Farming in Crisis Spotlight

This land provides for �1 billion farming industry that many hope

will revitalise our economy. But behind that aspiration, the outlook

is grim. In my 46 years, I have never seen

it as bad. If we are going to stay the way we

are, I don't see a bright future for farming.

Farmers are hurting. Could our demand for cheap food be

responsible? The cost of food will have to go up.

Hopefully farmers will get some of that. Otherwise they won't be there.

They will just disappear. It was one of the wettest summers

on record, and the economic forecast for farmers is bleaker

than at any time in decades. With the rural economy at breaking point,

just what is the future of farming Summer rains this year and

extraordinary flooding. Four months on, the consequences are still

being felt on the land. It is early November in County

Armagh. The sowing season has come and gone. Land like this remains

unplanted. This field would normally be bursting with vegetable

ready tobg harvested but because of the atrocious summer it wasn't

planted in June. The cost of this to farmers is huge and right across

the countryside fields like this are lying baron.

Thomas Gilpin has never known things to be as bad as this. He

provides large quantities of farm produce for supermarkets. But even

where his farmers have been able to plant fields this year, they have

had scant return. You see here Brian, there is not

even tops on these swedes. That's never going to be a swede.

They are badly under sized? They have plenty of nutrients and plenty

of anything and because of the lack of sunshine and heat they haven't

grown. I would give awe fiver if you could find find one...

that's a descent size? A descend size.

-- -- a descent size. The supermarkets wouldn't be

interested in those? People want one you can peel. Those beds are

sitting up out of the wet and they just haven't grew. In my 46 years,

I have never seen it as bad and it is just, there is nothing we can do

about it. Everybody involved in the sector at the moment from the

grower, right through to the washer and packer like ourselves right

through to the man making the preparation of it all, nobody is

making any money. In fact, everybody is losing a bit of money

at the moment and there is going to have to be something done so people

can be sustainable for the next year's crop. There is a crisis.

Thomas says the the outlook is grim and expects many in his sector to

go out of business this winterment even even potatoes are imported. It

is not just bad bad weather that brought bad news to an industry

that's at breaking point. These pigs are all that's left of a

700 strong herald kept on a once thriving farm outside Cookstown.

Only these sows remain. They are on a final journey from farm to meat

processor and for the farmer, it is the end too of a 20-year investment

in pork production. When you walked up the yard, you heard pigs

squealing or something, but there will be no more of that for a

highly anyway. When you look into a house and it is empty, it is

demoralising. James can no longer afford to feed

them and feels forced to send these breeding animals to the abattoir.

He thinks they will ultimately end up on dinner tables in Germany. It

is a rapid reversal of for ture that led a prize winning pig farmer

to wind up operations and slaughter his herd.

Six months ago, I hadn't anticipated this, but it is the way

the feed prices went up. The price of feed and bread and all those

things went up. . How much do you get per pig?

need about �135 per pig and we are only getting �120.

Every animal going out through the door is losing money and that's why

I decided to stop rather than keep losing money. If it was profitable,

at least I'm starting off with a clean sheet, other people have to

make back what they have lost before they start again.

High feed costs and poor prices hit pig farming hard, especially since

the sector is not subsidised. The houses for over 700 animals are

now empty. James Millar designed and welded each pen himself. Now,

they are redundant. His entire Even those farmers who do receive

subsidies are struggling. This is Ray Elkin, a beef farmer who says

business is more uncertain than ever. Today is the day he has been

dreading. His cattle are being tested for TB.

If this vet finds even one of the cattle tests positive, this farm

will be closed for months. It will mean that the farmer can't sell any

of them. He will incur all the expense of feeding them for the

foreseeable future too. It is a nervous time for you?

Absolutely. It is not only a nervous time, it is a dangerous

time because we are letting out animals into a yard who are quite

lively and it is a risk to them, but not only to them, but also to

the human being. Every time you let an animal into a

yard, there is another possibility of someone getting hurt.

The family used to breed pigs, but found it difficult to make a profit.

Beef was good business, but it is now a question of working just to

cover costs. It has got worse. It has changed.

It used to be the pigs and then that went by the way side and it is

constant hard work for very little reward.

The possibility of TB is not the biggest worry by any means.

