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RICS APC - Rural Pathway Autumn 2024 > Agriculture - L2 > Flashcards

Agriculture - L2 Flashcards

1
Q

What was the stocking density that you recommended for the grazing licence?

A

Based on that the licence only permitting sheep to be grazed, the stocking density was 20 per ha based on rotational grazing

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2
Q

What was the cropping rotation on the farm you did a ag statement for?

A

WW, 2nd WW, Stubble turnips / cover crop, Spring Barley, OSR
Quite intense but good agricultural ground and good yields
WW = 10 tonnes (milling) £220 per tonne
2nd WW = 9 tonnes (feed) £180 per tonne
Stubble turnips = grazed
Spring Barley = 7.5 tonnes £150 per tonne
OSR = 3.7 tonne £380 per tonne

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3
Q

What storage capacities did you use?

A

Referred to ABC -
Wheat = 1.35 m3 per tonne
Barley = 1.45 m3 per tonne
OSR = 1.45 m3 per tonne

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4
Q

What was the rent for the FBT and how did you come to that figure?

A

Rent was £150 per acre which was established using comparable evidence. This is on the higher side but the land was grades 1 and 2, therefore higher yielding and likely to be more profitable.

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5
Q

How did you value the silage / hay / straw in your ASV?

A

These were all home produced and accurate costs were available to me, therefore the cost of production was used.

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6
Q

What rules dictate a stock taking valuations?

A
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7
Q

How do you consider home produced in an ASV?

A

There was not accurate production costs of these animal available, therefore i establish the market value of those animals, then applied the deemed cost method (60%).

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8
Q

What is grass silage?

A

Chopped grass that is then usually clamped and fermented to encourage more sugars to be released. It is used as winter feed for cattle.

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9
Q

What is an NVZ?

A

A nitrate vulnerable zone is a designated area that is at risk of agricultural nitrate pollution. Rules are imposed on farmers such as, closed periods where they are not permitted to spread organic manures, strict record keeping of spreading, livestock on farm, slurry stores and risk maps.

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10
Q

What is a killing out %?

A

Determines how much saleable carcase weight is obtainable.
Cattle - 55%
Pig - 75%
Lamb - 45%

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11
Q

What is the Gross Margin for winter wheat (Feed)?

A

Average yield = £8.3 tonne per hectare
Price = £175 per tonne (£1,450 per ha)
Straw = £188 per ha
OUTPUT = £1,640 per ha

VARIABLE COSTS = £655 per ha

GM = £985 per ha

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12
Q

Why do companies need an ASV?

A

The reason for valuing stock at the end of an accounting period is to identify and carry forward those costs incurred before that date but which will not give rise to income until a later period. By carrying forward those costs they can be matched with the income when it arises.
Either for taxation purposes or general accounting.

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13
Q

What is the basis of valuation for an ASV?

A

A figure which represents the cost, or if lower, the net realisable value of the stock.
Or sometimes market value, depending on circumstances.

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14
Q

What could happen if you carry out an ASV which is incorrect?

A

Penalties can be due from HMRC.

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15
Q

What does good husbandry mean?

A

The responsible management of agricultural land, crops and livestock in a way that is sustainable, productive and environmentally responsible

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16
Q

Can you name 3 local sheep breeds?

A

Romsey, Texel and Southdown

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17
Q

Can you name 3 beef breeds?

A

Aberdeen Angus, Sussex and Simmental

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18
Q

Can you explain what a typical farming system would look like in your area?

A

Typically mixed arable and livestock, with very little dairy now.

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19
Q

What would be a typical beef system in your area?

A

Usually one of the following 3:
Suckler - where calves are bred on farm and sold either as calves, stores or finished.
Stores to sell - where calves are bought in and sold again when around 15-18 months old to larger finishing units.
Finishing - purchase 15-18 month old cows to finish for slaughter.

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20
Q

What would be a typical sheep farming system in your area?

A

Most breed their own for slaughter. Very few buy in store lambs.
Lamb indoors usually due to lowland ground conditions, although those on the South Downs do tend to lamb outside.

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21
Q

What is a shearling?

