IAgrM Annual Review 2022

www.iagrm.com | 1 ANNUAL REVIEW 2022

www.iagrm.com | 3 2 | events@iagrm.com CONTENTS CHAIRMAN’S FOREWORD 3 CHAIRMAN’S FOREWORD 4 SCIENCE AND TECHNOLOGY: THE FUTURE 5 THE IAgrM LEADERSHIP DEVELOPMENT PROGRAMME (LDP) 6 ECONOMIC PROSPECTS 7 MANAGEMENT: ART, SCIENCE AND IMPACT? 8 THE HEALTH ANDWELL-BEING OF OUR FARMING COMMUNITIES 9 BRADFORD ESTATE HOSTS 2022 NATIONAL FARMWALK 10 INTERNATIONAL FARM MANAGEMENT CONGRESS 12 2022 CONFERENCE GOES FROM STRENGTHTO STRENGTH 14 UK HORTICULTURAL SUPPLY CHAINS: AREWE AT A TIPPING POINT? 16 NEW RESEARCH FINDS SUPERMARKETS’ BUSINESS MODEL IS ON KNIFE EDGE 17 CONTACT FARMING, A SCOTTISH ALTERNATIVE 18 FARM BUSINESS STRUCTURE CONSIDERATIONS 19 AGRICULTURAL MANAGEMENT AWARD 20 TRAINING AND RECRUITMENT 21 BASIS ENVIRONMENTAL ADVISERS REGISTER 22 MAKING SENSE OF PUBLIC AND PRIVATE ENVIRONMENTAL MARKETS 23 SUSTAINABILITY THROUGH ENVIRONMENTAL PROFESSIONALISM 24 MEMBERS LIST 35 IMPORTANT DATES FOR 2023 It gives me great pleasure to reflect on another excellent year for IAgrM in my first year as Chair. Membership continues to grow, and we are consolidating our long-established position as the professional body for agricultural, rural and environmental management. Never before has promoting professionalism, CPD and lifelong learning been more important, and the Institute is committed to working with others across the industry to deliver these important goals. I am also delighted to welcome Lord Taylor of Holbeach as our President, and to thank the Earl of Iveagh for his long-standing support of the Institute over the past decade. Lord Taylor has already taken a very active role, making introductions for the Institute inWestminster, and participating in our annual conference and leadership alumni dinner. I look forward to working with him closely over the coming year. The National Farm Management Conference sold out about three weeks before the event and was one of our largest events of recent years. Over 400 people squeezed into the QEII Centre in London for a packed and varied programme. A huge thank you to everyone who worked so hard to make this a success, particularly John Giles, Victoria Bywater, and the team at Cooksley and Co. who ensured the event ran seamlessly. Sadly, we had to postpone our Fellows and Professionals Lunch in the autumn owing to the passing of her late Majesty, Queen Elizabeth II. We look forward to re-arranging this for 2023 when diaries permit. It is heartening that after the hiatus of COVID our branch network is becoming re-invigorated and there are many varied events and talks planned over the next few months. Please do support your local branch – and if possible others – all of our regional activities are now being promoted on the Institute website. If you have any suggestions for branch development, please speak to the office or a member of Council. I am keen that we strengthen and develop our branch network during my time as Chair. Most importantly, a reminder that IAgrM exists to support our members. Council would be grateful for feedback from our members across all of our grades and branches on what we can do to develop and enhance our relevance and value to you and your businesses. Finally, I would to thank all of my fellow Council Members in particular Richard Price (Vice-Chair) and Tom Brunt (Treasurer) for all their hard working in ensuring effective management and governance of the charity, and to Victoria and her team in the office for ensuring everything has run so smoothly. Wishing you a prosperous and successful 2023. Carl Atkin-House Institute Chair Carl Atkin-House PFIAgrM Climate Asset Management

www.iagrm.com | 5 4 | events@iagrm.com Good agricultural management will embrace the appliance of science and technology. It has much to contribute and the need to do so has never been greater. I am privileged to belong to the All Party Parliamentary Group on science and technology in agriculture. Hard work, good decision making and team management are still ingredients for success in farming and growing, but the appliance of science and technology is essential. For example, the decision by parliament and government to enable gene editing can only boost plant breeding with opportunities to extend seasons, improve disease resistance and so reduce chemical use, and improve taste and quality. We have leading plant breeders and research institutes. At the end of September I went to Lincoln University’s campus in my home town of Holbeach to see the opening of the Hub of the Food Enterprise Zone. This extension of the facilities is for start-ups and to further the take up of agricultural technologies. It complements the National Food Manufacturing Centre which has been in Holbeach for some time. Robotics are increasingly part of growing, harvesting and processing techniques. As our recent education seminar taught us, these and other developments need to be matched by an increasingly skilled management and a labour force literate in technology. There are times when significant events come one after the other. Brexit has been hugely disruptive of the political process and the economy for us in agriculture and horticulture. It was closely followed by Covid, lockdowns, unexpected government spending and economic aftershock. In February, Russia invaded Ukraine and the fuel crisis has followed. A weekly shop quickly shows the consequences to the cost of living.We have what Andersons refer to as ‘agflation’ but, analysis shows food is at the bottom of the list of percentage prices increases.We know from experience that governments and consumers do not want to choose between the public interest and cheap food; they want both - and not just cheap but wholesome too. Most recently when mourning the death of our Queen, it was easy to hanker for the relative stability of the post war years. No time sinceWorldWar II has seen the pressures we face now. However, in the Elizabethan age the shape of our industry changed so that those who were farming 70 years ago would scarcely recognise the world we live in today. Now, we must be prepared for considerable change and the need for innovation to accelerate. Governments can assist us with this task, for example, in recognising energy costs for our industry and using regulation in a positive manner to enable the industry to prosper and grow. For instance, much can be achieved through the Extension of Authorisation for Minor Use (EAMU). Who can doubt that vertical farming, protected cropping and other innovations in growing techniques will form part of this future. Government at all levels should encourage such developments. We should recognise that periods of change present agriculture with challenges.We can, through the Institute, seize these opportunities and be the businesses which lead our