‘Matrix’ helps Norfolk farmer build resilience and boost profitability

• Mixed farm switches to all-livestock

• Change secures future for business

• Other farms can do same process

A Norfolk beef and sheep farmer is switching from a mixed arable system to an all-livestock operation to improve farm resilience and performance.

David Cross – who is an AHDB Beef & Lamb monitor farmer – modelled three cattle-based scenarios to decide how to meet his objectives at Glovers Farm, Sedgeford, near Hunstanton.

“Six years ago we realised that we needed to change what we were doing to ensure the long-term sustainability of the farm,” he says.

Soil health

The switch to an all-livestock operation was made primarily to improve soil health. But it has other benefits too – including lower input costs, a better cashflow, reduced risk and an enhanced environment.

“This shift in focus meant we needed to investigate the options available to us when considering a beef enterprise,” says Mr Cross, who used a decision-making matrix to help decide his farming future.

“We originally had cattle on a liveweight gain contract but the reliance on high-quality forage to meet the targets – together with the challenge of changing weather patterns and soil quality issues – meant I wanted to review our options.”

Three scenarios

To do this, Mr Cross modelled three different scenarios which he considered for his farm. They were contract cattle reared on a liveweight gain contract; a conventional suckler herd; and organic store cattle.

Each system was assessed for its impact on land use, feed resources, livestock productivity and financial outcomes. Key factors measured included pasture growth, forage availability and financial sustainability.

Organic store cattle offered the highest gross margin. But modelling showed that they involved an increased risk and reliance on stewardship income – as well as a reliance on an organic market premium.

Contract cattle were lower-risk with a lower labour requirement. But they required higher-quality pasture. Conventional suckler herds offered longer-term security but more labour and variable costs, resulting in lower financial returns.

Animal health

The analysis also examined animal health implications. Contract and organic store cattle were found to be at risk from movement restrictions in the event of a disease outbreak.

“Modelling the three scenarios and how they would work for our situation was useful to understand the pros and cons of different systems and how they could fit into the overall aims for the business and its future.

“The long-term goals I have set are to improve resilience of the business, especially [to the] extreme weather events we have been facing, increase profitability and ensure the farming practices we adopt are sustainable.”

Decision matrix

The AHDB has since published a report based on Mr Cross’s findings. It walks farmers through the decision-making process – and includes a decision matrix so other livestock producers can undertake the same exercise.

AHDB senior knowledge exchange manager Katie Evans says: “It’s important farmers choose an enterprise model that supports their overall business strategy, taking into account risk tolerance and long-term goals.”

Evaluating the trade-off between financial returns, operational requirements and environmental impacts aims to help other livestock producers reach a well-rounded decision for their own situation

Copies of the report can be downloaded from the AHDB website. “It is also important to consult industry experts to better understand risks, especially when it comes to animal health,” says Ms Evans.