Prolonged wet weather has forced him to bring his cattle in from the

fields earlier than usual. They are already fielding on expensive

winter fodder. Times are difficult, yeah. Times

are difficult. We hope that next Across the industry costs have gone

in one direction - upward. And profit has either gone down or

been wiped out entirely. For farmers who want to sell their

stock, it is at places like this where the action happens. I have

come to Ballymena, the biggest auction for live stock in Northern

Ireland. I have been told that cattle prices

here don't compare to even 12 months ago. For farmers, returns

are too low and costs are too high. I think some of the figures we have

seen would suggest that annually in Northern Ireland we would use about

two million tonnes of feed and when you consider the increase in feed

costs, that will equate to �160 million and �160 million is just

about the net farm income here in Northern Ireland. So you know,

there is a lot of concern out there. I think the farmers are a resilient

bunch but they can only take so much, and it is a very sad

reflection on the industry that the profitability isn't there.

High costs hurt, but it is a series of factors that are hitting farming

hard. You get -- it has been a horrendous

year for weather as far as prices are concerned. They have stayed

static throughout most of the year and their costs are rising. They

are in a real classic income squeeze. So no, I don't think this

time they are crying wolf, they are in a genuine crisis.

And the crisis threatens to keep the next generation of farmers off

the land. The Taylors' farmed outside

Coleraine for generations. Denis wants to follow his father into

farming. Hi Denis. How are you? Well what

happened today? Oh just general feeding and get the houses cleared

for cattle. Are these for market soon?

Hopefully for market around Christmas time. Denis says the

returns from the land aren't enough. At the minute there is nothing to

encourage young people into farming and if things stay the way they are,

I will not be at it in a year's time or maybe two years time, I

can't justify it anymore and I have my family to think of. We are not

getting what it is costing us to produce the food. It is very hard

to explain how it feels to be in a downward industry at the minute.

People don't see the downs, it is a heartbreaking job at times too.

Nobody else would work for less than the cost of production. So why

should we? While the industry is frequently

referred to as a billion pound success story, farms here only see

a tinly fraction of this. A few months ago, Ulster Farmers' Union

members took their grievances to the consumer. They staged a protest

and opened a farm stall for the public, selling food at the price

they would get from supermarkets. It costs you �4.50. We only get

�1.50 for it. Farm Farmers say prices don't cover

their costs. A chicken at �1.15. That's terrible. It is disgraceful.

Absolutely disgraceful in this day and age. I love getting paid for my

job. They should be able to get paid for their job.

Derry farmers protested in England and Wales at the low prices

supermarkets and their suppliers were paying them for their milk.

Some big named store stores upped prices for farmers. Recent figures

show milk prices have risen here too, but for cattle farmers like

Ray Elkin, covering his annual costs remains a struggle, farmers

like him are clear on where the problem lies. They say relailers

simply -- retailers simply aren't paying enough.

The big retailers tell us they are buying X number of tonnes of

produce from Northern Ireland, why wouldn't they? It is below the cost

of production. This complaint is echoed across

Northern Ireland. Many farmers say they have been disregarded by the

retailer. It is a view shared by Sean McCauley who farms outside

Ballymoneyy. We are working below cost of

production figures. It is not sustainable. An industry that

provides one vital item that people need on a regular basis and that's

food. But quality food produced to the highest standards and the

producer on the ground is not getting paid for what he is

producing. Like others we have spoken to, Sean

believes that supermarket chains can afford to pay farmers like him

more, without adding to their customer's shopping bills. But

representatives for the supermarkets say the consumer comes

first. Retailers like those you represent

are making gigantic profits, billions of pounds a year, surely

they could give a little more to ensure the the of the agriculture

sector? As far as the market that we have here in Northern Ireland,

yes we work a lot with our suppliers. Yes, we do buy a huge

amount in Northern Ireland, but what we are trying to do is bring

that to a wider market. What we are trying to do is make sure that

there is a sustainable supply chain and we are trying to make sure

there is an affordable quality produce there for the consumer in

Northern Ireland. I have been doing a round of

meetings with the supermarkets and we are doing all we can to support

farmers. Are you talking to the supermarkets in such a way to get

them to give a fairer price? the farming minister and that's my

job. That's my role. We will continue to engage with them

because it is important we emphasise the smaller pricing they

are giving to farmers, it is important we highlight that issue

and how it is impacting on farmers income.

