Norfolk farmer goes all-livestock to build resilience and increase profitability

David Cross of Glovers Farm is taking part in the AHDB Beef & Lamb Monitor Farm programme. To support this shift, he has modelled three cattle enterprise scenarios to determine the most suitable approach to meet the farm’s objectives.

Mr Cross explained: “Six years ago we realised that we needed to change what we were doing to ensure the long-term sustainability of the farm.

“The decision was made to move from a mixed arable system to all livestock, primarily to improve soil health, but it has multiple benefits in terms of removing input costs, balancing cash flow, risk reduction and making more use of environmental scheme options.

“This shift in focus meant we needed to investigate the options available to us when considering a beef enterprise. We originally had cattle on a liveweight gain (LWG) contract, but the reliance on high-quality forage to meet the targets, with the challenge of changing weather patterns and soil quality issues, meant I wanted to review our options.”

In-depth business analysis

The three scenarios modelled were: contract cattle (LWG contract), conventional suckler herd and organic store cattle. The systems were assessed for their impact on land use, feed resources, livestock productivity, and financial outcomes, accounting for key factors such as seasonal pasture growth, forage availability and financial sustainability.

Organic store cattle offer the highest gross margin but with increased risk and reliance on stewardship income and organic market premium. Contract cattle provide a lower-risk, low-labour option with a balanced cost structure but requires high-quality pasture. Conventional suckler herd offers long-term security but has higher labour and variable costs, resulting in lower financial returns.

The analysis also looked at the impact of animal health issues and highlighted that contract cattle and organic store cattle were at particular risk from restrictions as these systems rely on being able to move cattle.

Mr Cross said: “Modelling the three scenarios and how they would work for our situation was really 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 in the wake of the more frequent extreme weather events we have been facing, increase profitability and ensure the farming practices we adopt are sustainable.”

Take into account risk tolerance and long-term goals

Katie Evans, senior knowledge exchange manager (beef & lamb) at AHDB, said when making decisions, it is important that farmers choose an enterprise model that supports their overall business strategy, taking into account risk tolerance and long-term goals.

“We have published a report that takes you through the process David has been through which includes a decision matrix that farmers can work through themselves.

“This will help evaluate trade-offs between financial returns, operational requirements and environmental impacts helping farmers make a well-rounded decision. It is also important to consult industry experts to better understand risks, especially when it comes to animal health,” she concluded.

AHDB is holding a webinar with David Cross on 19th March where you can hear more about what he has done on his farm and the decisions he has made to set his business up for the future. Visit the AHDB events page to book your place.

For more information about Glovers Farm, including the review of beef enterprise options for Glovers Farm, click here.

Find out what climate change means for UK farming according to AHDB here.

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