AGRICULTURAL ENGINEERING ASSOCIATION

SUBMISSION TO THE NEXT GOVERNMENT

Introduction

Agricultural engineering – the manufacture and supply of tractors and farm machinery – has a vital role to play in the support of world agriculture. It was ahead of many other industries in responding to the globalisation of the market place.

At first the UK benefitted from this because several of the multinational tractor companies had manufacture and assembly plants in this country, supplying not only Europe but the Middle East and Africa also. In the last two decades several of these companies have switched production to the Continent or to South America. As a result the UK has moved from being a net exporter to a net importer of farm equipment.

Similarly, the Outdoor Power Equipment industry – the manufacture and supply of equipment used in public parks, corporate facilities, golf courses, sports grounds and consumer lawn and garden is an important sector and has also become more multi-national.

Nevertheless the Farm and Outdoor Power Equipment industries still have a substantial UK presence. The industry has a total value [production plus imports] of £4.1 bn. In 2008 £1.6 bn of domestically manufactured farm machinery was exported, mainly to Continental Europe.

The General Economy

The perception of the AEA on current policy needs is as follows:

European Industry:  The 2008/2009 fiscal world crisis has brought the economic dominance of the USA and Asia into sharp relief.  The future prospect is of intense competition, with China producing more high value quality products to satisfy not only its own expanding market but for sale elsewhere in the world.  At the Lisbon summit the EU pledged itself to develop the knowledge economy but it is the United States that is consolidating its lead in this area.

At the same time as the world population is predicted to increase to 6 bn by the year 2050, the demographics for Europe show that the working-age population by that date will have fallen by at least 18% and the numbers of those aged over 65 years will have increased by 60%. Irrespective of the need to climb out of the current crisis, how is Europe (and the UK in particular) to prepare itself for these developments which will have a direct bearing on GDP growth rates? 

Food Security and Climate Change. Leading figures in world agriculture, gathered at the Food and Agriculture Organisation in November, agreed that to meet developing world scale food shortages

(a) every advantage should be taken of scientific and technological innovation in food production, thus confirming the key role to be played by GM technology and agricultural engineering;

(b) that public and private investment in agricultural infrastructure had to be increased throughout the world in order to intensify and expand food production; and

(c) there should be more open trade in food products between countries, both developed and developing.

 Against this background the agricultural engineering industry has good prospects for development but needs a background of macro economic stability and an academic and institutional research capability to complement the product research undertaken by companies. Governments have a major role to play in both of these objectives.

Competitiveness:  Every effort must be made to increase and improve the competitiveness of European and UK industry.  Without resorting to a command economy governments are able to use public finance to stimulate business activity in the manufacturing sector. There is a need to re-iterate the basic principles which are:

a. The development and encouragement of an enterprise culture.

b. Improving the performance in industry of science, research and innovation.

c. The development of a skills base relevant to the global economy.

d. Supporting exporters and re-establishing the UK as a leading destination for inward investment.

e. The delivery of secure, sustainable and affordable supplies of energy.

AGRICULTURAL ENGINEERING AND OUTDOOR POWER INDUSTRY SPECIFIC POLICY REQUIREMENTS

1. Research and Development:  Agricultural engineering research is in danger of being pushed to the margins. The emphasis in all of the proposals for the investment of public funds to improve food security has been on the biological sciences. Since the closure of the Silsoe Research Institute [formally the National Institute of Agricultural Engineering] in 2005 there has been very little public funding allocated to farm equipment research in the UK.  Large companies have of course improved their own products and the best of the SMEs have kept at the front of the market but there is scope for wider more academic research into such subjects as electronic instrumentation and controls, precision agriculture, automated inspection systems, new materials for machinery construction, water quality and management and energy conservation.

Defra has the main policy responsibility for dealing with food security. At least three of the Research Councils have a project responsibility affecting food security. Research Councils UK and the Technical Strategy Board have done much to encourage multidisciplinary research and are attempting to co-ordinate publicly funded programmes. However the fact that agricultural engineering has been neglected could indicate the need to establish in the UK a National Institute of Food and Agriculture, similar to the NIFA created in the United States earlier this year.  This would be a focused body with overall responsibility for the direction of policy and co-ordinated programmes of research into food supply and quality and crisis management.

