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APC > Agriculture > Flashcards

Agriculture Flashcards

1
Q

What are five internal factors affecting farming?

A
  • Soil Condition and Soil type
  • Amount of Land
  • In hand farm or rented
  • Machinery and condition
  • Workforce and age/quality
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2
Q

What are five external factors affecting farming?

A
  • Commodity Markets and Market Prices
  • Environmental factors such as climate change
  • Weather - availability of water during the growing season
  • Consumer trends - change away from meat consumption
  • Politics & Global uncertainty such as the Ukraine/Russia war
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3
Q

What are the current prices of the following?

Feed Wheat?
Milling Wheat?
Feed Barley?
Oilseed Rape?
Feed Peas?
Feed Beans?
Cattle?
Lamb?
Pigs?

A

Feed Wheat - £269/tonne
Milling Wheat - £311/tonne
Feed Barley - £242/tonne
Oilseed Rape - £532/tonne
Feed Peas - £286/tonne
Feed Beans - £296/tonne
Cattle - 451p/kg
Lamb - 523p/kg
Pigs - 201p/kg

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4
Q

What are the dates for BPS submission and payment?

A

15th March - BPS application opens
16th May - last day to submit a BPS application
Payment dates are now in two tranches to aid cash flow
50% in July & 50% in December

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5
Q

What do you understand by the reductions in BPS?

A

BPS has been reducing from 2021 to its last payment in 2027
There are differing reductions depending on the claim amount. For someone earning above £150,000 in basic payment in 2021 this is reduced by 25% in 2021 & 70% in 2024. Further details of reductions post 2024 are yet to be published

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6
Q

What is a gross margin?

A

The Gross Margin of an enterprise is the output minus the variable costs

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7
Q

What is a variable cost?

A

Variable costs are costs that change as the output changes

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8
Q

What is the purpose of a break crop?

A

To break the cycle of weeds, diseases & pests & improve soil condition in terms of structure

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9
Q

What is the cost of fertiliser and how does this affect a gross margin?

A

Cost of fertiliser in September 2022 was £870/tonne, which is over double the price from September 2021. This negatively impacts the gross margin due to an increase in variable costs.

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10
Q

What does a Gross Margin tell you?

A

The gross profit or loss from a particular crop

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11
Q

What is a typical crop rotation for the area in which you work?

A

Winter Barley
Oilseed Rape
Winter Wheat
Spring Beans
Winter Wheat

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12
Q

What is the significance of including Spring Beans in a rotation?

A

They are nitrogen fixing so decrease variable costs and increase yields for the following crop, which in turn increase the gross profit to the farmer

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13
Q

What does nitrogen do?

A

Nitrogen supports plant growth

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14
Q

What is a typical gross margin for:

Winter Wheat?
Barley?
Oilseed Rape?
Spring Beans?

A

Winter Wheat: £1,550/hectare (8 tonnes)
Feed Barley: £1,200/hectare (7 tonnes)
Oilseed Rape: £1,550/hectare (3.25 tonnes)
Spring Beans: £950/hectare (4 tonnes)

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15
Q

What are typical diseases in Wheat?

A

Brown Rust
Yellow Rust
Septoria

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16
Q

What are diseases in Barley?

A

Similar to Wheat, also susceptible to Brown & Yellow Rust. Also Mildew & notably Rynchosporium (reduction in grain size)

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17
Q

What are the issues in growing oilseed rape?

A

Since the ban on Neonicitoids oilseed rape crops have been susceptible to cabbage stem fleas beatle, which feed on the plant and can completely wipe out areas planted with OSR.

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18
Q

What has the Agriculture Act done?

A
  • delinking and phasing out of BPS
  • The introduction of ELMS
  • changes to AG tenancies, such as removal of commercial unit test
  • public money for public goods
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19
Q

What questions would you ask the farmer on supplying a BPS claim?