industry and will be at the heart of feeding the nation. What greater justification for the continued advance of the profession of Agricultural Management could there be? SCIENCE AND TECHNOLOGY THE FUTURE JOHNTAYLOR, THE RT HON LORD TAYLOR OF HOLBEACH CBE, PRESIDENT IAgrM The IAgrM Leadership Development Programme (LDP) of 2020 will (hopefully) go down in the annals of the organisation as the longest three-week course of its history, lasting as it did from February 2020 until May 2022! Little did we suspect when leaving the first week’s residential element at RAU Cirencester, with initial reports of the hitherto unknown ‘coronovirus’ spreading across the globe, that a subsequent 25 months would pass before we would be in each others’ company again. One of the key benefits of such courses is always considered to be, of course, the strong friendships and bonds formed between the peer group of disparate personalities and backgrounds thrown together in such an unnatural environment. Strangers coming together to live cheek-by-jowl and be challenged and pushed in what can sometimes be a high-pressure environment. Yet far from the two-year hiatus in our course sundering the relationships formed in that first week, our regular online catchups and livelyWhatsApp group actually helped, I believe, to form stronger bonds than would otherwise have been likely. Sharing each others’ triumphs and tragedies over the two years of Covid meant that when we came back together in London for the second week, we were already firm friends, and a cohesive team which was much more effective in offering challenge to our raft of top-level speakers. The LDP is rightly considered one of the top courses of its type in the country, evidenced by the range of top speakers and access it can command across more than fifteen days of intense activity. For myself, I believe it to be more important than ever that those within the industry with aspirations to ‘leadership’, however broadly defined, push themselves forward and take advantage of the opportunities provided by such professional training to expand their horizons, their perceptions and their contacts. Upon this, our future success depends. I couldn’t write this report without making mention of the directing staff, without whom the course would have neither personality, impact nor form. I believe we were particularly fortunate to be under the leadership of Rob Shepherd across the three weeks of the course, who was in turn greatly complemented by bothWynn Jones and Louise Manning, all of whom depended utterly on the organisational prowess and unflappability of the RAU’s Elizabeth Badger. I would encourage anyone to take advantage of this course, and others, to learn more about yourself, your industry and your future place in it. THE IAgrM LEADERSHIP DEVELOPMENT PROGRAMME (LDP) JOE STANLEY MIAgrM

www.iagrm.com | 7 6 | events@iagrm.com UK inflation has been low for 30 years but is now high. High street inflation including housing reached 8.6% in August, almost 3 times higher than a year earlier. Andrew Bailey, Governor of the Bank of England, highlighted 3 major economic disturbances that have conspired to cause inflation: 1. The uneven re-opening of the economies from lockdowns and staggered supply chain restart. 2. The war in Ukraine which is primarily driving energy and food inflation 3. The decline in UK workforce since 2021. Some Government decisions on the economy also contributed of course. Each point will be resolved at different rates. Most economic forecasters expect Consumer Price Inflation, now in double figures to slow to 4-5% by the end of 2023. Rising costs of living, led by energy costs are making UK consumers concerned and slowing spending. Sterling exchange rates drive UK inflation. As the pound ‘strengthens’ it grows relative to other currencies, meaning it can buy more euros or dollars and therefore more goods from abroad (they effectively become cheaper in Sterling). The opposite is therefore the case as well. Sterling fell to its lowest point ever against the US dollar in late September 2022 and fell sharply against the euro. Imports are therefore more expensive when converted into sterling. UK production can also therefore be sold at higher (sterling-based) values on export markets meaning home produced goods also go up in price. Consumers do not win unless they are heavily in debt, as debt and asset values are eroded equally. Commodity prices move instantly as a result of currency movements so often keep pace with inflation. This could boost farming profits in 2023. A recession in the UK is inevitable. Government has a substantial debt to fund whilst supporting vulnerable households from the rising costs of living and presumably still funding the structural projects such as HS2 and other ‘growth’ projects. Britain is also now considerably less appealing as a holiday destination than it has in the past, and tourism income is falling. Farming fortunes also often prosper in times of hardship: people need to eat regardless of their wealth, so a greater proportion of household spending goes on food.We may notice a decline in the now elevated house prices in real terms, but in exchange, if commodities do well, then so might land prices. That might take a little longer, but it could prove a useful hedge for capital-rich investors. It is in situations like this that we can feel reassured to be involved in the farming / food production sector as it is a reliable sector to be in. ECONOMIC PROSPECTS GRAHAM REDMAN, PMIAgrM CENV, THE ANDERSONS CENTRE INTEREST & INFLATION RATES Base Rate and CPI – 1989 to 2022 Source: Defra / Andersons -1% 1% 3% 5% 7% 9% 11% 13% 15% 1989 1990 1991 1992 1994 1995 1996 1997 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 2012 2014 2015 2016 2017 2019 2020 2021 2022 Interest/ Inflation (%) Inflation (CPI) Base Rate In 1980, I worked for an assignment with Sidney Arnold Press, the South Africa Businessman of theYear 1980, who defined management as ‘the greatest of the arts since its medium is human talent itself’. That definition encapsulates what I have experienced and observed to be effective, which is people-centred management. Even in the 1950s as a boy, my farming aunt advised me ‘there’s no shortage of technical information and advice but getting the people dimension right is the key’. This view was heartily endorsed at the University of Reading and by the late Professor Malcolm Stansfield throughout his career. It is always salutary to re-read what you wrote thirty years ago! I then highlighted eight points for managers wishing to embrace opportunities and the future. These I endorse today :- • Husbandry Practices: I noted farmers using clover to reduce N fertiliser use to 10% • Financial Common Sense: Avoid overborrowing; involve