B. Williams Chartered Surveyors. Call 01989 567 233 or email [email protected]