Action taken by the industry:  The industry has created the Land Equipment Research Partnership with assistance from the Bomford Memorial Trust with the object of bringing together a record of the total agricultural engineering research capacity in the UK in order to make the relevant options known to companies seeking product improvement.

Action required by the next Government: There is a need to stimulate and assist in funding the agricultural engineering sector research base to complement the work the companies are doing. In particular, strategic pre competitive research including how machinery can be developed for a low carbon environment.

Establish in the UK a National Institute of Food and Agriculture (as in the USA).  This would be a focused body with overall responsibility for the direction of policy and co-ordinated programmes of research into all aspects of food supply, quality and crisis management.

2. Employment Skills:  Like many of industries in manufacturing there is a need in agricultural engineering to improve the quality of skilled labour and to attract good candidates to take an interest in a career in the industry.  In the opinion of the AEA the Learning and Skill Council has proved to be insufficiently responsive to this need and should be restructured to increase the policy input from industry.  Skilled staff are needed, not only in manufacture and assembly but also in the provision of after-sales service. A large percentage of the companies rely on recruiting skilled staff from other firms in the industry as well as training and promoting their own employees. The increasing sophistication and complexity of tractors and land based equipment requires many employees to have a good understanding of electronics and IT systems.

The introduction of more flexible short-term courses for the Graduate, Engineering Technician, and Chartered Engineer designed to increase skills and to enable them to deal with emerging technologies.

More positive incentives should be provided to both SME employers and workers for career transition and some line training and support.

Action taken by the industry:  The Association was a partner with LANTRA and the Institute of Agricultural Engineers in the creation of a common industry standard for Land based Technician Accreditation [LTA] training. This gives employees a qualification status and career path that will encourage them to stay in the industry. 

Action required by the next Government: A future government should again review the school’s curriculum to include increased provision of science, technology, engineering and mathematics related subjects.

3. Open Markets and Competitiveness:  Our industry in the UK is composed of British companies looking for markets abroad and multinational global suppliers. Both of these categories are looking to the government and the European Union to develop a trade policy that leads to free and fair trading conditions internationally and effective internal market surveillance. Within that framework the industry is also looking for access to energy and raw materials at reasonable and competitive prices.

The Association advocates strong resistance by the government and the European Union to any form of protectionism. In particular we currently deplore the barriers raised by the Russian government to the import of combine harvesters and other types of land equipment in the defence of its home industry. Similarly the seizure by the French government of imported outdoor power product on the basis of debatable safety concerns, as a means of depriving the manufacturers of access to a profitable market, is unacceptable and in the circumstances difficult to contest in the French courts.

In view of the failure to conclude a satisfactory outcome in the Doha Round of WTO negotiations, the AEA fully supports the pursuit by the European Union of bilateral trade and political agreements. In the opinion of the Association these agreements should include matters outside the scope of the agreement sought by the WTO, including public procurement [many developing world contracts for tractors and land equipment are contracts with governments], the strengthening of Intellectual Property rights [product sophistication is an important advantage in developed world manufacture of land equipment], and the breaking down of trade barriers similar to those mentioned above.

In the interests of both the agricultural and outdoor power sectors of the industry, the Association believes that there is a need for a future government to continue to monitor closely the Chinese business and regulatory environment.

Action taken by the industry:  The Association has developed a valuable system of market intelligence including the collection and distribution of industry statistics, which sharpens competition between companies within the industry and assists with the management of an efficient after-sales service to the benefit of the customer. It also actively supports the industry’s European organisation, CEMA, in seeking to identify and break down international trade barriers.

Action required by the next Government: The Association advocates strong resistance by the government and the European Union to any form of protectionism. There is also a need for a future government to continue to monitor closely the Chinese business and regulatory environment.

4. International Standards: The progressive globalisation of manufacture and trade in agricultural engineering and other industrial sectors leads inevitably towards the need for the recognition of a single source of product regulation and manufacturing standards.  The Association believes that national standards institutes have no substantial role to play in this scenario and could be reduced in capacity and eventually phased out.

