The Farmers Mart Apr/May 2016 - Issue 45 | Page 64

Dairy & Cattle BURNING STRAW TO INCREASE YOUR WHEAT PROFIT MARGINS First step towards industry-led guidance on farm animal welfare »»GUIDANCE ON A RANGE OF farm animal welfare codes is to be devolved to industry groups under a government move towards deregulated standards. Defra secretary Liz Truss is overseeing the plans as part of her department’s move towards the creation of “industry-led guidance” on animal welfare codes. The first step will saw a transfer of the code on chicken farming to the poultry industry on 27 April, which is when the British Poultry Council (BPC) released guidelines. From then on it will be in charge of writing new animal welfare guidance. Defra said it would also begin work to deregulate guidance in other livestock sectors, including the pig, cattle and sheep farming industries. A Defra spokesman said: “No changes are being made to farm animal welfare legislation or the strict enforcement and penalties that apply. Instead, the British Poultry Council has produced non-statutory guidance on how to comply with the legislation. “The industry-led guidance can also be used as evidence in court to prove criminal liability and will ensure farmers have the most up-to-date and practical information.” In a statement, the BPC said: “Without this change in Defra policy a large number of statutory codes would never be reviewed. BPC chairman John Reed said: “We were determined to ensure that we protected the integrity of the code. It was critical for the BPC to achieve the endorsement from Defra to ensure its credibility and acceptance by charities, retailers and the industry itself. “A robust review procedure will be put in place to ensure that the requirements in the code are kept up to date with any new legislation and research.” The BPC said it also planned to review and update the duck and turkey codes in 2017. But the government’s shift towards deregulation has come under fire from shadow Defra minister, Kerry McCarthy. Ms McCarthy, Labour MP for Bristol East, said: “Abandoning codes of practice for farm animal welfare is not in the best interests of the animals and will not produce higherquality food. In the wake of food scandals from horsemeat to campylobacter, scrapping government standards risks undermining public confidence in the food we buy.” 64 Apr/May 2016 www.farmers-mart.co.uk »»WHEAT PRICES WERE ON a downward trend throughout 2015 and early 2016, reaching a six-year low at the end of February. HOW DOES RHI STRAW BURNING STACK UP? RHI (Renewable Heat Incentive) is a government incentive to reduce the UK’s carbon footprint by removing our dependency on carbon fuels for the production of heat. Once signed up to the RHI incentive, the payments are index-linked and guaranteed for the next 20 years. The mid-range RHI incentive is currently paying 5.24p per kWh of heat produced. The annual contribution from a biomass boiler is calculated by multiplying the size of the boiler (in kWh) by 1,314. This figure is then multiplied by the RHI payment level. For example, a 600kWh straw-burning boiler is capable of generating 788,400 kWh equating to £41,312 per year. To generate this level of heat requires approximately 250 tonnes of straw. By burning your straw through our RHI approved Straw Biomass Boiler you will increase its value from £36/tonne to £162.65/ tonne, drying your grain and heating your property in the process. But this is only stage one. The other major benefit comes from the production of 789,600kWh of heat. Even taking into account the current low price of heating oil (2.8p/Kwh), generating this amount of heat from straw could save you in the region of £22,108 of heating oil costs. IMPRESSIVE RETURNS To summarise, by burning 250 tonnes of straw you gain a gross return of £62,772. 250 tonnes of straw (at a retail value of £36/tonne) represents a book value of £9,000 which gives a net profit contribution of £53,772. For example, take 1,000 acres of arable land yielding 3.5tonnes/acre - giving a total yield of 3,500 tonnes of wheat. With the contribution from straw burning you could increased your net profit margin by £15.36/ tonne. There is little doubt with the RHI incentive, we believe that straw burning boilers have become as essential to an arable farmer as his combine harvester. A typical installation will pay for itself in 3.5 years, securing a £50,172 index-linked profit contribution for 20 years. For more information our video is a ‘must’ watch and with over 1,700 views to date, this clearly demonstrates the level of interest far-sighted farmers are showing in our Straw Burning Boiler. To view video: http://www.farm-power. com/Biomass_boilers. html or visit http://www. gfpbiomassheating.co.uk