We asked the biggest supermarkets here why farmers weren't getting a

better deal? They said they were giving a fair price and they did

all they could to support the local farming industry. They pointed out

that farmers deal directly with processors. Are they keeping down

the prices? The processors said they were finding it difficult in

the current economic climate. In an industry where official figures

suggest an average of one farm closure every day in recent years,

they said more could be done on price by the supermarkets.

Well, our friends in the supermarket and I call them our

friends because we have to work with them, is going to have to

lower their expectations of their margin and give a little more as

one of the leading supermarkets say, "Every little helps." Is going to

have a little more to the people like ourselves who can give their

growers more or a lot of growers will not be here for next year.

Other processors say the market is ruled by the demand for cheap food.

It is easy to have a go at supermarkets in any discussion like

this. For the Northern Ireland industry, they are amongst the best

customers that we have. Yes, we would love them to pay for more but

they will be the ones who will tell us the implications from the point

of view of their customers. Supermarkets and processors told us

that it is the market that decides, that means you, the consumer. Do

you think that you would be willing to pay more at supermarkets to

support local farmers? Yes. If it was a Northern Ireland product I

would. Would you be willing to pay more if

you thought it would help the farmers? Of course, because I'm

from a rural area so the farmers deserve to get more money. They are

not getting enough. The supermarkets are doing the

farmers damage. People are looking for cheaper

prices, but it is unfortunate the farmers are suffering because of it.

Farmers protested across the UK, but our local meat producers get

less than our counterparts in Great Britain a and are losing up to �120

to �140 per animal. Would you say you got a different

price than the farmers in England, Scotland and Wales might might get?

We are producing to the same standard, in fact we hit those

standards before anyone else and the sister plants here and across

the water are buying the same kind of animals are are going to markets

at reduced prices, it is making life difficult.

Again, responsibility for this is unclear.

When we meet the processor, they blame the retailer. When we meet

the retailer, they say they are giving the same price to somewhere.

Somewhere along the line, somebody is telling porkies.

We put this to our main supermarkets, they declined to

speak to Spotlight. Some later told us they couldn't go into detail for

commercial reasons. We aren't the only ones wanting to

get to the bottom of price. Next year, Westminster will appoint a

grocery adjudicator charged with with investigating complaints about

prices paid in the sectorment until recently, the creation of this role

had been resisted by almost all of the UK supermarkets.

Why did the supermarkets resist the adjudicator for so long? I think

like all of these regulatory issues it is not a case of resisting, it

is a case of making sure what is put in place is the best for

everyone concerned. That it is a case that it is not regulation for

the sake of regulation. That it is not doubling up on regulation that

already exists and that it is fair and open.

We also asked the meat processors about the price difference. We have

a seasonal nature to our business as they have south of the border

which doesn't exist across the water in GB. That Seasonal side of

the business means for the past number of weeks we have seen prices

here weaker than they have been in So farmers are getting less money

here? At this moment in time in the autumn of the year whenever we are

in pig slaughter season, the reality is when cattle numbers are

at their highest, you will find our prices are weaker than they are for

the rest of the year. The farming union says this affects

us all, with Northern Ireland losing out to the tune of millions

of pounds a year, they say more should be done.

I think supermarkets need to appreciate the farmer more. Some of

our processors need to appreciate the farmer more. This summer,

within the beef sector, we have seen a price difference of about 40

pence per kilo between here and mainland UK and you know that

equates to about �140 an animal. It is about �1 million a week is being

lost to the Northern Ireland economy.

What is clear is that Northern Ireland and the businesses within

it, including farming, are part of a global picture now as never

before. Nick Price is one of Belfast's most established chefs

and restaurant owners. He has represented the food sector

publicly for several years and feels our relationship with farming

and the food it produces has to change.

We have had cheap food for a very long time. I think in the economy

that we are in the world at the moment, the cost of food will have

to go up. Hopefully farmers will get some of that. Otherwise, they

won't be there. They will just disappear.

Nick is one of those who argues that innovation is critical if

farms here are to survive. I don't think just because you grew

cows and sent them to slaughter, it is enough for you to grow cows and

send them to slaughter. That is not being anti-farming, moving forward,

we want a vibrant, profitable farming industry.

