Sow the seeds of success with the latest news from Crawford ® Agriculture Welcome to our first newsleer of 2021, aſter the end of a turbulent year for the rural sector. Reflecting on 2020, it seems an age ago that we were sponsoring the Oxford Farming Conference 2020 Emerging Leaders Programme and aending #LAMMA2020 with clients. January 2021 We were then hit with the dual blow of Storms Ciara and Dennis in February which saw a significant volume of storm and flood claims affecting our rural communities. This was closely followed by the escalation of the COVID-19 pandemic which saw a national lockdown enforced, panic buying causing a surge of pressure applied to the UK’s supply chain coupled with a change in shopping habits that transformed what customers were putting in their baskets almost overnight. True to our purpose, throughout this period our dedicated and passionate Crawford Agriculture team has continued to play an important role in restoring and enhancing rural lives, businesses and communities. Whilst the majority of our workforce were already homeworkers, we quickly enhanced our remote working capabilities and our technological tools – such as live streaming, drone assessments and our unique YouGoLook self-service app – all came to the fore as we continued to operate throughout the year and support our clients without interruption. Furthermore, despite the challenges of 2020, we’ve continued our commitment to reinvest in rural communities by recruiting the absolute best new talent from agricultural colleges, universities and businesses. We’ve also launched our rural surveying solution, led by Chartered Rural Surveyors, to provide specialist advice both within an insurance claims situation and through our external Crawford Building Consultancy business. Proudly, we’ve achieved all of this whilst also achieving record net promoter scores from clients, as well as best-ever internal employee engagement scores, with the vast majority of our team recommending Crawford Agriculture as a good place to work.
Transcript
Sow the seeds of successwith the latest news from Crawford® AgricultureWelcome to our first newsletter of 2021, after the end of a turbulent year for the rural sector.
Reflecting on 2020, it seems an age ago that we were sponsoring the Oxford Farming Conference 2020 Emerging Leaders Programme and attending #LAMMA2020 with clients.
January 2021
We were then hit with the dual blow of Storms Ciara and Dennis in February which saw a significant volume of storm and flood claims affecting our rural communities.
This was closely followed by the escalation of the COVID-19 pandemic which saw a national lockdown enforced, panic buying causing a surge of pressure applied to the UK’s supply chain coupled with a change in shopping habits that transformed what customers were putting in their baskets almost overnight.
True to our purpose, throughout this period our dedicated and passionate Crawford Agriculture team has continued to play an important role in restoring and enhancing rural lives, businesses and communities. Whilst the majority of our workforce were already homeworkers, we quickly enhanced our remote working capabilities and our technological tools – such as live streaming, drone assessments
and our unique YouGoLook self-service app – all came to the fore as we continued to operate throughout the year and support our clients without interruption.
Furthermore, despite the challenges of 2020, we’ve continued our commitment to reinvest in rural communities by recruiting the absolute best new talent from agricultural colleges, universities and businesses. We’ve also launched our rural surveying solution, led by Chartered Rural Surveyors, to provide specialist advice both within an insurance claims situation and through our external Crawford Building Consultancy business.
Proudly, we’ve achieved all of this whilst also achieving record net promoter scores from clients, as well as best-ever internal employee engagement scores, with the vast majority of our team recommending Crawford Agriculture as a good place to work.
Not ones to rest on our laurels, we know we have an important part to play in continuing to support rural lives, businesses and communities through these challenging times. Whilst recent news on the development of the coronavirus vaccine are clearly welcomed, the pandemic still looms large as customer footfall is reduced, shopping habits continue to ebb and flow, and concerns such as coronavirus livestock mutations continue to abound. This is in addition to adapting to a post-Brexit era and other developments such as the increasing concern around the UK growth
in Avian Influenza and the effects of the Agriculture Act 2020.
Nevertheless, our Crawford Agriculture team – larger, and with more experience and qualifications than ever – is ready to support you and your rural customers. None of this is possible without the support of our valued clients for which we thank you and wish you the very best for 2021.
Paul LofkinHead of Specialist Services – Agricultural, Rural Industries & Estate Losses (ARIEL) and Crawford Building Consultancy (CBC)
Royal Agricultural University and Institute of Agriculture Management (IAGRM) Leadership Development Course 2020 – Week OneARIEL Technical Head, Jane Hunter, shares her experience April 2020
In 2019, it was suggested to me that I might look at a course that the Royal Agricultural University offered in conjunction with the Institute of Agricultural Management.
