RIDDINGS LANE HOUSING FEASIBILITY STUDY PREPARED BY G R SURTEES AGRICULTURAL CONSULTANT 1 Report prepared by Graeme Surtees The author gained his formal training at S.A.C, Edinburgh and at Essex University where he gained a B.Sc. Degree in Agriculture. The author is a member of the British Institute of Agricultural Consultants. The author advises on all aspects of Farm Management and specialises in Dairy herd management. His time at present is split between Farm Business Management Consultancy and managing a large farmer controlled business across Lancashire and Cumbria. 2 Consultant’s report into Riddings Lane – Housing requirement Contents: A) The farming Enterprise. B) Labour Requirements. C) Assessment of Labour required to reside on site. D) Summary and conclusion. By Graeme R Surtees B.Sc. (Agric) M.B.I.A.C 3 Farming: Riddings Lane, Bentham, Lancaster, LA2 7AH Area: 210 acres, 85 hectares Livestock: 192 Dairy cows. 180 Dairy Young stock Cropping: 210 acres of Grassland 4 Report on the Farming Enterprise at Riddings Lane A. The Farming System Riddings Lane is approximately 210 acres (85 hectares) of which all 210 acres are farmable The farm is purely a grassland farm The livestock farming enterprise consists of the following numbers of breeding stock: - Dairy Cows 192 Dairy Cows 180 Followers The cropping farm enterprise consists of: - Grassland 210 acres 5 Occupational Conditions Riddings Lane Tenants (60 years) Lifetime tenancy, 2nd generation 120 acres Showfield Lifetime tenancy, 2nd generation 20 acres Heifer rearing unit 5 year FBT 58 acres Shirley’s Annual FBT 12 acres 6 Winter Management The Dairy cows are housed all year round, and calve throughout the year. The young stock is housed from early October until late April, though often supplementary feed is required outside. A “rota” system is currently operated to cover nights whilst calving and breeding is in progress. At least one staff member is required to be on site at any one time to complete “night duty”. It is not practical for this to be left solely to one family member. If additional assistance is required at calving or breeding then additional members of staff may be called upon to help at any time. This can frequently lead to an individual travelling to the calving pens on more than one occasion during a night to assist in a calving if difficulties arise. Summer Management During the summer dry cows and in-calf heifers are managed in groups according to condition. As grass is the cheapest feed a great deal of attention is placed on grassland management for dry cows and heifers. 7 Fixed Cost Structure The labour force on the farm consists of one full time managing partner and one part time partner. In addition, there is one full time employee on the farm, and one part time employee who are employed on a regular basis to cover busy periods. Other fixed costs and overheads (such as power and machinery costs, depreciation of fixed equipment, property charges and sundry overheads) are substantial. As one might expect with a Dairy enterprise, particularly high input as this is, the business is more labour intensive. Managing these costs to optimise returns has become ever more important. Attention to detail and greater management is being demanded at all times. More of the time is taken up with management tasks rather than day-to-day physical tasks. 8 B. Labour Requirement Livestock Dairy Cows: 192 @ 35 hours/hd 6,720 0 – 6 months old 60 @ 18 hours/hd 1,080 6 – 12 months old 60 @ 6 hours/hd 360 12 – 24 months old 60 @ 10 hours/hd 600 Followers: Livestock Total 8,760 Cropping Grassland: Cropping Total 85 ha @ 20 hours/hectare/annum 1,700 9 Miscellaneous Maintenance 10% of all other hours 1,046 TOTAL REQUIREMENTS 11,506 Hours expected of European man: 2,200 Staff Required: 5.23 Staff Available: 1 full time partner 1 part time partner 1 full time employee 1 part time employee n.b. All figures quoted are from Agro Business Consultants, issue 52 10 C. Housing Development: Riddings Lane There is a need for additional housing on the site of Riddings Lane to assist with the livestock and business management. Over recent years the farming business at Riddings Lane has expanded rapidly from 40 cows to the present 192 cows and will increase further to over 200 cows. All the additional livestock has been farmed from Riddings Lane with non pregnant heifers being reared at the heifer rearing unit which is 1.5 miles away. Agriculture is a dynamic industry and individual businesses need to react to situations as they are presented. The business was