D&S Farming Matters: It was change to organic or get out of milk

Tumbling prices for conventional milk, plus the fact that his farm misses out on environmentally sensitive area payments by just one mile, led to his decision to convert.

"The decision was to change or to stop milking," said Mr Fawcett, "But this is a good little cow farm and I still wanted to milk cows."

He was addressing a gathering of farmers who visited Woodhall Park Farm at Woodhall, near Askrigg, on Friday of last week.

The decision to go organic was made in July last year and his 46 Holstein Friesian cows are yielding 6,122 litres, slightly higher than last year.

The biggest conversion expense is the installation of a new slurry store. The existing one holds only 10,000 gallons which is routinely taken out in a muck spreader. Mr Fawcett now has to install one which can hold a whole winter's slurry so it can be applied at the most appropriate times.

"It needs to hold about 260,000 gallons." he said, "It will be about 14ft tall and 60ft wide. It will spoil the farm a bit, but we either do it or pack in. We need that muck for the organic system."

The farm has also signed up with Zenith Milk, which has long term contracts with buyers. Some of its customers have agreed to pay an in-conversion premium to farmers who are changing over to organic production.

Mr David Rees, eastern area manager for Zenith, said that arrangement showed the long term commitment from their buyers. "Without it, they would not have been willing to pay an in-conversion premium," he said.

Mr Rees said there was a growing demand for organic milk and pressure to replace foreign imports with home produced milk.

He also confirmed Zenith was looking at the possibility of sharing transport to drive costs down.

The visit to Woodhall Farm was organised by WF Banks of Askrigg and Strutt and Parker at Northallerton.

Mr Andrew Smith of Strutt and Parker said the biggest problem with switching to organic production was the two-year conversion period.

"The premium is there after that so, if you can get through the practicalities of that time, then fine, but it is where you are starting from that matters," he said.

Dales farms are normally straightforward to convert to organic as there is little change needed. However it could be a totally different picture for intensive farms which might have to have a large reduction in stock which, in turn, could have a major impact on cashflow.

Timing was always important - in some instances poor timing could increase the conversion period - and a detailed plan should be drawn up.

In some cases farms might be able to offset the two years without premium by qualifying for the countryside stewardship or environmentally sensitive area payments.

He urged farmers not to be put off converting by talk that premiums might fall. "The premium is here at the moment and you can take advantage of that," he said, "But it is like anything else, as supply comes in line with demand the price may come down."

He also urged farmers who did start converting to contact their MAFF regional service centre to let them know.

The government had still to announce how much and when more MAFF conversion grants might be available. "But you should let them know what you are doing and ask them to acknowledge your call with a letter. You can then try applying for a conversion grant when they come back." he said.

Mr Ian Watson, managing director of HF Seeds, said getting the right balance of grass and clover was the key to success. "It is absolutely crucial; the cornerstone for any organic production."

Mr Fawcett earlier said he was pleased with how good the forage yields had been. "The biggest worry is how much grass we can grow for conservation, because you cannot afford to run out of winter fodder," he said. "But we have been surprised to see we have as much in the clamp this year as last."

Mr Watson said there should be no worries about grass yields. "None whatsoever if you are getting the balance right," he said, "You can produce much the same with organics as with the conventional system."

Indeed he said many conventional farmers could do better if they used more clover.

Mr Watson said early spring was a good time to get clover seed in. The best stitching-in process was in a grazing field where grass would be kept short allowing the delicate clover plants to get away out of any shade.

Mr Jim McRobert, general manager of WF Banks, said farmers had got to want to farm organically. "It is not a get out for people for the way the industry is at the moment," he said. "It is a different way of farming which can be as profitable as conventional and, it is hoped, more profitable.

"It is a way of getting off the treadmill of every time the price drops you have to double your cows, or whatever."

As the government switched money away from headage to area payments, he believed that one way Dales farmers could increase their profitability was by going organic.

And, as a specialist blender, he believed WF Banks was ideally suited to help. Large manufacturing plants would not find it cost efficient to keep changing lines when the demand would not be particularly great.

"As a blender we can manipulate what is required in the feed," he said, "Our own mill is able to be set up very quickly, it is very simple and very, very adaptable to suit the organic system."

He told the farmers that WF Banks had a dairy customer in Scotland who was determined to be the first to produce 10,000 litres on an organic system.

"He has 350 cows and a new rotary parlour and is doing 12,000 litres conventionally," said Mr McRobert. "He wants to do 10,000 litres organically. We have our work cut out, but I am sure we will do it."