The course in question is a leading executive level policy course for those engaged in the agricultural and land based sector
and is run every two years. The course is specifically designed for individuals with a desire to effect change. It provides an unparalleled access and interaction with some of the most influential sector leaders from production, retail and policy across the entire food and farming sector. The course is facilitated and designed to make the most efficient use of time and is a masters-level training programme. The aim is to develop an understanding of policy making in the UK and Brussels and that the delegates will come away armed with a toolkit and a network for the next step of their career journey within the agri-food sector.
This, however, was countered with my concerns over domestic requirements, the day to day complications of school runs and my husband’s demanding job in the Police which also takes him away from home a couple of nights a week. I then reviewed the application requirements and realised that there were only very limited places available and the entry process comprised a lengthy application form followed by a panel interview with the course directors. Realising that it was quite unlikely I would actually gain a place on the course made me more determined so, with Crawford’s support, I completed the application form and submitted my biography in July 2019. To my surprise, I subsequently received an invitation to attend a panel interview in October 2019 at The Royal Agricultural University’s campus in Cirencester. The interview required a commitment that the candidate could actually attend the three weeks of the course and it was at this stage I began to organise plans at home to enable me to commit.
The interview was demanding and comprised a panel of the four course directors. They specifically questioned my motivation to attend the course. They also explored the detail of my CV and achievements both personally and within my career. I left the interview with absolutely no idea as to whether or not I had gained a place on the course. I was delighted to hear from the course administrator a couple of weeks later that they were offering me a place on the course.
The delegates reflect on the big issues of the day during the three week intensive residential course that takes place in Cirencester, Brussels and London with focus on:
• The UK Industry Leaders and Policies
• The EU and International affairs
• Management and Communication skills
• Personal development
My initial thoughts were that the course looked very interesting and I had been presented with a fantastic opportunity: what a relevant time to attend the course following Brexit.
The first week of the course fell just after Storms Ciara and Dennis – not the best timing! On Sunday 23 February 2020, I arrived at Cirencester at 3pm with little idea of what to expect. There had (deliberately) been very little advice as to how delegates could prepare for the course. The first afternoon was a little nerve wracking. Who else would attend the course? Would it be difficult? What would they make us do?
The week was demanding, exhausting but very interesting. When you have been working for many years and have a busy family life it is rare that you have an opportunity to meet new people, learn new skills and actually take time out to reflect. The days were long, often finishing with a speaker and discussions over dinner. There was a packed timetable of speakers, activities, presentations and discussions. The course Directors are Prof Louise Manning who is Professor of Agri-Food and Supply Chain Security at the RAU, Robert Sheppard who runs Allenford Farms, and Professor Wynne Jones ex vice Principal of Harper Adams Agricultural University. There are 13 delegates ranging from arable farmers, farm managers, contract farmers, farm consultants, UK head of agriculture in a bank and land agents. We were a really diverse group of people with a passion for British Agriculture. The success of the course is dependent upon the delegates which is why they have such a rigorous selection process. During the
week we met a range of interesting and motivational people. Some of the activities were difficult – it’s not a comfortable process analysing one’s faults! We were as a group very excited to be going to Brussels at the end of March; unfortunately, but inevitably, the remaining two weeks of the course have been postponed until after the coronavirus outbreak is under control.
The first week of the course has certainly made me reflect on my own strengths and weaknesses and how I might develop in my career. I think one of the most valuable aspects of the course is going to be the network of delegates going forward. We are all still in contact and I feel some of these people will now be friends and a support network for life.
Unfortunately, the pandemic has delayed the remainder of the course which was due to take me to Brussels and Westminster; however, I will update you all on how the course progresses as developments allow. I would also take the opportunity to remind everyone of the support for us to all to continue our own personal development. This course required a significant commitment from Crawford – both in terms of finances and allowing me the time to commit to it – and I have no doubt that the business is keen to support others should they wish to continue their own personal development too.
