CAAV AGM and Conference debates biofuels and elects new President

New CAAV President - At the AGM of the Central Association of Agricultural Valuers (CAAV) held last Friday (8th June) in Bedford, Graham Martyn of the Cheshire Agricultural Valuers Association, and partner of Wright Manley, was elected President of the CAAV. Graham is joined on the CAAV Presidential team by Paul Clayson as Vice-President and Mark Webb as Junior Vice-President.

The Debate on Biofuels - It is time for UK farmers to start committing to growing crops for biofuels, a leading merchant told the annual conference of the Central Association of Agricultural Valuers on Friday, while the CAAV’s Secretary and Adviser saw reasons for caution.

Richard Whitlock, industrial crops director of Frontier Agriculture Ltd, urged valuers to encourage clients to consider producing crops for biofuel in the light not only of rapid advances in the potential to produce biofuel in the UK but also the EU energy aid payment that will be available for two million hectares throughout the European Union.

"I would recommend that everyone advises their farmer clients that they tap into the extra payment available," he said.

Global warming, an awareness of the long term depletion of fossil fuels and high fuel prices have contributed to growing interest in biofuels, he said, itself fuelled by high interest from NGOs and the media. Farmers across the world would respond to the opportunities where they increased prices.

Next year sees the first phase of the Renewable Transport Fuels Obligation (RTFO), in which sales of fuel for road vehicles will have to include 2.5% of renewable fuels, rising to 5% by 2010/11, helped by a range of incentives. The feedstock requirement for 5% RTFO will require 410,700 hectares, or 3.69 million tonnes, of wheat - which is achievable, Whitlock said -- and 796,000 acres, or 2.87mt, of oilseed rape (which is not).

Setting the scene for the growing interest, he reminded valuers that this was a new and uncertain territory for the United Kingdom. The EU/UK renewable fuel obligation is aimed primarily at dealing with greenhouse gas emissions and environmental issues, he said. "It is not primarily to support agriculture in the UK. But if we end up exporting our cereal surplus and importing biofuel, it would be a sad indictment of our industry."

He pointed to a run of interest comparable to "dot com" fever, characterised by huge investment, a lot of hype and, for some of the 11 biofuel plants proposed or already built in the UK, financial instability and difficulty in raising funding.

But merchants were in the process of signing a range of contracts, on a range of terms, with the established companies, and were looking for growers, he said, adding that as a buyer, Frontier would be driving greater efficiencies in ex-farm collection - a factor that he was geared to towards reducing transport costs and wastage.

Jeremy Moody, Secretary and Adviser to the CAAV, also expressed caution about supplying the industry, but said he recognised the enormous opportunity it will offer some growers. "I think we may remain in primary food production but benefit from the impact on prices of land diverted to biofuels in other countries benefiting from greater sunlight," he said. "The important thing is to maintain flexibility, such as offered by annual crops." He warned that "today’s sources of biofuels may be replaced as technology evolves" while the impact of CAP reform illustrated the risks of depending too closely on government initiatives. Already pressed livestock sectors have reason to be more cautious - there were new by-products from biofuel processing but strengthening cereals prices increased input costs.

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