In the UK the BSI has become principally a publishing agency for CEN and ISO Standards. Within the present structure the profit made from the sale of standards should be used more beneficially to assist the industries that it serves.

A substantial amount of the standards co-ordination work of BSI is now performed by trade associations and other agencies. The transition from a national to a European (CEN) or International (ISO) platform could occur without undue disruption and with an immediate cost saving to government and to purchasers of standards, many of whom have contributed time and resources towards the agreement of the standard. 

Actions taken by the industry:  The Association is a substantial participant in standards committees at all levels and acts as chairperson and co-ordinator of many CEN and ISO committees of direct relevance to the industry.

Action required by the next Government:

1. Review the role of BSI and transfer savings to the benefit of the industry it serves.
2. To fund key associations, such as the AEA, that can provide advice and expertise to under resourced government departments such as DFT and BIS. Funding is the key.

5. Export Support: Throughout Europe there is an emerging awareness that economic dependence on the service industries has its dangers and that an imbalance has developed between invisible and visible trade. In parallel with measures to encourage manufacturing, governments (including the UK) will have to put more emphasis on the promotion of exports. It is only in this way that the balance of payment can be improved and wealth generated to pay inflated national debt.

Action required by the next Government: The Association recommends:

-        The reinstatement of financial assistance to Small and Medium-sized Enterprises to enable them to take part in overseas sales missions and trade fairs.

-        The introduction of a system of Trade Credit Insurance to cover the failure to receive payment, particularly in contracts with purchasers in developing countries that are regarded with suspicion by UK banks.

-        to organise its export support by sector: at present support for export activity is administered on a regional basis. Overseas missions and other co-ordinated export programmes are organised on an industry or sector basis.

-        Make a determined effort needs to be made to improve the quality of UKTI representation abroad. This has been done in the past but in the struggle for orders competing nations are constantly upgrading and expanding the overseas support given to their own national corporations.

-        Conduct an urgent review of the aims and outputs of the International Agri-Technology Centre [IATC] on the promotion of UK skills and expertise in the agri-food & related technologies sector.

6. Tractor/Trailer Testing:  The industry has queried whether many agricultural trailers in use by farmers have sufficient braking power to be classed as safe on the highway. There is also frustration on the part of farmers (and country road-users) that by UK regulation tractors cannot be driven at speeds faster than 20 mph and that maximum weight loads are limited to 24,390 kgs.

The AEA would combine these linked policy issues into one proposal, namely that trailer/tractor braking tests be introduced and that, for such combinations meeting enhanced criteria, the maximum permitted road speed for tractors with front suspension be raised to 30 mph and the maximum weight load be increased.

Currently at speeds below 20 mph an agricultural trailer must have a braking efficiency of not less than 25% but a 50% level would be part of the higher requirement within our proposal. 

A new braking Directive is to replace the existing Directive 76/432/EEC in 2011/12. The new controls will make trailers without safe braking systems impossible to sell (although a substantial part of lower specified trailers will exist for many years to come).

Actions taken by the industry:  The Association has entered into negotiations with the Department of Transport, NAAC, NFU and BAGMA with a view to agreeing the appropriate changes to the law and creating a network of centres equipped to undertake the necessary testing. It does however believe that the testing of the braking system on the tractor is an integral part of the overall safety check and this has proved to be controversial.

Action required by the next Government: DfT to change the law to permit users to meet improved speed and weight requirements subject to appropriate testing.

7. Pesticides - The Voluntary Initiative:  In the last 40 years the world population has nearly doubled. Agricultural technology has kept pace with food demands and globally farmers are now producing more per head of the population than 40 years ago. Will the same be said in 40 years time? Insecticides, herbicides and fungicides reduce crop losses both before and after harvest, and increase crop yields. They are however chemical substances and must be used with the utmost care.

The farming industry has faced that responsibility by joining with environmental groups to create the Voluntary Initiative which is designed to promote best practice in the use of pesticides by farmers. Collaterally the NFU is also promoting the Crop Protection Management Programme to its members as part of the Voluntary Initiative.