60 minutes on the impact of the coronavirus on agri-supply contracts and workers’ safety with Roythornes solicitorsCII award-winning ARIEL East Adjuster, Rebecca Thompson, reports on a recent online webinar June 2020 The COVID-19 pandemic has had a significant impact on some agricultural supply contracts. Farmers and growers have faced changes to quantities, delivery schedules and prices, often at short notice. In more extreme cases, produce has been uncollected entirely and forward orders have been cancelled. Typically, the relationship between farmers and growers and their customers are long term and each party will accept some level of casual flexibility to contract terms by either party in some circumstances. However, it is likely these relationships will be tested by circumstances caused by the pandemic.
I recently joined an online session hosted by Roythornes solicitors where a panel of their legal team discussed the importance of farmers’ and growers’ understanding of contractual “backstops” which could assist them in negotiations with customers, and deciding the appropriate response to changes in delivery schedules and/or quantities.
The session mainly focused upon the concepts of force majeure and frustration.
Force MajeureAs the wording of force majeure clauses vary from contract to contract there is no universal response as to whether these can be relied upon to free a third party from liability to collect or take delivery of produce due to the effects of COVID-19.
Force majeure wordings often refer to events occasioned by an act of God and it could be argued that the COVID-19 pandemic falls into this category. An act of God is defined by case law; however, there is no case law covering the point of whether a pandemic would be considered to be an act of God.
The panel urged farmers and growers to consider whether the closure of, for example, a fish and chip restaurant would actually prevent their customer (i.e. a merchant) collecting or taking delivery of produce. It is possible that the merchant, with whom the farmer’s or grower’s contract exists, is not prevented from collecting or taking delivery of the produce. In this
example, it is the fish and chip restaurant proprietors who are prevented from taking delivery of the produce because of the closure of their business by Government action and this would not affect the contract between the farmer or grower and their customer.
FrustrationFrustration applies when
“ without the default of either party a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract”
(Davis Contractors v Fareham UDC, [1956]).
Should one party successfully argue that a contract has been frustrated, then the whole contract is ended. The panel commented that frustration is difficult to prove and to take through the courts, noting that they had no experience of and did not know of anyone with experience of taking a frustration claim to court.
To conclude: before deciding to enter into a legal dispute parties should consider the fact that such action can be lengthy, expensive and the outcome is uncertain. The panel encouraged farmers and growers to work with their partners to achieve agreed outcomes that are acceptable to all parties involved to maintain relationships and keep contracts on track wherever possible.
An update on the dairy sectorJack Ward, ARIEL Adjuster, provides an overview of a recent dairy sector webinar run by The Institute of Agricultural Management (IAgrM) July 2020I was recently fortunate enough to participate in an online webinar organised by IAGRM with guest presenters from Kite Consulting and AHDB who provided an in depth update on the UK dairy sector, something particularly pertinent in light of the ongoing COVID-19 pandemic.
The webinar was run in a podcast style and hosted by John Allen FIAgrM of Kite Consultants, and Patty Clayton, Lead Analyst at the Agriculture and Horticulture Development Board (AHDB).
OutlookPatty Clayton began by discussing the proposed outlook of global dairy supplies for the year beginning 2020, prior to COVID-19. The outlook was positive, global dairy product prices were expected to remain stable with minor fluctuations in cheese and butter through 2020, and supply increasing by 1 percent with demand expected to increase at a slightly higher rate of 1.5 percent.
However, Patty explained that this outlook has now changed considerably due to COVID-19 and its impacts which have been felt throughout all economic sectors. Patty suggested that the impact of the pandemic on global milk production will marginally reduce production, with EU production lowered to 0.4 percent from 0.7 percent, and US (which heavily influences global markets) production down to 1.4 percent from 1.8 percent. This is contrasted with their usual year on year growth which is estimated at two percent.
The reductions highlighted above are ostensibly as a result of COVID-19 and its impact on society. Nationwide lockdowns introduced in nearly every country across the world between January and May caused economic output to decrease considerably. As a result of the lockdowns, and continued restrictions on movement, less economic activity takes place and consumer demand for all products decreases. In light of the above, people have less disposable income and consumer confidence falls, exacerbating the reductions in demand and subsequently production. Patty suggested that their prediction is that there will be no full recovery in global dairy production until the end of 2021.
