Farming Talk: How data led farm reviews can drive efficiencies post BPS

Several data-led farm management systems already exist – with Savills running its own platform for its clients.

Suitable for farms of all sizes and scale, we typically adopt a field-by-field (rather than crop-by-crop) approach, with data sourced from at least the last five years.

Everything from field sizes, crop types and detailed input costs are recorded, alongside figures for historic and projected yields.

These results are then compared to soil type and drainage reports in order to extrapolate key findings.

By going into granular detail we can build a comprehensive picture of a farm’s performance – identifying trends and tracking yields over time.

Say, for example, hundreds of pounds has been spent on fertiliser applications for ‘Field A’ – but yields have not increased sufficiently to create a high enough margin. We can use the same data to identify other land uses that generate a greater income. This could include:

1. The development of a reservoir to raise the land value (often a minimum £1,000/acre increase for farms with water availability).

2. Options under the Environmental Land Management scheme (ELMs) such as the highly profitable AHL2 which introduces winter bird food on arable and horticultural land (£853/ha) or IPM2 which adds flower rich grass margins or in field strips (£798/ha)

3. Planting of new woodland through the England Woodland Creation Offer and for carbon credits which can be value guaranteed through government schemes

4. Development of sites for biodiversity net gain (BNG) which can be used to sell BNG units and raise funds for further capital expenditure (roughly £35,000 per unit tied into a 30 year agreement all paid for upfront)

In a recent example for a client with a large farming estate we identified options worth more than £800,000 in extra income over a three-year period – with potential to climb to circa £1m. This is a three-fold rise on previous performance and represents a significant improvement on margins.

Of course, data can only do so much. You still need the skills and expertise of traditional crop husbandry and agronomy to drive change and identify which improvements will be suitable. But, similar to an engine, we can fine tune performance and ensure every part of the ‘farm machine’ is working effectively and running smoothly. Starting with a detailed analysis ensures the best chance of success.

Will Davies, food and farming consultant at Savills in Telford