The AEA believes that any further control or restraint that may be considered necessary to limit the use of pesticides, can be accommodated and administered within the framework of the Voluntary Initiative. 

Actions taken by the industry: The Association administers the National Sprayer Testing Service. NSTS ensures that sprayer machines used in agriculture are properly calibrated (a speed check can be included as an option should the machine owner wish to have the electronic control system checked) and deliver pesticides as efficiently as possible, with minimum impact on the environment.

Action required by the next Government: Governments must be realistic that they have no chance of feeding the world by organic means alone. Pesticides do provide a pragmatic and increasingly safe option. Any further restraint from the EU should be resisted and the work of the Voluntary Initiative and NSTS should continue. 

8. Machinery Directive: The Association supports the EU type-approval system. A new Machinery Directive [2006/42/EC] will come into operation on 29 December 2009. This will be complimented by the introduction of a revised Market Surveillance system for the harmonisation of safety controls throughout the EU. The AEA welcomes the strengthening of common machinery standards in the Single Market and is anxious that the enforcement should be adequately monitored by the European Commission. The conformity of products imported, predominately from countries in the Far East with lower safety standards, is seen as a priority.  

Tractors have long been the subject of separate type-approval legislation dealing with all aspects of safety. The Association notes that on this account tractors have been excluded from the Machinery Directive in all respects except those risks not covered by tractor type-approval. The Association believes that any such inconsistencies can be brought within the tractor type approval regime quickly.  

Action taken by the Industry: The machinery directive guidance document first edition is 337 pages long and will be revised in spring 2010 and again in December 2010 and this is likely to produce a document of over 400 pages and that in itself highlights the size of the task ahead for the industry. Over 600 CEN standards have been modified to accommodate the changes and offer an aid to compliance.

Action required by the next Government: The biggest challenge is to ensure that the industry follows the new requirements and to provide it with supporting documentation and guidance in the wake of policing and authority mandates and in cohesion with the 27 EU member states. This is a huge undertaking and needs to be recognised fully by Government.

9. ATV – A tractor or a motorcycle? The issue at present is that the definitions show the ATV to be a machine and covered by the Machinery Directive when off-road. Complications arise with the UK DfT/BIS interpretation and the EU Commission not deciding whether on-road ATV vehicles should be placed in either the Motorcycle Directive or the Tractor Directives for type approval (2002/24/ EC and 2003/37/EC).

A new category in the Tractor Directive is favoured by the UK authority. The choice of the appropriate licensing class and the introduction of new safety standards will add to the continuing confusion.

The AEA is in discussion with the DfT and BIS on a new category of definition for ATV vehicles but an early resolution of drafting problems is not expected. The side by side vehicles (seating for a passenger adjacent to the driver) may also be subjected to a type approval process and resource to progress this issue is required from within the industry with assistance from the UK participants.

Similar category problems occur with telescopic handler machines with ambiguities resulting from the application of conflicting Directives and Regulations.

Action required by the next Government: There is an urgent need to resolve the category of definition for both ATVs and side by side vehicles.

There is also a need to clarify the road licensing position for these vehicles and for a further clarification of the permissible use within concessionary agricultural classifications.

10. Excessive legislation: The Association endorses the new approach to policy making and regulation based upon a thorough impact assessment, consistency of policy objectives, cost-effectiveness, through consultations with industry and with an understanding of the need for adequate lead-times before new regulations become effective and with account being taken of the affordability of the regulatory demands.

Actions taken by the industry: The Association’s CEO is a member of the government’s Better Regulation Task Force.    

Action required by the next Government: There is a need to ensure that there is better regulation not more regulation!

Roger Lane-Nott

Chief Executive Officer

Agricultural Engineers Association

RESEARCH PRIORITIES ALSO NEED TO INCLUDE AGRICULTURAL ENGINEERING

The Royal Society Report “Reaping the benefits: Science and the sustainable intensification of global agriculture.” (News 23 October) examined the contribution that could be made by biological sciences in solving the developing problem of global food security. 