Effects in Great BritainIn Great Britain, AHDB’s production forecast for the 2020/2021 season was down just under one percent at around 12.44bn litres for the season, which is 83M litres less than achieved production from the 2019/2020 season. Patty noted that most of the expected reduction occurred in the first half of the season, and extenuating factors were already at play, including the poor weather experienced during last winter and spring. However, one ray of positivity was that their prediction is that milk production and
delivery for the second half of this year will be on par with last year, if not marginally up.
AHDB has forecast three scenarios to help predict the future market. These are based on a multitude of factors, such as how and when we return to our normal spending habits, Economic output and whether localised lockdowns are extended or continue. However, summarizing for the dairy sector, consumption remains down in all scenarios, although milk, and cheddar, being a staple food and supported well by the retail sector, remains stable in its demand. Other indulgent cheeses, butter and yoghurts are described as being particularly dependent on the ‘eating out’ sector, as well as canteens and schools, and whilst supported by retail, the gains in this sector are not enough to support the losses.
The outlook may be positive though, as we slowly return to our normal habits and workplaces, where we tend to eat out and grab ‘food to go’. However, consideration has to be made as to the longer term effects of the pandemic, and whether employers or employees ever return to their workplaces and how long it takes for consumer confidence and spending to increase.
Global markets with COVID-19John Allen FIAgrM works for Kite Consulting who provide business services to the entire food supply
chain, and is recognized as a leading specialist in the UK dairy sector. Whilst John’s presentation focused on a broader spectrum of issues which are facing the global markets currently, similarly to Patty, he emphasized how our strong Cheddar market is helping to restock, with some clients noting a 21 percent increase in sales. Furthermore, the re-opening of food service (albeit slow) is improving the current situation. Additionally, he stated that traditional dairy product consumption had risen, largely through the retail sector.
FarmingFor farmers, John suggested that the market risks remain high, as a result of the US destabilising local markets, the UK recession and the price pressures which will follow as a result. Additionally, a topic which has become less prevalent in light of the global pandemic, John explained how Brexit and the weak pound are also affecting the volatility of markets and prices. John concluded by highlighting a survey of his key accounts that, not surprisingly, showed their economic priorities have increased during the pandemic, alongside their environmental priorities. However, societal priorities dropped with many responses being inconsistent in nature, for example, many farmers stated that whilst COVID-19 may influence people to shop locally, other farmers suggested that consumers were becoming even more focused on price.
Conclusion It was interesting to note that both Patty and John closed their speeches with an ostensibly similar narrative, emphasising that farmers must strive to be flexible, but also how the market for farmers is open for growth through diversification and adapting to societal needs and demands. John suggested that the current trend will continue and by 2030 experts believe there will be a further reduction in cow numbers across the UK, but we will be pushing higher yields from smaller farms.
Following the presentation I had an opportunity to reflect on what I had learnt from the two speakers. I found that the global dairy industry is affected by many external factors and markets; supply and demand, the retail service and hospitality industry to name a few, and as a result it has suffered somewhat due to the pandemic and its implications. However, it was interesting to note that actually in comparison to other industries, such as hospitality, and automobile, its effects were marginal. It also serves as a timely reminder that we as a country should always look to shop or purchase local, so we have less reliance on other larger markets such as the US.
I believe that the way forward for farmers will be by diversifying and being as flexible as possible, complying with environmental and societal demands. Maybe in the future, we will continue to see farms which are smaller in size and have less animals, but are producing higher yields and growing higher yielding crops using the latest cutting edge technology, such as small robots, Agrivoltaics, or Smart Tractors!
This is corroborated by various diversification reports from rural insurers and risk managers. Market information presents a significant number of anecdotal accounts of how farmers have diversified and become less reliant on typical farming methods to increase revenue. By doing this, farmers remove themselves somewhat from the volatility of the farming market, and grow naturally, finding new ways to create revenue.
All in all the presentation was a fantastic insight into the current dairy market, and I would recommend a visit to Kite Consulting and AHDB’s websites, both of which are fantastic sources of information which were referenced heavily in the presentation.
Kite website AHDB website
IAGRM is a UK based charity who aim to promote high standards in the practice and business management of agriculture as well as training in all aspects of management in agriculture. IAGRM encourage the provision and attainment of professional qualifications in the principles and practice of management of agriculture. IAGRM offers a wide variety of events and training sessions throughout the year; a full list can be found using the link.