sustainable with 40 cows but it now needs circa 200 cows to remain profitable and sustain the families who rely on it. This has led to the changing circumstances as regards housing requirements at Riddings Lane. Management of this unit continues to become more complex and more demanding. There is a need for: Constant Diet Formulation Avoidance of Waste Improved Margins Cost Control Pollution Control Bio-security High Herd Health Cross Compliance As part of the continued farm improvement programme Mr Mason now feels the need for additional on-site housing. If all the above management requirements are to be met then another member of staff needs to be on site. 11 This housing requirement has been required by the business for some considerable time. However the recent crisis in agriculture has made it necessary to focus on getting every issue right. The substantial investment made at Riddings Lane demonstrates Mr Mason’s commitment to Agriculture. The current pressures being faced by agriculture will allow Mr Mason to continue to expand the business as opportunities arise. Labour requirements for the business demonstrate the need for a minimum of a five-man team. At present only the full time partner and part-time partner live on site and there is no service accommodation attached to the business. All other staff members reside away from the farm in their own accommodation, which is some distance from the farm. There is an urgent need, to continue the development of Riddings Lane, for further on site service accommodation. Further business progress can then be more easily attained. 12 Riddings Lane Summary of Report Prepared By Graeme Surtees 1. Graeme Surtees is a Farm Management Consultant working throughout the North of England, specialising in Dairy Herd management. 2. The report analyses in depth the size of the herd, the farming methods of Riddings Lane and farm labour requirements. 3. Size of Herd at present Dairy Cows 192 Followers 180 4. Farming Methods Riddings Lane specialises in milk production, with current yields averaging 10,000 litres per cow. As a dairy unit with the difficulties brought about by its location and land type, it needs to be better than average to survive in an increasingly difficult market. The business also sells surplus heifers to help in this respect. 13 5. Autumn Labour Requirements: - The herd is housed. Preparation and care of the calving cows is the primary task. Field work and harvesting is completed Round the clock supervision is essential Winter The herd is housed. Feeding and health care are the primary tasks. The herd undergoes task such as foot trimming, vaccination, tail clipping. Round the clock supervision is essential Spring The herd is housed. Preparation and care of the calving cows is the primary task. Spring work and grassland management is undertaken. Round the clock supervision is essential Summer The herd is housed. The Dairy followers are managed at grazing. This involves high input of labour and management. Field fencing, fertilizing and grass conservation together with general husbandry are principle tasks. Round the clock supervision is essential 14 6. The writer/consultant considers requirements to be as follows: the total labour Total labour hours required by the unit are 11,506 A European standard man-year is only 2,200 hours Working time regulations, 1999 The farm business requires 11,506 / 2,200 = 5.23 employees/workers. Labour at Riddings Lane has for sometime worked to a week of 55 hours. (Agricultural Wages Act – June 1995). One employee will undertake 2,500 hours of work, after allowing for holidays and sickness, to match their industrial counterparts. The figures quoted are averages for a full calendar year’s work. The presence of at least one qualified person is necessary to manage the Dairy Herd of such high calibre. The danger of animal illness and animal losses are then overcome. Holiday entitlement per person is 28 working days. One person needs to be present to cover each of these periods. 15 Conclusion With high value livestock it is imperative that the environment is controlled and well managed so that the highest standards of animal welfare can be achieved. This will only be achieved by the construction of a second dwelling to provide 24-hour supervision for employee use. This development is required to allow the continuing improvement of Riddings Lane, as without it the future of the unit may become in doubt. The unit must keep pace with the rest of the industry to allow it to prosper in these increasingly difficult times. 16