Agricultural engineering research also has a positive contribution to make towards the search for a sustainable agriculture that meets the needs of an expanding world population. Land machinery innovation was the main force behind agricultural expansion in the last two centuries. In this century the task is to respond to new scientific developments in agriculture outlined in the Report, to make crop treatments more precise and plant specific and to play a key role in sustainable farming practice and land management.

In recent years there has been a retreat by UK government from funding research in agricultural engineering, marked especially by the closure of the Silsoe Research Institute (formerly the National Institute of Agricultural Engineering) in 2005. 

In the context of the “Grand Challenge” of providing food security over the next 40 years a reasonable proportion of the research budget needs to be allocated to the public finance of innovative and radical engineering ideas and research into the even more efficient and environmental compatibility of land equipment.  The multinational companies in the agricultural engineering industry can be counted upon to finance the evolution of their own products but Small and Medium Sized engineering enterprises will require public assistance if they are to respond to the new demands.

As suggested in the Report, co-operation between the Research Councils and with industry is essential. The Research Councils currently fund no agricultural engineering projects at all! Eventually the seriousness of the situation may justify the establishment of an overall Agricultural Research Development Agency with responsibility to co-ordinate public research expenditure and to relate UK research initiatives to those being undertaken elsewhere in the world. 

I watched Countryfile last night on BBC 1 and was shocked at the extraordinary bias that the BBC and the programme showed. Three specific points:

1.They showed a piece on ‘guerilla gardening’ which was defined on air as, and I quote “the illicit use of someone else’s land!” Promoting breaking the law

2. Julia Bradbury - fresh from the Farmers Weekly Awards - was in the Mountains of Mourne and was supporting a National Park when farmers and those who own the land have been conserving the area for generations. Another example of ridculous jealousy and very poor policy.

3.This is the worst. There was a piece with John Craven investigating why organic farming is having such a bad time. I know the answer to that - organic food costs too much. But then the BBC hired a professional branding company to give organics a makeover! That is gross misuse of public money and outrageous promotion.

I would now like to ask if the BBC can give 5 minutes to the other side of the story. So, I challenge the BBC and Countryfile to give 5 minutes to the case “for pesticides and why the National Sprayer Testing Scheme is providing the correct controls.

I was at the Dairy Event a couple of weeks ago and it struck me that despite what appeared to be good attendance, quizzing machinery manufacturers and others there was no real appetite for the move to the NEC in 2010. Indeed this was confirmed at the AEA Farm Equipment Council this week.

I have tried to understand RABDF’s motives here. Is it that they just want to expand that show? Is it that RASE is charging them too much and not providing the facilities they need? Is there some other reason?

Regardless, I am concerned that the machinery manufacturers see this move as an increas in costs for them. Maybe stand spaces will be the same in 2010 but what about 2011? There is alos a considerable feeling that the RABDF did not consult machinery manufacturers about this move more closely and before they made their decision.

I hope this does not come back to bite but I would only say remember the lessons of Smithfield!

The Agricultural Engineers Association was founded 132 years ago and is the Trade Association for the manufacturers, distributors and importers of Farm Equipment and Outdoor Power Equipment. Its members include all those companies involved in supplying machinery for the land from combine harvesters to secateurs and everything in between.

We have seen a major shift over the last 20 years with UK manufacturers declining or being absorbed into multinational companies. The number of independent UK manufacturers of Farm Equipment is now small but all the major companies have a presence in UK and market their machinery within UK.

As agriculture has changed so has the machinery with AEA members always close to the changing requirements of end users. But their customers are, in fact, the dealers although they do engage fully with the end users. This results in key relationships with their dealers and agreements that try to assist both.

The industry has for some time been concerned about recruitment, training and retention. This is particular relevant as machinery becomes ever more sophisticated and requires technicians that are both highly trained in diagnostics as well as repair. Whereas 20 years ago this was based on experience and spanners it is now based on high quality training, experience and a laptop!

To start with recruitment, the industry has a careers project which has concentrated on attracting the dealership technician. This is predominantly funded by the dealers and probably needs more industry co-ordination but it is producing results.