Encounters with Drosophila SuzukiiFuture Talent ARIEL Adjusters, James Windibank and Rosie Jones explore the difficulties of managing soft fruit crops August 2020The spotted wing drosophila (Drosophila Suzukii) is a fruit fly which originates from Japan. Since it was first discovered, the fly has spread worldwide, firstly to the USA, then to mainland Europe, before first being detected in the United Kingdom in 2012 at NIAB (National Institute of Agricultural Botany) in Kent. The spread was most likely caused through transport of infested fruit.
It is an invasive pest of soft and stone fruit crops and, if left uncontrolled, can result in severe and complete crop loss as seen recently in the south-east of England. Our specialist adjusters have encountered claim complications this summer on various liability and hailstorm claims in Kent due to the increased SWD risk with damaged fruit.
The flies are so small you are unlikely to notice them unless you are specifically looking for them. The males have large red eyes and a noticeable dark grey spot on each wing tip and two very small black bands on the front legs. The female fly has the same bulging red eyes and has a small saw (ovipositor) at their rear end.
The pest is extremely mobile and often only three-four mm in length. Female flies penetrate the fruit using the ovipositor, which cuts into the skin of undamaged fruit; they are therefore able to lay their eggs just under the surface of a variety of soft and stone fruits.
Unlike the majority of common fruit flies found in the UK which are attracted to ripe and overripe fruits, Drosophila Suzukii (SWD) is attracted to under ripe fruits. It is, therefore, able to permeate fruit crops before and during the harvesting period in the UK, making it a highly problematic species to detect and control. The main fruits affected in the UK are raspberries, strawberries, blueberries, and cherries; less frequently they attack stone fruit such as plums.
SWDs cannot be controlled 100 percent in the UK. However, the most successful methods of control use a combination of practices, for example, combining the use of cultural control, chemical control and farm hygiene.
At the start of the production season, it is common practice to use traps in wild areas of the farm to identify the presence and severity of SWDs. If SWDs are being detected in wild areas of the farm then monitoring of crops should begin immediately. There are a variety of monitoring traps available currently in the UK which prove effective in monitoring and catching SWDs whilst new and improved traps continue to be developed.
Other than fly traps which are expressed as a control measure to aid in identifying the presence of SWD, there are three insecticides which have been trialled in recent studies and have proved to offer better control than other groups of compounds: Organophosphate, synthetic pyrethroid and spinosyn spray. However, Organophosphate is no longer approved for use. Synthetic pyrethroid, although effective, can have adverse effects on predatory insects which are relied upon to control other pests of fruit crops. Spinosyn is the best option, however is yet to gain approval in the UK on some fruit crops.
There are numerous ongoing studies of SWDs and the best methods to control and prevent their impact on fruit crops. AHDB (Agriculture & Horticulture Development Board) has worked with the manufacturers of crop protection products but is yet to secure enough approvals for the use of them in the UK.
Should any use of insecticides become problematic and cause any contamination, cover for environmental
damage can be available within policies subject to limits and deductibles. Claims of this nature would however need to be handled by a team of specialist adjusters from both Crawford Agriculture and Crawford Environmental.
Aside from chemical control, good crop hygiene and safe waste disposal are vital to contain the spread of the pest should an infestation take hold. Disposal of contaminated fruits on open ground, such as compost heaps should be avoided as this allows the flies to reproduce and continue to feed on the rotting fruit. The fundamental aim is to minimise the favourable conditions which increase reproduction.
It is essential that farmers adhere to basic farm hygiene measures as best they can and are able to demonstrate that necessary precautions have taken place in order to mitigate losses for their future growing seasons. Fruits should be inspected regularly, and measures advised by AHDB which should be undertaken by UK growers include:
• Dispose of waste fruit and materials if they show signs of infestation
• Destroy waste fruits to prevent and control the spread
• Remove unmarketable fruits on the crop as soon as possible
• Remove damaged and fallen fruits from the ground as these provide an ideal breeding ground
• Use insect netting where possible
Ensuring the correct disposal of waste fruits is also essential in minimising the impact of SWDs. The main effective options which growers may consider include:
• Cooking/juicing/pureeing fruits
• Drying damaged fruits
• Anaerobic digestion
• Freezing
There are already growing numbers of SWD in the UK. If the spread of SWD were to reach a neighbouring farm’s fruit crops following a lack of initial control measures on the grower’s behalf this could bring potential liability claims from affected farms. Following an outbreak of SWD where crops are lost due to negligence there is no material damage cover for the farm to rely upon, and spread to neighbouring farms could lead to all damages being the responsibility of the grower. We are aware of a case where initial spray drift resulted in an SWD attack on a soft fruit crop, providing the circumstances in which the fruit fly could take hold. Neither the initial spray drift nor the SWD attack were covered by the fruit farmer’s policy.
