NVZ REGULATIONS BRING BUSINESS PLANS INTO FOCUS

Following new regulations which came into force on the 1st January 2009, dairy farmers are having to reassess business plans in order to maximise their resources, warns leading environmental consultancy ADAS.

Livestock farmers face the biggest challenges in meeting the statutory requirements as they must comply with closed spreading periods, manure N loading and minimum manure storage requirements, as well as planning Nitrogen applications before any is actually applied.

Non-compliance could lead to significant financial penalties under the Single Farm Payment Scheme, or even to prosecution. The new regulations are especially important for the dairy industry as for many farmers they will require additional investment against a backdrop of falling milk prices.

An extra 13% of England has now been designated an NVZ, bringing the total to 68% of all land. Four per cent of the land in Wales is also affected.

As a result of the new regulations, dairy farmers will need to place new emphasis not just upon the profitable aspects of their business, but upon finding an effective mix of activities. New or upgraded facilities may be required to meet the needs of the legislation and businesses will need to consider viable and sensible financing for such significant investment.

“It’s crucial that businesses consider their futures, and the directions in which they are moving in the short, medium, and long term,” warns ADAS consultant Steve Ford. “Decisions need to be taken with respect to the most profitable enterprises – for example, although beef and lamb prices have improved in recent months, dairy margins remain healthy. However, there remains a high capital cost associated with dairying.”

For those looking at expansion, it is important to consider profitable and capital-efficient means of enhancing capacity. Slurry storage can potentially yield unnecessarily high costs, and so alternative options may need to be identified. “Measures such as the separation of clean and dirty water can reduce the size of the store required,” explains Steve. “The situation is one that should be monitored closely, with all cost effective avenues explored.”

Drawing on science-based knowledge and practical experience of nutrient management on farms, ADAS is ideally situated to help dairy farmers with the new regulations and identify cost effective solutions for slurry storage.

Wider services also include development of Farm Business Management Plans, assistance with Planning Applications, and associated ecology services.

“Our FACTS qualified advisers offer a service which will reduce the time and resources required to plan fertiliser and manure use, and ensure compliance with the many other aspects of the new NVZ regulations,” says Steve.

ADAS is behind the development of the Defra and Environment Agency recognised PLANET software, a practical tool which helps farmers to ensure compliance with the NVZ rules. An updated version of the software was released in November 2008.