Rural Bulletin: 1 February 2018

NFU survey highlights rural broadband inefficiency 

Rural broadband continues to be a major problem, with almost two-thirds of farmers still unhappy with their broadband speeds, according to a recent NFU survey. 

The 2017 NFU Broadband and Mobile survey revealed that, while broadband was an essential tool for most farm businesses, 59% said the speed they received was inadequate.

“Increasingly, farmers are diversifying their income, with broadband speed dictating both the uptake and success of some diversification projects,” said the NFU’s Suzanne Clear in a Farmers Weekly report this week. “On-farm tourism, letting buildings for business use and renting out property for housing are being particularly affected by slow broadband rates.”

Farm borrowing hits record high

UK farm borrowing hit a record high in December 2017 – up £481m on the previous year, to £18.3bn. Despite this year-on-year increase, December 2017 borrowings actually fell by £363m compared with November levels – a common trend as support payments reach farm bank accounts.

In a recent survey carried out by the NFU, on average 34% of existing finance was used for cashflow purposes while 66% was used for investment

Tenants welcome plans to nationally manage Scottish Crown estate 

The Scottish Government’s plans to nationally manage Scotland’s Crown Estate have been welcomed by tenants. 

Following the devolution of powers over the Scottish Crown Estate last year, the new Scottish Crown Estate Bill was put to Parliament on 24 January and is set to alter the management of assets and give communities a stronger voice.

NFU Scotland Policy Manager, Gemma Cooper, said: “Tenants wish to see the estate retained as a whole, with a central management function.” The Bill recommends managing assets on a case by case basis, and where assets are transferred to an alternative manager, it provides a framework including the requirement for annual reports, management plans, keeping accounts, and audit. “This gives a level of comfort for the agricultural tenants.” 

Muller drops milk price by 1p/litre

The UK’s second largest milk processor, Muller, has become the latest firm to announce price cuts – with its standard milk price set to drop by 1p/litre from 1 March.

Like other processors, it blames the decline in milk price on the weaker UK dairy wholesale market. The 3.5% price cut means the standard litre price will now be 28p/litre (based on 4% butterfat and 3.3% protein).