spouse; watch cash flow • Business Organisation: explore collaboration; compare survival keys; rest and relax • Use of Alternative Resources: ‘Sustainable’ means using methods grandchildren can. • Ancillary Enterprises: part-time farming is NOT discreditable; add value… • Farmer Group Participation: study together for mutual encouragement/ joint action • Agricultural Education and Farming Study: Lifelong Learning/ CPD; Nuffield; RAS • Personal Development: creativity, alertness, attitude, and faith. Change gives opportunity but it has rightly been said ‘we are drowning in data and starved for wisdom’.We need integral management of farming and environment, and of the management role:- managing ourselves, time, values, people team, data (with sensible digital usage) and change (Fig.1). Farmers and Farm Managers of the Future? • The new AI = Artificial Intelligence • The new Labour force = robots • The new ‘Farmer’s boot’ = drones • The role = Data-driven Adjudicator • Data doubles in one year (took 100 years to 1900) • No longer inadequate decision-making information but excess • Integral management/research e.g. mixed cropping • ‘in the multitude of counsellors there is safety’ (Proverbs 11:14) • Responsible independence with Farmer Managerial Sovereignty is a challenge to maintain. Good farm management still begins with sound husbandry. Integral Management still requires wholesome human relationships at its heart. Let’s welcome our IAgrM’s role in keeping our feet on the ground and our brains exercised (Fig.2). Keep looking up! Fig.1. Components of Integral Management Fig.2.Voices of RAC/RAU CirencesterWisdom. The Royal Agricultural University motto (since 1845) means:- ‘Cultivate your fields & tend your livestock with care under God’ Charles Dickens, after visiting his son as a student at the RAC in 1868, famously and wisely wrote:- ‘That part of the Estate of a farmer or landowner that pays best for cultivation is the small estate within the ring-fence of his skull; let him attend to his brains and it shall be well with his grains.’ The Book of Proverbs 4:23 says, ‘Keep your heart with all diligence for out of it are the issues of life’… MANAGEMENT: ART, SCIENCE AND IMPACT? JOHNWIBBERLEY, FIAgrM, PROFESSOR RAU, CIRENCESTER Self Integral Management People Time Values Change Data

www.iagrm.com | 9 8 | events@iagrm.com It has almost become a cliché to say that UK farming is going through the most radical reforms for 70 years but it also happens to be true. At the end of the agricultural transition the operating environment for UK farmers will be very different to what they have been used to. Adapting to such significant change can be a challenge at the best of times and will be even harder for the many farmers, farm workers and farm family members experiencing poor physical or mental health. Large numbers of the farming community experience depression, anxiety and poor physical health. Our agricultural community operates in a sector well known for its high rates of suicide, fatal and non-fatal accidents. ONS data for 2019 indicates that more than one farmer a week takes their own life. Data from the Health and Safety Executive (HSE) indicates that the rate of fatal injury in agriculture is the worst rate of the main industrial sectors and is 20 times higher than the all industry rate The poor H&S performance of UK agriculture is not because farming is an inherently more dangerous sector, but is down to a range of factors including a failure to implement H&S policies. It is also likely that tiredness due to long working hours, isolation and, for some, a low sense of self-worth plays a role. HSE also report that musculoskeletal injury is over three times the rate for all industries. These headline figures (particularly in the case of suicide) are really only the ‘tip of the iceberg’. Under the surface, and therefore often less visible, are high rates of depression, stress and anxiety and low levels of subjective well-being, with many farmers reporting that they feel misunderstood, unwanted and unsupported. High levels of physical pain can also contribute to stress, anxiety and depression. This matters not just due to concern for fellow humans but also because farmers are on the ‘front line’. They are key workers in delivering not only our food, but a range of environmental goods and services that are increasingly valued by society. Lone working, lack of a close confidant and limited social support networks have all been linked to poor mental health in farming. Indeed, having someone to talk to is one of the most common coping strategies in response to stress across a wide range of occupations and workplace situations. In agriculture, the absence of social support is often compounded by gendered notions of farm work and masculine stoicism, which can deter farmers from asking for help. The Farming Help charities, agricultural chaplains and other providers of support are doing good work but need to be better resourced. Health professionals need a greater understanding of farmers and the realities of farming life, including the factors that can deter seeking help. A range of regular farming contacts such as vets and farm assurance scheme officers can play an important role in spotting where help is needed. The challenges faced by farming are multifaceted. So must be the solution.We all have a stake in safeguarding the health and well-being of our farming communities.We need to ensure that farmers are fit to farm as they face the challenges of the agricultural transition and life outside of the EU. THE HEALTH ANDWELL-BEING OF OUR FARMING COMMUNITIES With the formalities of the IAgrM AGM over, the floor was given over to Alexander Newport and his farm manager, Oliver Scott, to set the scene for the Institute’s 2022 National FarmWalk. How refreshing to have two passionate individuals painting a picture of the future. A future and a vision that has been properly mapped out, with time and effort clearly having been taken to articulate it for all to see and against which, in the future, they both can be judged and held accountable. How refreshing too, to hear that farming is at the heart of that vision. Yes, the farming story and the move to regenerative agriculture will of course provide the cover and credibility whilst development opportunities are exploited across the Estate. But it is clear that farming will be the backdrop to the future of the Bradford Estate. Out and about, aboard three trailers, the discussions continued in small groups. Stopping off at various locations along the way gave a chance for a leg stretch and to talk, to be nosey and to listen. The passion so evident in the village hall was not lost out in the beautiful countryside. Yes, there was too much to see in too short a time. But even despite