A

Also known as a hogg - a young sheep / lamb who is weaned but hasn’t been sheared yet. Usually 9-18 months old.

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22
Q

Can you give me some varieties of wheat?

A

Skyfall, Crusoe, Zyatt

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23
Q

Can you give me some varieties of Barley?

A

Buccaneer, Electrum, Bolton

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24
Q

Why was a grazing licence application, rather than a farm business tenancy?

A

Firstly, the Licensor remained in management control of the land, and also grazed a couple of horses, so exclusive occupation was not to be granted.
Secondly, the Licensor wanted the agreement to be temporary and terminable on a relatively quick and easy basis.

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25
Q

How would you have terminated that grazing licence?

A

Each grazing licence is different and there must be a clause stating how it can be terminated.
Within this licence in particular, either party could terminate the licence with one months notice.

26
Q

What was the licence fee agreed?

A

£40 per acre, which is relatively strong however the ground was good, with good quality pasture and good fencing.

27
Q

How was the water usage recharged within the grazing licence?

A

On a per head basis. According to AHDB, a ewe requires 4 litres per day.

28
Q

What is the biggest problem facing the growth of oilseed rape?

A

Fleabeetle has become a large problem due to neonicotinoid pesticides being banned in 2018. Fleabeetle essentially eats the OSR in its establishment stage, which sometimes cannot be recovered from.

29
Q

You mentioned stubble turnips in your arable crop rotation, what SFI options could be applied to this?

A

CSAM2: Multi-species winter cover crop @ £129 per ha
Establish a multi species cover crop over the winter months to protect the soil surface and provide roof growth to benefit soil structure, in conjunction with regen ag methods.
Rotational options available on arable land.
Establish between the harvest of one cash crop, and the establishment of the next.
The seed mix must contain 2 species from 2 or mor brassica, legume, cereal or grass, or herb families.
Cannot destroy more than 6-weeks before establishment of spring crop.

30
Q

What is the general trend in beef markets at the moment?

A

Generally rising, with prices still increasing, however still uncertain what the affect of bluetongue is on the market.

31
Q

What is the general trend in lamb markets at the moment?

A

Supply is reduced this year, and prices are easing, however this is typical for the season as most lambs are ready, so supply at the moment is strong. Still uncertain if bluetongue is going to affect the market.

32
Q

What is the general trend in arable markets?

A

Relatively fluctuating die to global conflicts.

33
Q

What is the price of fertiliser at the moment?

A

Granular urea is £350 per tonne

34
Q

What did the Agriculture Act 2020 do?

A

Reform agricultural subsidies (BPS ceases in 2027, ELM’s rolled out / transition period) - public money for public goods

Focus on animal welfare - traceability and identification of animals
Rent reviews under AHA - parties can now choose to appoint an arbitrator (determination) or third party (can be merely facilitative) before the rent review date.

Rent reviews under AHA - changes to how tenant’s benefit from landlord improvements where the tenant is making payment towards that improvement

Disputes under AHA - now can be referred to CAAV and Agricultural Law Association.

Abolishment of retirement age - 65 is scrapped and replaced with pensionable age

Commercial unit test scrapped 1 September 2024 - replaced by a business competency and relevance to age is removed. A persons likely capacity to farm the holding commercially, to a high standard of efficient production and care for the environment.

35
Q

What does the Agriculture Act 2020 regulate?

A

The government now has a duty to report on food security every 3 years. This prompted the establishment of a permanent Trade and Agricultural Commission.

36
Q

What is rotational grazing?

A

The paddocks are split and grazed on a rotational basis, allowing them time to naturally generate.

37
Q

What is mob grazing?

A

High intensity grazing with high stocking rate for a short period of time. Can ‘kick start’ areas that are weedy etc as it causes effective regeneration if done properly.

38
Q

What is set stocking?

A

Grazing livestock for an extended period of time, so it is rarely rested.

39
Q

How would it have been handled if a dispute has arisen during the licence agreement?

A

Within this licence agreement, it was explicit in stating that any disputes arising shall be referred to mediation first. This could then be accelerated to CAAV dispute resolution service to appoint an arbitrator.