A
  • What is the SBI number - does he have one, have they claimed before
  • Is there already an account set up with the RPA and who is registered as an agent on this
  • check the cropping rotations and use
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20
Q

What do you understand by delinking?

A

From 2024 payments will be delinked, where essentially the BPS scheme will end. Payments are delinked so you won’t need any land or entitlements to receive payments, delinked payments will be based on teh reference period - BPS 2020 - 2022 scheme year payments

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21
Q

What is cross compliance?

A

Cross compliance are a set of rules you must follow if you claim BPS or CSS

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22
Q

What does cross compliance involve?

A

It contains Statutory Management Requirements (SMR’s) and Good Agricultural and Environmental Conditions (GAEC’s)

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23
Q

How are the cross compliance rules policed?

A

There are random visits by RPA field officers, to check record keeping and compliance

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24
Q

What are the penalties under cross compliance non compliance?

A

Negligent non compliance - between 1-5% of claim, increased if keep on breaking the offence in subsequent claim years
Intentional non compliance - 20% reduction, but can be 100% dependent on severity

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25
Q

What is the BPS payment rate?

A

Non SDA area (severely disadvantaged area) - £233.30

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26
Q

Can you give me examples of SMR’s?

A

SMR 1 - Nitrate Vulnerable Zones - reduce water pollution from nitrates by storing fertilizer correctly in NVZ’s
SMR 2 - Wild Birds - Special protection areas
SMR 3 - Habitats and Species - protect flora & fauna in special areas of conservation

27
Q

Can you give me examples of GAEC’s?

A

GAEC 1 - Establishment of buffer strips along watercourses - maintain green cover within 2m of centre
GAEC 2 - Water Abstraction - must have a licence if abstracting 20 cubic metres
GAEC 3 - Groundwater - do not pollute groundwater
GAEC 7 - boundaries - keep green cover within 2 metres of the centre of a hedge, not to cut a hedge between 1st March - 31st August

28
Q

What is an NVZ?

A

A Nitrate Vulnerable Zone - Areas deemed at risk of agricultural nitrate pollution

29
Q

What is an SSSI?

A

Site of Special Scientific Interest

30
Q

What is ELMS?

A

Environmental Land Management Schemes, it is the new principal government subsidy for land owners after leaving the EU

31
Q

What does ELMS include?

A

There are 3 new schemes which form ELMS, which are:
1) The Sustainable Farming Incentive
2) The Local Nature Recovery scheme
3) The Landscape Recovery Scheme

32
Q

Have ELMS been launched yet?

A

The Sustainable Farming Incentive has been launched this year, with pilot schemes in 2021 as well.
The other two schemes haven’t launched fully yet.

33
Q

How will the Sustainable farming incentive work?

A

It will pay farmers for a set of standards. At present there are three standards available, which are:
1) Arable and Horticulutral soils
2) Improved Grassland Soils
3) Moorland

33
Q

What are the rates for SFI?

A

arable soils - £22 / hectare introductory
improved grassland soils - £28 / hectare introductory
higher rates for ‘intermediate’

34
Q

When will farmers be paid for SFI?

A

quarterly basis

35
Q

When can farmers apply for SFI?

A

Anytime the SFI is open at present and there is no close period. If RPA do need to close the application they will provide 6 weeks notice

36
Q

What is a recent article you have read in the Farmers Weekly?

A
  • Last weeks Farmers Weekly included an interesting article about the wariness of farmers to sign up to the new ELMS schemes. It highlighted a survey which showed just over 1,000 farmers had signed up to the SFI in 2022. More uptake in CSS.
  • Norfolk land classed as 3B getting turned down for solar on food production grounds
37
Q

What are the payment rates for AB8 and GS4?

A

AB8 - £628 per hectare
GS4 - £358 per hectare

38
Q

What is the requirement for AB8 seed mix?

A

It should contain 4 grass species, and 10 wildflower species.
The grass component cannot be 90% of the total
one flower variety cannot exceed 25% of the wildflower total.

39
Q

What is the requirement for GS4 seed mix?