this, the little things to me shone through.When we stopped to look at the forestry works, for example, the small interpretation sign that the Estate had bothered to display for members of the public told me the passion for stewardship of the land was real and far, far more than a PowerPoint. It was genuine and from the heart. As with every farm walk I have ever been on with the Institute, the stop off at the hub of the farming activity, the home farm yard, complete with shiny kit quickly drew the crowds off trailers. A sign of changing times within the farming sector, was the robot on display being put through its paces. The robot is used for planting wildflowers that are grown for wildflower seeds without the use of herbicides. According to Oliver it has transformed the job of growing wildflowers. It knows exactly where every seed is planted and therefore can inter-row and inter-plant hoe meaning the hoeing process can be started before seeing any sign of the flowers, allowing him to get on top of the weeds. Fascinating to watch and a lovely nod to the future. Sadly, time was against us so the planned last destination couldn’t be reached. Returning to the village hall for tea and cake, as fellow members drifted away, it was with some sadness that this was the last event that I was to preside as Chair; that sadness short lived and soon replaced with pride that the end of my tenure had ended on such a high. Our thanks, of course go to Alexander and Scott for their time, honesty and openness in hosting the Institute. BRADFORD ESTATE HOSTS 2022 NATIONAL FARMWALK MARK ROBINS PFIAgrM, STRUTT & PARKER RURAL MATT LOBLEY MIAgrMAND REBECCAWHEELER, CENTRE FOR RURAL POLICY RESEARCH, UNIVERSITY OF EXETER

www.iagrm.com | 11 10 | events@iagrm.com IAgrM members Tim Cotterill SIAgrM & Paul Brennan PMIAgrM were sponsored by IAgrM to attend the International Farm Management Congress, hosted by the University of Copenhagen. We hear from them below their thoughts on the Congress... INTERNATIONAL FARM MANAGEMENT CONGRESS TIM COTTERILL, SIAgrM, HARPER ADAMS UNIVERSITY Having not previously heard of the International Farm Management Association (IFMA) until just months prior to the tour, it’s safe to say my limited experience of ‘Ag Travel’ was soon to be broadened and all thanks to the sponsorship from IAgrM. June 2022 marked the 23rd International Farm Management Congress hosted this year at the University of Copenhagen.With a global pandemic and a war in Ukraine having a major impact on food production, trade and prices since the last conference, ‘Strategic Farming in Scandinavia’ was the theme aptly chosen for this year’s Congress. My study tour commenced with a Next GenWorkshop at Lanthotell Lögnäs Gård near Laholm, Sweden. Focussed on developing the management skills of future farmers and professionals, the 2-day programme was centred around farm business strategy and the importance of competitive advantage to deliver vision and mission statements. To contextualise the theories and techniques covered throughout the workshop, a farm case study was introduced at the beginning of the session with a view to presenting a strategic plan for the business to all workshop attendants and facilitators by mid-morning on day two. Following a whistle stop tour around a nearby 600ha organic arable and dairy farm, we split into groups to design a strategy that aligned with the stakeholders’ personal and business objectives over the next 5-10 years. Internal and external analysis of the business sat at the core of this activity but the five pillars of farm management - market, finance, leadership, production and strategy - remained our focus points throughout the workshop and subsequent Congress. This exercise was particularly valuable and prepared the younger members adequately for the main conference in Copenhagen. After catching a train back, we arrived at Frederiksberg Campus in time for a welcome event to kickstart the 5-day Congress, where we had the opportunity to meet the wider tour delegates over a Danish hog roast and some beer. The week comprised a mix of presentations from expert speakers, plenary sessions, two days of outstanding farm tours and numerous social events in the evenings, including a meal at the world-famous Tivoli Gardens. The entire week was packed full of highlights, however, visiting a 5,700 hectare share farm agreement land management business in Denmark, along with a multi-thousand-acre Swedish prepack potato enterprise, were stand out moments for me. Furthermore, having the opportunity to present our findings from the Next GenWorkshop to the wider tour delegates and taking part in a panel discussion on the final day were equally fantastic experiences. I am hugely thankful to IAgrM for their sponsorship and support which allowed me to join this year’s Congress and gain a wealth of international farm business management contacts as well as insight into agriculture in so many different parts of the world. For now, it’s back to complete my final year of studies as I prepare for the next stop with IFMA - Saskatoon, Canada 2024. PAUL BRENNAN, PMIAgrM ANIMAL HEALTH ANDWELFARE INSPECTOR I recently had the opportunity to travel to Copenhagen to attend the 23rd International Farm Management Congress. The theme for this congress was Strategic Farming in Scandinavia. On our first day at the Congress, we were invited on a boat tour of Copenhagen.We had a guide who explained the history of the city and pointed out some interesting facts. After the tour we joined other delegates at a BBQ. This gave us an opportunity to introduce ourselves. Monday was our first day of talks.We were introduced to the presidents of the Farmers Unions of Denmark, Norway and Sweden. Each president talked about the issues they were facing in their specific countries. These issues are the same that the whole world is facing, including environmental issues, increases in energy costs and trying to get young people into the industry. It was interesting to learn that the issues that the small country of Northern Ireland faces are being faced all over the world. We then had a talk about how the world is evolving. Since 2013 the percentage of the world that is malnourished has risen from 8.3% to 9.9% with over three billion people unable to afford a healthy diet. This then prompts the question ‘can we feed the world and still meet our environment targets?’ On the second day we travelled into Sweden where we had the opportunity to visit a potato farm, an arable farm that also had a brewery and then finally to Nordic Genetic Resource Centre. At the centre they are successfully saving all plant, farm animal and forest species that are either found in the Nordic area or are of historical significance to the area. These species are grown again, and their DNA saved in three different areas of the world to make sure it can never be lost. We had another day of talks onWednesday where the debate headed towards the topic of feeding livestock and the humanitarian impact it has as we could be using this food to feed people. In the afternoon we had people from all over the world discussing papers on different topics. I was very interested in the paper from the South African delegates who had the studied the affects of backgrounding on livestock. That evening we had a meal in the historic Tivoli gardens.We also had the opportunity to see the presentation of the Tour de France cyclists and take time to walk round the amusement park. Thursday was our last full day of the Congress and this time we were again on field trips. I choose to go to the large machinery show in Sweden. The show was excellent with lots of new machinery and technology. The most interesting exhibit was one called ‘the pit’. As you can image it was a large hole dug into the field, but on the top of the ground they had different crops planted with different levels of tillage and fertilizer sowed.We could then see what was happening underground with root systems and drainage. At the Congress dinner, the baton was passed on to the University of Saskatchewan in Canada who will hold the next Congress in 2024. On our final day we talked about hat we had learned and what the industry needs to do to meet our new goals.We exchanged numbers and emails with other delegates and parted ways hoping to meet again. On a personal note, since attending the Congress I have contacted many of the members as I hope to be applying for a Nuffield scholarship and may contact them for information. This Congress has been a highlight of the year and I would strongly recommend everyone to attend one when possible.

www.iagrm.com | 13 12 | events@iagrm.com 2022 CONFERENCE GOES FROM STRENGTHTO STRENGTH VICTORIA BYWATER MIAgrM, IAgrM DIRECTOR The Annual IAgrM National Farm Management Conference is one of the most eagerly awaited events in the Institute calendar. This year the theme was ‘Balancing Food and Environmental Security’ which clearly resonated with members and the wider industry. In a new development to the build up to the conference, we carried out a member survey ahead of the conference to canvass some headline opinions which showed that: • Over 80% of respondents are concerned about our level of food security • A similar proportion agreed that balancing food and environmental outcomes was not being properly addressed • Again, over 80% thought agriculture had a significant role in climate mitigation, and • 45% agreed that alternative approaches to food production such a svertical farming would become more important. The interest in the topic and the challenges it presented resulted in over 400 delegates, significantly more than in 2021, making their way to the QE11 Exhibition II Centre in Westminster, and the breadth of speakers did not disappoint. Topics covered included integrating food and environmental security; food production and food security; valuing out natural capital, and integrating food and environmental security into business operations. Helping open the conference, NFU President Minette Batters defined food security as when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. (FAO). She urged that food, energy and the environment have to be in harmony, identifying a number of factors that need to be met for these areas to be in balance. Physical availability to food requires understanding of stock levels and what we need to produce. Economic and physical access to food will be influenced by social policy while meeting dietary needs will require education about consuming a balanced and health diet. Finally she stressed that stability of food supply is crucial being influenced by the climate, by economics and the geo-political situation. As current examples of these forces in operation she cited the war in Ukraine as a geo-political event catastrophically affecting food security, while the rampant inflation of farm input costs is already having repercussions for several sectors of UK agriculture with producers cutting back or halting production. She concluded that Government, NGOs and all involved in UK farming need to come closer together to embrace change and opportunities as we strive to work better to drive a plan for British Agriculture. Professor Tim Lang from the University of London told delegates that the 2021 Defra food security report was full of contradictions and failed to even define food security. He said the often quoted figure that we are 54% self-sufficient in food is misleading as this is 54% by value, not self-sufficiency in terms of tonnage or nutrients, both of which are lower. He said the British reflex that ‘others will produce the food to feed us’ is dangerous. He told delegates that food sustainability and security are linked encompassing society, environment biodiversity, culture and gender. Change on a big scale will be required to achieve sustainability and security. This will include changes in diet, lower input food systems, shortened food supply chains and a reduction in food processing. Ideally we need a Food Act but questioned the political will to deliver one. Lord Deben, Chairman on the Committee on Climate Change stressed the need to take climate change very seriously as it is here now and affects out ability to produce food. He says we should not under-estimate the consequences on African famines, as they will increase migration while also reducing availability of the food we look to import. He says diet changes can help with climate change. He proposed eating less meat, but eating better meat such as pasture-based. The UK should focus on producing a quality product, not producing poorer quality to be exported. He concluded by stressing that climate change is the single biggest threat we have, but we won’t address it until we address food security, food safety and food quality. During the rest of the day, speakers explored these points in more detail and stimulated considerable discussion. The overriding conclusion from an excellent and stimulating day is that the whole of the UK society, and not least, the agricultural sector is going through a period of huge change. Some of the changes being experienced in the sector today have been impacting on farmers for some years already. The effect of climate change is making agricultural production more difficult and uncertain This is challenging the position of the UK’s food security and has brought agriculture and its role in society to the forefront of the debate on this. Any effort to improve our food security, must have sustainability at its core. This is not only about the environment, but also includes important social