But it is the lifeline of European subsidies that keeps farming alive

here. Most of the aid, �0.25 billion arrives in the form of the

single farm payment.. People say it is unfair that farmer are

subsidised. You either pay the subsidy and you get cheap food or

you don't pay the subsidy and you have to pay a higher price for food

in the shops. But That subsidy is vital to farmers here and this will

be one of them and it is likely to be more than the total income from

farming. Many new farmers came into the business only after the

qualifying period for subsidies ended. As a result, they get

nothing. Sure the first thing the bank would ask me is how much is my

single farm payment for paying it back, so it was no benefit to me.

You don't get any payment? I don't get any payment. It is the first

thing the bank wants to know because it is the only sure money

you have. Three generations of Taylors have

worked the land here. The family isn't certain that a fourth

generation will follow. Until he can afford to move out, Denis lives

with his wife and children on his father, William's farm. William is

calling for action. Farmers like him propose that Europe can slash

subsidies in exchange for minimum price guarantees. We need a line in

the sand which gives the farmer a safety net, a safety net income

guarantee for his produce and until this is in place, we are not going

to win the battle with the large supermarkets. Thisser too big and

too powerful when they face against individual family farmers. We do

need this line in the sand and that line in the sand, we think, needs

to come from Brussels. Any solution to the big problems

with farming here rests with the EU. Reform to subsidised farming is

pending as nearly everyone agrees the current system is unsustainable.

It is the nature of the system that we live in where we want to support

farmers, to make them have viable businesses and also to keep the

price of food down. That's why we do it. But we now have, we have got

to the situation where the agriculture budget is half of the

total EU budget. A massive amount of money and and because of the

financial situation we are in there is pressure to produce that budget.

And in changing times, there will be those who get left behind.

farming industry is so vital to the many of our rural communities that

its survival is crucial, but that cannot let us be distracted from

the fact that in its current guise many of the farms are not viable.

Farming of tomorrow will not look like the farming of yesterday.

That reality is sinkinging in. The mood in the countryside appears to

be one of resignation, that for many their way of life no longer

seems viable. Sean McCauley, bleaches not enough is being done

by our politicians. The Admiral Turner mrtion at -- the

administration at Stormont could do more. The big question is are we

going to let agriculture go? Our agricultural colleges are full of

students at the moment, highest grades needed to get into them. Are

we we going to have an industry fit for purpose when they qualify?

People don't realise the pressure that some people are under.

Those trying to support farming communities have noticed a rise in

calls for help. Farmers are under a lot of pressure

at the moment, not only the weather situation, but financial

difficulties, issues around debt, mental health issues are also a

significant problem. We need to remember that the agricultural food

sector in Northern Ireland is vital to the Northern Ireland economy and

we need to provide support to farmers and to people involved in

the industry to ensure that it continues.

Stormont has created a Strategy Board to help develop the

agricultural food sector at home while promoting it abroad. The

Minister for Agriculture was in China last week in search of new

export opportunities. However, this Strategy Board has stated that it

will not address the vexed question of pricing. The main issue for many

farmers. Pricing and those issues are in the mix. They are all being

discussed and everything is on the table.

But pricing isn't discussed because you have said it is beyond your

remit? It is beyond my my remit m is there any way they can drive out

the costs we have? We have to look at those things and then farmers

will be producing in the most efficient manner which they can.

Others see real change on the horizon.

Many farms will close. We need to learn the lessons of those that

closed and look at those in existence and ask what changes

maybe required and that may mean mergers of farms. Co-operatives

forming. The financial difficulties in the

countryside are at at odds with the expectation and hope for the

agricultural food sector. How it can grow and develop when farmers

are clearly facing the most difficult of circumstances is a

mystery to many. At Ray Elkin's farm, the TB test

proved negative. His farm will remain open over the

coming winter months. Like many, he is determined to hold on, come what

may. When I met Ray, he wasn't going to do anything else. That was

him. He never wanted to do anything else. He had other opportunities

when he was younger, but he wanted to be a farmer and that was that. I

would say there is still people like that. We hope that we will

carry on. But what will the industry look

like in the next few years? One phrase I kept hearing was that