Farm Assurance Schemes

Are they worth it and if you’re not a farmer have you ever even heard of them?

I was lucky in that when they were coming in, I was out of dairy and was buying calves and selling store cattle. So I managed without the extra expense. I did finish a handful of cattle but I sold them direct to the consumer. I sold my customers an eighth of a bullock (because when it comes to freezer space, the janet and john formula is one lamb is half a pig is an eighth of a bullock). My customers didn’t care about farm assurance schemes, and weren’t interested in knowing about them. In reality I was my own farm assurance. They were buying from Jim. They knew me, could drop round and even be introduced to their animal beforehand if they wanted.

I was also involved peripherally in a body called ‘Cumbria Local and Fair’ at one point. In simple terms the Fair Trade movement has done a lot of good around the world for a lot of people. There doubtless places where it could do better and places where people take advantage, but across the board I’d say it has done a lot of good.

Now the idea was that the principle could be extended to Cumbria. After all, farmers in Cumbria (and the rest of the UK) deserve a fair crack of the whip. We should no more be screwed by major retailers than our fellows in the third world (or in any other part of the world for that matter.) There were problems. Some of it was about scale. One supermarket was interested in selling Cumbrian milk from its Cumbrian supermarkets. It’s not one of the big chains, but even so, they were rather shocked to discover that one Cumbrian dairy farm (and not an especially big one) could provide all the premium Cumbrian milk they needed. Cumbria is physically big and with twenty million visitors a year we can get crowded, but there’s fewer than half a million of us who live here all the time.

Another problem was expectations on the part of people wanting to set things up. One idea was we could try Cumbrian beef. Now I looked into it and did the basic research. I could have arranged this comparatively easily and cheaply. Because all cattle have individual passports it’s far easier to arrange than, for example, with lamb. So to be ‘Cumbrian Beef’ the animal has to be born in Cumbria (which is easily proved from the passport and we’ve got plenty of dairy and beef units with cows to produce the calves) and must live all its life in Cumbria. Again this is easily done. If the animal is born on a dairy farm and is sold to somebody who will rear it for beef, the animal’s passport will show which farms it has lived on. It will even show the auction marts the animal has passed through, and Cumbria has a lot of good auction marts.

Finally it is possible to get the animal slaughtered in Cumbria and it could then be delivered to the butcher, if necessary with a photocopy of the passport accompanying the carcass. It means the consumer could go into the butcher’s shop and know they were buying Cumbrian beef.

I talked to people in the trade and they agreed that actually that sort of thing could be done for very little extra cost. Initially there would be very little extra money in it, but the beauty of the system was that, without really costing anything, it would respond to consumer demand. So if customers started asking for Cumbrian beef, butchers would ask the abattoir to send them more. So the buyers standing round the rings at Cumbrian auctions would start putting in an extra bid or two to make sure they bought the guaranteed Cumbrian stock. Slowly the price might rise and you’d get a Cumbrian premium. But even if you didn’t, it had cost you nothing.

The problem is that this wasn’t enough for people who wanted to set up a scheme. They wanted to guarantee extra welfare, or have extra restrictions on feed or whatever. Even if these extra criteria cost nothing, you would still have to organise members and police things. You’d need an organiser who did on-farm inspections etc to make sure that the rules were being obeyed.

As somebody pointed out to me, given a £30k salary, car, and computer, even if they worked from, home you were going to struggle to keep the cost below £50,000 a year.

If you got a hundred farmers to sign up for it they would have to pay £500 each every year with no guarantee that they would see any of the money back because you cannot guarantee a premium. As far as I could see there was no way you could sell that to farmers. Most would think that you’d probably got more chance of getting your money back betting on the horses.

But this is one of the problems at the heart of farm assurance schemes. By law we have very high standards in the UK. In a lot of areas we are ahead of Europe. For example in the UK (and I believe, Sweden) sow stalls are banned. In the rest of the EU, to quote Compassion in World Farming, “Their use is limited in the EU, with a partial ban enforced from 2013. However it is still permitted for sows to be kept in sow stalls from weaning of the previous litter until the end of the first 4 weeks of pregnancy.”

So in reality we already have a whole UK farm assurance scheme. We produce in the UK to UK standards and the various UK authorities who are in charge of monitoring these standards stand behind them.

Now by definition there are costs you face as a farmer when it comes to producing food in the UK that you wouldn’t face in some other countries. (To be equally fair they will have costs we don’t have) If, on top of these standards we introduce farm assurance schemes with higher standards there will be more cost. There will be the costs of running the schemes etc and all these costs fall on the farmer members. There will also be the costs of meeting these standards. This is entirely acceptable if there is a premium being paid to cover these costs. The problem is, if you have a universal scheme that aims to cover all UK farmers, there cannot be a premium because everything is produced to that standard and that standard is the norm. The danger is that the scheme becomes a protection racket, ‘If you don’t hand over the money you won’t sell in this mart’.

Now the universal scheme covering all UK farmers would work, but only if the buyers are the far end valued it. But we see grain buyers buying farm assured UK grain and mixing it with imported grain that doesn’t meet UK farm assurance standards. We see manufacturers mixing UK farm assured meat with meat from elsewhere in the world, buying on price rather than quality.

And here is the problem. Actually pushing up farm standards is the easy bit. The important part of the system is getting farmers a premium for the high standard produce. But there will only be a premium if the consumer actually cares about your standards.