factors such as development, health and culture. To achieve sustainability goals, improve food security and improve current market conditions requires collaboration across the full supply chain. The government must also provide a clear policy and framework on which producers, processors, retailers and consumers can make well informed decisions. The positive message is that with change come opportunities. The next challenge is to make the most of them. All the feedback suggests the conference was well-received, and a popular and worthwhile part to our programme of events. As ever we are indebted to our sponsors and supporters, Hutchinsons, Albanwise Farming Ltd, Figured, FCN, Chavereys, Promar International, Roythornes, Craigmore Sustainables, Barclays, Openfield, Safety Revolution,WilsonWraight, Agri Epi Centre, Farmplan, Kleffmann Digital, Ceres Rural,Writtle University College and Terravost without whom the event would not be possible. A big thank you to to the organising committee for their hard work and enthusiasm in making the event such a success. The challenge is building on this year’s conference next year which will take place again at the QEII Centre, London on Thursday 2nd November 2023. Minette Batters Tim Lang Lord Deben

www.iagrm.com | 15 14 | events@iagrm.com We are currently facing a combination of global, regional and local challenges which impact UK farming and food directly and indirectly: the strength of the US$; conflict in Ukraine; climate change; energy issues; the ongoing impact of Brexit, COVID and then our own UK economic/food policy, local food culture and industry capacity/capabilities. UNCERTAINTIMES This all makes for an unusually high degree of uncertainty in the agri-food supply chain. In some cases, we could be feeling the effects of these factors for up to 5 - 10 years from now. These are not short-term issues we are dealing with. As a result, the ‘new normal’ we are experiencing is probably here to stay for some time. Input costs for the last 12 months and more have continued to soar in all areas, including labour, energy, packaging, transport, seeds, fertiliser, crop protection products, machinery and equipment. In some, but not all cases, these costs have eventually been passed on to retailers, but it never seems to be enough to keep pace with the staggering increases being seen. Input prices, especially for fertilisers, might well stay high for the next 2 – 3 years, unless a resolution to the situation in the Ukraine is found soon. If these cost increases are not passed on to customers, then some horticultural growers will cut production in the future, if they have not already, maybe reduce the number of SKUs being provided, switch to other crops where returns are felt to be better (i.e. OSR and wheat) and/or in extreme circumstances, will stop production altogether NOT JUST COSTS But these are not the only challenges facing the UK horticultural sector. Alongside all of this, the Net Zero ambition of the NFU by 2040 is very ambitious, and quite rightly so. The NFU and other key industry stakeholders also need to ensure that the horticultural sector is fully involved in ELMS work going forward. The current seasonal workers scheme was not fully agreed until December of last year, and while there was some sense of ‘better late than never’ it has now been agreed for three years. Problems in processing visa applications, means there is still an unwelcome bottle neck and for the additional 10,000 places agreed, so it is vital that there are no further delays. There are also ongoing discussions with the DWP on the employment of local labour, but there are still issues with both the typical location of work and the motivation for it, not least, with such low levels of unemployment. UK government policy though appears to be giving off mixed messages: on one hand, encouraging local production, but in another way, opening up the UK market to increased competition, from the EU, US, Canada, India and Oceania suppliers. In the next 12-18 months, the subject of food security will come very much to the fore. UK HORTICULTURAL SUPPLY CHAINS AREWE AT A TIPPING POINT? JOHN GILES FIAgrM, DIVISIONAL DIRECTOR PROMAR INTERNATIONAL IMPORTANCE OF PRICE There is still a need for growers to understand more about their own costs of production. In some cases, they need to get better training on how to deal with supermarket customers and be able to explain to them why cost increases are justified. Price for retailers is still key, but so is the actual availability of produce and the concept of provenance is probably more important to some types of consumers than others. Many growers have been geared up to supplying the leading retailers, but should also think about other opportunities, in areas such as foodservice, the wholesale sector and in some cases, direct selling to consumers. Supply chain margins are still too thin. The ability to withstand further shocks as we have experienced in the last few years (Brexit, COVID, the situation in the Ukraine etc.) means that business confidence for many is still open to question. It is clear that farmers need better/fairer prices going forward. There has to be a better distribution of reward/remuneration through the chain. Consumers will, ultimately, have to be prepared to pay more for food, but with the relatively poor appreciation of how food is produced and what it costs to do this by many, this is a major mindset challenge. It also impacts on food processors and retailers too. THE NEED FOR CHANGE The changes needed to produce this situation in the supply chain are often quite idealistic, are not easy to bring about and maybe even involve unpopular/difficult decisions. They may even require an element of generational change, but in the mid to long term, both market regulation and consumer behaviour needs to alter if we are to genuinely create a sustainable food chain and not one that lurches from crises to crises. The UK supply chain is still often very ‘transactional’ and/or commercial in its nature, but is increasingly being required to consider issues around sustainability which test the ability and willingness to invest, just not for profit, but also for resilience. We have already probably reached something of a tipping point on this with the supply chain shocks we have seen in the last few years, Change in the supply chain cannot be achieved by taking a ‘silo’ based approach. It needs the full supply chain to work together on this, in order to build a more resilient future. It may well be led just as much by strong industry players as by government policy and objectives. John is a Divisional Director of Promar International, the consulting arm of Genus plc, serves on the Council of the IAGRM and is deeply involved with the Thames Valley branch.