40
Q

What is the maximum size of an agricultural building allowed under permitted development rights?

A

1,500 sqm if the holding size is over 5 hectares.
1,250 sqm if the holding size is under 5 hectares

41
Q

What was your justification for the need for the grain store within your justification statement?

A

The farm was a large arable enterprise producing approximately 2,500 tonnes of grain each harvest, yet did not have adequate storage to enable them to obtain better prices at different times of year.
The capacity of the proposed building was 3000 m cubed, meaning that it provided storage for 95% of the winter barley produced, and 68 %of the winter wheat produced in that harvest.
In addition, due to the size of the newer machinery and trailers, these could be tipped in the new barn rather than tipping outside and being handled again to get the grain in the lower smaller stores.

42
Q

What is the storage requirement for wheat?

A

1.35 m cubed per tonne

43
Q

What is the storage requirement for barley?

A

1.45 m cubed per tonne

44
Q

What was the total storage capacity of the new barn?

A

Assuming both bays were for winter wheat, the total storage capacity was 2,200 tonnes.

45
Q

What is a prior notification application and how did it work in this instance?

A

A form submitted to the local planning authority, in this instance was the south downs national park, notifying the council of planned agricultural development that was covered under PD rights. The council has 28 days to respond, if no response, then the development can be proceeded with.

46
Q

What is a Notice of creation?

A

Unser section 1 (4) of the Agricultural Tenancies Act 1995, it is advisable to serve a Notice of creation before the commencement of an FBT to confirm that the parties intend for the occupation to be an FBT and the character of the property will be primarily agricultural.
The tenant must sign one, and it is advisable that the Landlord also signs one.

47
Q

What are the conditions of an FBT?

A

Granted on or after 1st September 1995
All or part of the land is used for trade or business, which will continue throughout the tenancy
Either the character of the tenancy is primarily wholly or agricultural, or the landlord and tenant have exchanged notice of creation.

48
Q

What is meant by Grades 1 and 2 agricultural land?

A

These are the highest two grades of productive land under the Agricultural Land Classification, meaning they are excellent or very good, with little to no limitations to agricultural use. A wide range of crops could be grown due to soil health, topography and local climate.

49
Q

Is a stocktaking valuation a Redbook valuation?

A

Yes, it must comply with the Redbook, IVS and be signed off by a registered valuer.

50
Q

In a stocktaking valuation, when should net realisable value be used instead of cost?

A

Where it is less that the cost.

51
Q

What value did you allocate to the beef cattle of varying ages?

A

The cattle were Aberdeen Angus and were both suckler and stores.
The most productive suckler cattle were valued at £1,100
The store cattle of approximately 12 months were valued at £1,600 each

52
Q

How did you value the fertiliser in stock?

A

Based on the invoice produced.

53
Q

Can you explain a typical stubble to stubble in your area?

A

Following Harvest, plough, cultivate, drill, (roll if no roll on drill), post-em fert, then dormant - spring fert and sprays (herbicides and pesticides), then potentially spray off crop (if OSR), then harvest

54
Q

Can you outline a sheep farming year?

A

September - check condition of breeding ewes and feed accordingly
October - rams put out with ewes (1 ram : 40 ewes average)
December (ish) - scanning and split into groups according to expected lambs and feeding requirements
March - lambing (although can lamb anytime from Christmas to April)
May - shearing
August / September - dependant on weight, lambs sold for slaughter.

55
Q

How long is a ewe pregnancy?

A

145 days

56
Q

What types of calving systems might you see?

A

Autumn block, spring block, or all year round.
Generally calving inside.

57
Q

What are the methods of assessing value within a stocktaking?

A

Cost / deemed cost
Net realisable value
Herb basis

58
Q

How do is Agricultural Graded land assessed?

A

Climate, soil and topography.

59
Q

What is the most common Land grade seen in your area and what is it most suitable for?

A

Grade 3 - moderate quality
Generally grassland, can be arable but would be expected to produce average yields.

60
Q
A

RICS APC - Rural Pathway Autumn 2024 (19 decks)

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