And here we run into another problem. I have talked to family and friends who aren’t in farming and have discussed farm assurance schemes. They immediately used to tell me about their experience with introducing British Standard (BS) 5750. Its equivalent in European Standards is EN29000 and in the International Standards Organisation ISO9000. These standards lay down formalised procedures and require documentation but do not as such lead to improved quality of the product. I’ve had no end of people tell me about the ‘work arounds’ and ‘fudges’ that they had to make to ensure that their employers systems were fit for BS 5750. One lady mentioned that she, as a very junior employee, was given the job of documenting how they ordered from all their suppliers.

She did the job, the boss was pleased and they got BS5750. Ten years later she happened to see the file on a shelf and opened it out of interest to see who had updated it. There was her work, pristine and untouched. In the ten years they had changed all their suppliers but nobody had ever bothered updating the paperwork. But they’re still BS5750.

So just having an ‘assurance scheme’ isn’t going to impress anybody. Most of our consumers are involved in fudging the data for something similar.
So who should the assurance schemes target if cynical consumers aren’t going to be bowled over with them?
The buyers are an obvious first step. But most major retailers would rather set their own scheme up. It allows them to lock in farmers and can be a useful marketing tool. Why would a supermarket want to drop those advantages to join a national scheme ‘everybody’ is part of? They get absolutely no marketing advantages at all.
The crucial point is that with a national scheme all suppliers are part of, the people you are really targeting are your overseas competitors. If we can get them to meet our standards to sell in the UK, then this will put their costs up and make it harder for them to out-compete us. All this needs is a government that bans the import of food products that do not match our standards. To be fair I suspect the ban on all EU pork products other than Swedish is not going to go down well.
Across the board, at the moment, with governments borrowing at unprecedented levels and with unemployment about to increase massively throughout the US, the UK and the EU, this is not a time when governments are going to do anything that raises basic food prices. Their electorates are not going to put up with it.

♥♥♥♥

There again, what do I know about it all, go to the expert.

 

A collection of anecdotes, it’s the distillation of a lifetime’s experience of peasant agriculture in the North of England. I’d like to say ‘All human life is here,’ but frankly there’s more about Border Collies, Cattle and Sheep.

As a reviewer commented, “This is a selection of anecdotes about life as a farmer in Cumbria. The writer grew up on his farm, and generations of his family before him farmed the land. You develop a real feeling for the land you are hefted to and this comes across in these stories. We hear of the cattle, the sheep, his succession of working dogs, the weather and the neighbours, in an amusing and chatty style as the snippets of Jim Webster’s countryman’s wisdom fall gently. I love this collection.”

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8 thoughts on “Farm Assurance Schemes

  1. rootsandroutes2012 February 5, 2021 at 6:13 am Reply

    FWIW I can manage instant recognition of three of the nine logos in the grid – the ‘Little Red Tractor’, the Fairtrade logo (which gets pretty heavy free promotion through quite a few churches), and the Soil Association Organic Standard. How have they influenced my behaviour?

    Little Red Tractor – in reality barely at all, and not at all during a pandemic when no one should be rootling through the stock in search of a logo which isn’t always printed on that part of the packaging which will be visible on the shelf.

    Fairtrade – a little. It has influenced my buying patterns in product lines like tea, coffee and anything that includes a meaningful proportion of cocoa beans – not known for being British products unless you count the rather niche tea being grown in my Cornish homeland.

    Soil Association Organic – I’d buy a short dated organic product in preference to a long-coded ‘normal’ one, as the premium would normally be more than wiped out.

    As for the others, well most of the concepts are familiar, but not the logos. Just my tuppence worth…

    • jwebster2 February 5, 2021 at 6:36 am Reply

      Thanks for that. I suspect your response is about par for most people.

  2. Chel Owens February 5, 2021 at 6:37 am Reply

    Reminds me of a slight push to buy local, around here. From your experience, no, it doesn’t sound like an assurance is worth pursuing.

    • jwebster2 February 5, 2021 at 6:39 am Reply

      Thanks for that. Given the amount of hours spent trying to get paperwork sorted to document compliance it is a sore point in a lot of farming households

  3. Eddy Winko February 5, 2021 at 6:43 am Reply

    It looks like the selling direct model is the best, it seems to be very much on trend in lockdown, I just hope it continues.
    We had someone (from the city) trying to raise money for an assurance scheme, saying that we could open up our market to more people (in the city), but nobody in our small community network of farms took it up for the very reasons you suggest.
    After all we manage to sell what we have at a premium to the people that visit us.

    • jwebster2 February 5, 2021 at 8:35 am Reply

      That’s the crux of it
      They can work with people who are trapped in commodity production, as it has the potential lift the value of their commodity if the work is done in making sure buyers have bought into the concept

  4. Cathy Cade February 5, 2021 at 3:47 pm Reply

    As an unsuspecting shopper, I do learn a lot from this blog

    • jwebster2 February 5, 2021 at 7:17 pm Reply

      One of the worries is that with farm assurance, in theory you should feel it’s worth your while to remember them and look out for them. If you don’t, it’s not your fault, it’s the fault of the scheme.
      I’m not sure the way round it. I wonder if some of the problem is that the organisations running them spend too much time trying to convince farmers and not enough time trying to convince the public?

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