A

It should contain 5 species of grass
It should contain 3 species of legume
It should contain 5 species of herb or wildflower

40
Q

What are prohibited activities under AB8?

A

There are none

41
Q

What are prohibited activities under GS4?

A
  • cannot use pesticides, and only spot treatment with herbicides
  • no inorganic nitrogen usage
42
Q

What do you need to do to show you have undertaken a CSS option?

A
  • Keep records - took pictures
  • Field operations to establish
  • Stock records to show grazing
  • a fertiliser management plan
43
Q

What is an appropriate seed rate for establishment?

A

8kg/acre - AB8
10kg/acre - GS4

44
Q

What other options did you consider for the land in CSS?

A

We also looked at AB9 - winter bird food. Nitrogen dependent and also could not graze.
GS2 - lower outcome in income (£132 / ha) - not what client wanted to achieve

45
Q

What was the establishment of the CSS options?

A
  • mow
  • plough
  • cultivate
  • drill
46
Q

What did you advise in terms of the availability for grazing?

A

The options did permit grazing, although this was restricted for certain periods of the year
AB8 - the AB8 land could be grazed between 15 August and 31 October each year
GS4 - the GS4 land could be grazed for most of the year except, a 5 week period between 1 May and 31 July

47
Q

What was your involvement with the contract farming agreement?

A

I have been involved with two. One was an arable CFA over around 100 acres of land in Hertfordshire. The other was more recent and was in relation to a dairy herd.

48
Q

What are examples of market pressures?

A
  • Ukraine/Russia war - effecting input prices and also sale prices
  • Recent UK political uncertainty - change in value of the pound
  • Consumer trends - away from meat eating
49
Q

What affects crop marketability?

A
  • Quality of product - bushel weight, proteins, moisture
  • Market prices at the time of sale
  • Demand for grain
50
Q

What was included within your farm budget?

A

The budget included the months of the year - Jan to December. And below that all Income and expenditure
Income included sale of grain, straw, sundry sales
Expenditure included fertilizer, seeds, overheads,

51
Q

What was the likely cost of a new roof on the agricultural building?

A

around £20,000

52
Q

What was the cost of the GRP over sheeting?

A

around £5,000

53
Q

What is a BP5 form?

A

submission form for BPS

54
Q

What is an RLE1 form?

A

a form to make amendments to the BPS application

55
Q

What is in a BP5 form?

A

Part A - name & sbi
Part C - field data sheet
Part H - entitlements

56
Q

What is in a RLE1 form?

A

Part A - name & sbi
Part B - transfer details
Part C - transfer of entitleetns
Part D - changes to areas
Maps

57
Q

What does FER stand for?

A

Farm Environment Record

58
Q

How would you undertake a CSS agreement?

A
  • log into RPA
  • ensure I am an agent on behalf of the clients SBI
  • download an application pack online
  • fill out the spreadsheet with field sizes, land summary and options
  • fill in two maps - FER map, options map
  • email to DEFRA
59
Q

What do you have to include in an annual claim?

A

declare no prohibited activities and confirm amount to be paid.
submitted before 16th May

60
Q

What if you miss the annual claim date?

A

You can submit before the 10th June but a penalty is charged

61
Q

In a CFA who is responsible for what?

A

Farmer - owns the land, responsible for purchasing seed, sprays, fert and other inputs & marketing of grain
Contractor - responsible for operations (labour machinery power), responsible to comply with obligations in the agreement - might include compliance with CCS/BPS

62
Q

How is the money distributed between farmer and contractor in a CFA?

A

The contractor receives a Basic Fee - typically on a per acre basis
The farmer received a Basic Return (or first charge) -
Any sirplus is then divided between the parties as per the agreement

63
Q

What would you expect to see in a CFA?

A

Details of the Farmer
Details of the Contractor
Details of the Farm
Commencement Date
Termination Date
Break Date
Basic Fee
Basic Return
Additional Fee

APC (10 decks)

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