In the case of Leakey v National Trust (1980) the judgement determined, “in summary as providing that a defendant landowner is liable for nuisance caused by natural causes on their land as long as they either knew, or ought to have known of the hazard, and that they then failed to take reasonable steps in the circumstances to bring the nuisance to an end.” In addition the Rylands v Fletcher (1868) case creates a precedent in which there is a “strict liability” of a defendant in nuisance where there has been an accumulation of a hazard on a defendant’s land, and an escape of this thing onto a neighbours land occurs. Applying this ruling will provide the same result in court for a defendant. This is why identification and control measures are so critical to prevent and mitigate the spread of SWD; it is not only the farmers’ own crop which is at risk with no insurance cover for losses, but claims may arise against that farmer for allowing the pest to spread.
Rural planning – agricultural buildings to residential developmentsA blog by Bridget Slade, Crawford Rural Consultant Chartered Surveyor November [email protected]
From our work at Crawford Building Consultancy throughout the UK, visiting many farms and estates, we often come across hidden gems of residential development potential particularly in the form of barns. Many landowners are unaware of this potential, and how such opportunities can be managed to fruition. Through our rural consultancy, we are able to offer strategic advice on this type of project, no matter what the size is.
The conversion of agricultural units into residential ones can be done (for the most part) without the need for full planning permission, using the prior approval route, whereby the Local Authority is notified and provided with relevant information enabling them to reach a decision within eight weeks.
In order to go down this route, the barn must satisfy certain conditions:
• It must have been in use for an agricultural purpose on or before 20 March 2013 and cannot have had a change from agricultural use subsequently (it is important to understand here that an “agricultural use” does not include equestrian use).
• From 1 August 2020, you must be able to supply floor plans, and show that all living spaces in the proposed new dwelling will have adequate natural light.
• The barn must be “capable of functioning as a dwelling” already – this means that it should be structurally sound with the roof intact, however, there is nothing to stop a landowner from making repairs to said barn as part of a routine maintenance schedule, before then applying for conversion.
• Lastly, the agricultural unit must not exceed 865 sqm (this is the maximum possible over five residential units).
This permitted development is known as Class Q, and was introduced in 2015. Back then you could create a maximum of three dwellings from one unit, but since 2018 you can now create five – if they all fall within the footprint that is. You cannot extend beyond the existing footprint, and the garden area must not exceed the size of the building footprint. Also, you cannot raise the roof as part of the permitted development.
When this type of permitted development is utilised, it can occur only once on the holding so you couldn’t for example convert two sets of barns in one yard if they exceeded the threshold of 865 sqm. You would also be unable to undertake any other permitted development on a holding for ten years, which is food for thought if a landowner intended to increase grain storage by the addition of a new building for example. Dividing the holding up sounds plausible, but isn’t an option as the Local Authority will expect a site and location plan.
Exceptions to the above, where a full planning application will be required, are Areas of Outstanding Natural Beauty, Sites of Special Scientific Interest, Conservation Areas, World Heritage Sites, hazardous areas such as military installations, anything with a Scheduled Ancient Monument, and listed buildings.
If the above is of interest to you or you have identified just such a farm building on your travels, please do get in touch with me at [email protected] and hopefully, we can find a way of making Class Q work for you.
Postcards from the futureCrawford Future Agriculture Members – Rural Consultant Chartered Surveyor, Bridget Slade & Agricultural Consultant, Max Perris – highlight in the attached article their insights into the relevant sector changes, future risks and technological developments the global agricultural insurance market will face within the next ten years in their detailed report.
Postcards from the futureAgriculture and associated risks
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