Training is a complex business as there is a need to have good raw material before training starts. This is not easy as the education system is not producing young people with an acceptable level on basic skills. There is then a need to train on the core competences (hydraulics, pneumatics, mechanical, electronic etc) and achieve an acceptable level before the product specific training is undertaken.

To ease this situation the AEA Training and Education Committee spent 2 years working on a scheme that would assist this process and at the same time help retention by providing a better recognised career structure for technicians.   What they came up with was the Land based Technician Accreditation Scheme or LTA for short.

With the backing of the major manufacturers of agricultural, horticultural, forestry and groundscare equipment, the Landbased Technician Accreditation scheme (LTA) has been developed by the AEA Members in conjunction with the IAgrE with the support of BAGMA, on behalf of the land based engineering sector.

The objective of the scheme is to provide a nationwide means of benchmarking, monitoring and assessing the competence of technicians employed within the sector. The LTA scheme will also provide encouragement and recognition for both employers and technicians who voluntarily commit to continual professional development in pursuit of technical support excellence.

There are four categories or tiers with all tiers being registered on a central database held by IAgrE.

·         LTA 1 – Self registration on-line. Entries on this register would be categorised as either Apprentices (on recognised programmes) or more skilled/mature entrants not yet otherwise assessed and categorised. There is currently no charge to register.

·         LTA 2 - Newly qualified apprentices or assessed skilled technician meeting the required criteria.

·         LTA 3 - A skilled & experienced technician who has successfully attended a series of assessed course programmes - may be a product specialist.

·         LTA 4 - A professional technician having a proven and assessed track record. Additional assessment criteria are included to demonstrate exceptional diagnostic and technical ability together with customer and technical mentoring skills.

The scheme has been established by the leading manufacturers to give credit and recognition to the developing skills and knowledge of technicians working in the land based sector. All training is accredited by the relevant manufacturers in conjunction with the employers to guidelines agreed jointly with them, IAgrE and Lantra. The scheme also provides a clearly defined career path for those working in the landbased engineering sector. The LTA scheme is backed by the trade associations representing:

·         Manufacturers - AEA

·         Dealers –BAGMA(UK) and FTMTA(Republic of Ireland)

LTA is administered by the IAgrE, the leading UK professional body representing scientists, engineers and technologists in the landbased sector. Where appropriate, IAgrE facilitates the registration of suitably qualified technicians as Engineering Technicians (EngTech) with the Engineering Council (UK). For those companies with European-wide interests, the LTA scheme is approved by EurAgEng as meeting the requirements for recognition as EurAgEngTech.

LTA. The Scheme

Those registered under the LTA scheme will be technicians working in the fields of:

·         Agriculture

·         Horticulture

·         Amenity (including professional and domestic groundscare)

·         Forestry/Arboriculture

·         Environment

Through their work on the maintenance and repair of equipment in the various sectors, they will be supporting the production of:

·         the food for your table

·         the timber for your paper, furniture and building

·         bio-fuels for a sustainable future

and the maintenance of outdoor recreation spaces for the well-being of the environment and our amenity.

In these times of rapid change, and with the ever increasing complexity and sophistication of tractors, harvesters and groundscare equipment, there has never been a greater need for competent technicians. By registering and assessing these technicians, we are not only recognising their professionalism but also providing the confidence to consumers that their equipment is being cared for by qualified and competent staff.

This is a start but we also have to look at how machinery is going to be used in the next 30 years and adapt to suit. There are some who think that all machinery will be run remotely from an Operations Room in the Farm Office but while this is feasible today there is the problem of Health and Safety requirements, and crossing roads to deal with. Some say that we need to change how we farm and here modern techniques are driving the design of machinery. There has been a greater demand in the last few years for higher horse power tractors to allow economies of scale and the completion of seedbed preparation with less passes. But there is another consideration and that is regulation. The EU is continuing to pour out new legislation on noise, emissions, vibration and a plethora of environmental demands that will not always help farmers (viz. The EU parliament pesticides decision in December 2008) and will continue to have an effect on machinery design and price.