www.iagrm.com | 17 16 | events@iagrm.com A new report from the Food Research Collaboration, based on analysis by Professor Lisa Jack (University of Portsmouth Faculty of Business and Law), one of the few accountancy academics to focus on the food system, shows why the supermarkets’ business model is surprisingly fragile. The report sheds light on why producers and suppliers bear the brunt, because the only genuine economy of scale that supermarkets have is bargaining power. The new report finds that adding scale actually adds to supermarkets’ expenses. In other words, supermarkets face the costs of running their businesses (stock, premises, IT systems, staff, enticing displays, sophisticated logistics), but need to keep prices down to remain attractive to consumers and keep them coming through the door. The supermarkets therefore keep prices low by enticing customers to buy additional items and by looking to their suppliers, as members of the IAgrM are only too aware. Bargaining power is the one real advantage that size and scale give the supermarkets, but it risks putting financial and emotional burdens onto their suppliers. One way supermarkets keep costs low, as many readers will know, is by charging volume discounts, charging suppliers fees for marketing and selling their products, generating ‘commercial income’ which can equal or exceed supermarkets’ bottom-line profits.Without the commercial income generated by charging supplier fees, British supermarkets would be running at or near a loss. The signs are though that this source is stretched to its limit. Unless other costs are cut by supermarkets and in the supply chain, then however contentious, the only other option left is to increase prices for consumers. Supermarkets have been fantastically successful by selling what are called ‘bundles of convenience’ to shoppers – low prices, convenience and even entertainment. The report though, raises important questions about how such a finely balanced model can make the big changes that may be necessary – and are often demanded by campaigners and suppliers – to achieve a more sustainable food system. This ‘supermarketing’ model of low prices, wide choice, expert marketing and slim margins, although finely balanced and expertly run at the supermarket end, risks unbalancing the rest of the food system. The unintentional consequences are a food system characterised by over-purchasing, over-eating, overproduction and waste. The report ends with suggestions of how things might be done differently – such as ending the reliance of supermarkets on commercial income – to make food fair, affordable and sustainable for all. None of these are easy or clear cut, and they are all politically fraught, but they could help to transform our food systems for good. Access the report The secrets of supermarketing: A model balanced on a knife-edge here: https://foodresearch.org.uk/ download/16383/ Agriculture is facing uncertain times. I say this reluctantly as it’s something we have heard frequently in recent years when discussing external factors like Brexit and Ukraine. But also, it’s a phrase that does a disservice to an industry that constantly has to evolve to maintain a certain level of resilience. It’s still prudent to monitor these external factors to ensure farming remains resilient, especially in Scotland. The political landscape north of the border has been dominated by independence for many years, but with the SNP in charge at Holyrood, Land Reform is never far from the spotlight. This coupled with the limited progress being made on a new Agriculture Bill means farming businesses, and particularly landowners, are looking to protect their position shortterm. Consequently, tenancy agreements are not attractive propositions. At Edwin Thompson we are seeing a renewed interest in Contract Farming Agreements as an alternative business structure. Over the last year we have been involved with creating several new agreements, allowing farmers to either free up capital, streamline their business, or take a step back whist retaining control. Arable contracts are still the norm, but most new agreements have focused on livestock-based businesses. These work on a similar basis to arable contracts. The Contractor provides the labour and machinery (albeit it in some cases a bike, dog, and stick), with the Farmer provides the land, buildings and working capital. The party providing the stock depends on the situation, but returns are calculated on the value of the trading stock produced. This suits the Farmer as it protects their ‘Active Farmer’ status and the ability to claim subsidies. It also provides an opportunity for the Contractor, who may not have the capital required to compete for an increasingly rare tenancy. Including subsidies within the returns calculation depends on the situation. There is an argument that any farming enterprise should stand on its own two (or four) feet without subsidies, but on marginal land this is increasingly difficult. In any case, a new Scottish Agricultural Policy is expected by 2025, so I recommend that any new agreement has an end date that coincides with the launch of the new policy, allowing the following agreement to factor in any changes to the subsidy regime. Overall, these agreements offer a high degree of flexibility, meaning they can be adapted to meet the needs and goals of both Farmer and Contractor. Before entering into any agreement, it is always important to seek professional advice. NEW RESEARCH FINDS SUPERMARKETS’ BUSINESS MODEL IS ON KNIFE EDGE CONTACT FARMING A SCOTTISH ALTERNATIVE PROFESSOR LISA JACK FIAgrM, UNIVERSITY OF PORTSMOUTH JACK FRATER MIAgrM, EDWIN THOMPSON LLP WHAT CANTHE AGRICULTURAL SECTOR DO INTHIS SITUATION? • Continue to work together to ensure that prices paid to farmers include costs of management and overheads to reflect their expertise and necessary investment, and to push back against requests for additional payments. • Work to have better forecasting and planning based on avoidance of waste throughout the supply chain. • Look for opportunities to be part of alternative ways of providing low-cost food for consumers, such as through buying groups linked to independent stores that creatively manage other economies of scale.

www.iagrm.com | 19 18 | events@iagrm.com With a changing climate, farm structures are undoubtedly under review as farms and estates assess their relationships in their future strategies. Many agreements are available, but the key is to ensure that the agreement is fit for purpose. Determining the drivers of the relationship is crucial to make certain the most appropriate choice is made which includes the level of input required by each party, the income expected, the farming method employed, tax considerations, length of the agreement but most importantly, how much risk you wish to expose yourself to. Currently where land is let, landlord/tenant relationships often rely on Farm Business Tenancies, which are generally low risk to the Landlord. They need to be drafted by a professional with a good understanding of the background legislation especially in regard to repairs, improvements and dilapidations. Generally rights and responsibilities can be agreed, but in the current climate determining a fair rent to both parties can often be the biggest issue with significant changes in commodity and input prices affecting profitability. Such agreements are treated as let income and thus have associated tax disadvantages, but they have little to no risk to the Landlord. So, what do the alternatives such as Contract Farming Agreements (CFAs) and Share Farming (SF) have to offer? CFAs and SF certainly present greater risk, requiring far greater involvement by both parties. CFAs have a basic relationship between a farmer, providing the land and inputs, whilst the contractor offers their growing expertise and machinery. The farmer takes a first charge for the land, historically being the Basic Payment Scheme, which is radically changing, whilst the contractor takes a contracting fee. But determining the first charge, a rental equivalent, can be difficult and good budgeting is necessary. After costs the profit is then split on a pre-agreed level and both parties have a mutual goal. It is tax efficient as the farmer is trading and often allows efficiency of scale. So how does SF compare to a CFA? Share Farming is a partnership, a specific type of joint venture where two (or more) are farming in their own right on the same land. It has more involvement but is likely to become a more prevalent agreement as parties work together to create profit in more ingenious and flexible ways. It is perhaps not as prescriptive as a CFA but has a common goal of creating an output. Trust and skills from each party are imperative, and the working capital introduced to the agreement can be more variable. Of course, the financial return to each party needs to reflect the inputs. Whichever structure is chosen, there are new considerations which should be incorporated into any fresh agreements as the agricultural landscape changes. Aspects such as the intellectual property rights (e.g. the digital information now gathered on farms), income from Natural Capital Assets (e.g. carbon and soil fertility), the new grant schemes (e.g. Sustainable farm incentive and ELMs payments), energy production from farm and biodiversity net gain opportunities all need to be fully understood and fairly apportioned. Whichever agreement is chosen there is a lot to consider! The Institute of Agricultural Management, Agricultural Management Award is given to somebody who in the view of IAgrM Council, has demonstrated excellence in the field of farm management, or who has made an outstanding contribution to the advancement of management in the farming industry. The winner can be any person connected with farm management in the broadest sense. The 2022 recipient of the award is Alan Spedding FIAgrM. Alan was one of four sons born to a farming and milk retailing family in Clitheroe. He was the clever one and his parents thought farming was no place for boys of his intelligence so he went to Sutton Bonington, graduating with a B.Sc. (Agric) in 1962. His first job was with the Southern Counties Beef Recording Society, part of Hampshire Cattle Breeders, an independent AI company and he trundled around the south and south-west of England towing a cattle weigher. This was shortly after the first importation of Charolais Cattle and breeds and crosses were being argued about at marts and meetings. Also, at the time the Rowett Institute’s Reg Preston had launched barley beef feeding. It had its problems as did the Charolais, but it was obvious that these innovations promised more profitable production but facts and figures were needed. The beef recording groups merged, eventually to become part of the new Meat and Livestock Commission and Alan found himself at head office analysing results from around the country and from which he identified beef systems and approaches within them that were producing superior results using gross margin analysis. By the mid 1970’s four other continental breeds had entered the country and he was transferred to manage the Beef Demonstration Unit at Stoneleigh. He quickly established a reputation for writing thorough, impartial and concise reports including a regular column in Livestock Farming Magazine. As a result, he was approached by the Royal Agricultural Society of England to join them to handle membership services and conferences and the RASE Journal which he eventually edited. When Alan retired in 2003 he had a chance conversation with Dr Gordon Gatward, then Director of the Arthur Rank Centre at Stoneleigh Park who was worried about the difficulty rural clergy, often with urban backgrounds, had locating reliable, impartial and concise rural information. This duly gave birth to the RuSource project – which still produces around 5 briefing papers every Thursday and more than 4,000 in total and which will be familiar to IAgrM members. The Farming Futures project was formed in 2012 with the objective of locating and assembling information to help farmers find information to help them with their strategic decision-making. Alan became its first editor. Now, 10 years later it’s the Food and Farming Futures project with over 24 thousand papers in the National Libraries for Agri-Food. In his time Alan, among other projects, has been Chairman of the British Institute of Agricultural Consultants (BIAC), Secretary of the Amenity Forum encouraging the Amenity Industry to take the herbicides they use more seriously, a judge of the Farmers Weekly Diversification Farmer of the Year Award and a Member of the Harper Adams University Validation Panel for MSc Agriculture courses. FARM BUSINESS STRUCTURE CONSIDERATIONS AGRICULTURAL MANAGEMENT AWARD ADRIAN CANNON PFIAgrM FBIAC FRICS FAAV, TAYLER & FLETCHER Carl Atkin presenting the award to Alan Spedding