So what is utopia for the Machinery Sector? In a time when we know the demand for food is going to continue to increase there will continue to be an increasing demand for machinery to meet the needs of the producer. While the solution may be to have tractors and self propelled equipment that is run on fuel cells and charged overnight from ideally a renewable energy source this may not be possible in all but the most advanced farms. So the machinery sector is left with trying to anticipate where farming is going, respond to regulation but try also to influence both regulation and standards, and continue to offer a quality career.

It is the view of many in the sector that landbased industries are being hit less hard than other sectors and that the current recession is helping with retention and recruitment of technicians to our industry, although transfer of skills from automotive to the landbased sector will take time. Manufacturers don’t seem to suffer from recruitment issues, as progression from dealer to manufacturer is seen a natural progression through the industry so recruitment directly by AEA members is less of an issue.

It is the view of many in the sector that landbased industries are being hit less hard than other sectors and that the current recession is helping with retention and recruitment of technicians to our industry, although transfer of skills from automotive to the landbased sector will take time. Manufacturers don’t presently seem to suffer from recruitment issues, as progression from dealer to manufacturer is seen a natural progression through the industry so recruitment directly by AEA members is less of an issue. The fact that the current situation may be stable should not blind us to the possibility that events may change – in fact just a few years ago recruitment was identified as a significant potential problem, especially at dealer level, and it could be again. Farming families are a potential pool of resources as individuals who understand agriculture and its demands but at the same time the design and production of farm machinery has become highly sophisticated and there is also call for significant engineering skills.

What do you think? Do you agree? Have you a better career planning process than we currently use in Agricultural Engineering?

Announced today are new proposals for EU automotive Encap standards which have, until now, concentrated on the safety of passengers. The new proposals require safety features for the protection of cyclists and pedestrians.

I can’t imagine what they think the car manufacturers will do but the question that comes to mind is will this be expanded to include all vehicles and, in our case, self propelled agricultural vehicles. We are awaiting further details but this raises again the  issue of safety of farm vehicles on the road. You will probably be aware that I believe that ALL self propelled agricultural vehicles should have an annual roadworthy test similar to all other road vehicles but, not surprisingly, the NFU does not agree. From my research I would question whether they really speak for the majority of farmers and contractors.

It is indefensible to have any vehicle on the road that is not required to be taxed insured and tested annually for roadworthiness. If you agree please let me know. If you don’t I would welcome details of your reasons why agricultural vehicles should not be tested.

Roger Lane-Nott - Director General

Manufacturers have been reporting their views post LAMMA. It was a positive show for just about everyone with farmers attending in their droves. Only in UK could you see a farmer in the middle of January in the north of the country eating an icecream! 2008 represented a peak in the investment cycle and business levels can be expected to ease but their remains a degree of mild confidence based on good orders and the expectation that the farming community is relatively well placed to ride out the economic storms.

Rising input costs raised the requirement for working capital at a time when the banks were holding their lending, despite various government schemes to get it moving again. It is also clear that while banks were saying at LAMMA that there is no problem in lending to farmers the position is not the same amongst some smaller manufacturers. We at the AEA may be in position to help here.

So, cautious optimism is the overall view but no one really knows what is going to happen in 2009. Do you agree or do you think it will get worse or better or plateau?

My team and I managed to get round to see most members during LAMMA last week and I hope it was a good event for you. I hope you liked the stickers!

I sensed a view of cautious optimism and it would seem that farmers and contractors are taking a long term view and dealing with the short term issues as they arise.

The main problem facing the industry is holding prices in the face of a weak currency, continuing inflationary costs of production resulting in low margins. Whilst there are concerns over the impact of the serious international recession it is generally held that agriculture is much better situated than most industries and for the longer term there is a boost from the belief that farming will be fully recognised as an important industry as food security grows in prominence and the contributions it can make to the environment and to climate change are recognised.

I did establish that while there seems to be little change in the banks lending to farmers, smaller manufacturers ( even with a 15 years + record) were not receiving the same response. Is that true for you?

How was LAMMA overall for you?  Chris Evans will be doing a short survey soon to establish your views.

Do you agree with the view of cautious optimism? If you don’t what is your view?

Roger Lane-Nott

This web site and the blog will, I hope provide a suitable opportunity to discuss issues and find solutions to many industry problems.