executive summary - skills support for the...

Future skills needs in the York, North Yorkshire and East Riding Local Enterprise Partnership Area

Transitional Area: East Riding

Agri-Tech:Agriculture

Beyond 2030 has produced this Report on behalf of Calderdale College and as part of the College’s delivery of the 2017-18 ESF funded Skills Support for the Workforce programme across the York, North Yorkshire and East Riding Local Enterprise Partnership Area.

July 2018

YNYER Future Skills Needs – Agri-tech. Agriculture subsector

Executive Summary York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has

commissioned a series of research reports, which will allow key decision makers to understand more fully the future skills needs of the YNYER LEPs eight identified priority sectors.

Agri-tech, where technology is being utilised to provide solutions to problems in agriculture, farming, and food production and distribution, is growing in importance. The focus is on increasing productivity through technology and data rather than developing more land for agricultural use.

It is estimated that Agri-tech directly accounts for £14.3bn in value-added and 542,000 jobs across the UK. The sector is dominated by the agriculture (farming) subsector, but other key subsectors include research and development and the supply of technologies.

This report considers the agriculture subsector within the wider Agri-tech sector. Beyond 2030 spoke with 8 employers in this subsector across East Riding and relevant

stakeholders such as the Stockbridge Technology Centre, the Society of Dairy Technology, Lantra, Chartered Institute of Horticulture, and East Riding Council to inform this report, in addition to drawing on the sources mentioned in the bibliography.

Transitional Area of East Riding

East Riding has a resident population of 337,700, of which nearly 160,000 individuals are employed. Employment rates stand at 76.2%.

The East Riding economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of the area.

Large employment sectors include health and social work, manufacturing and retail.

Agriculture in Agri-tech

Agriculture accounts for over 70% of land use in the UK. The LEP area has a diverse and robust agriculture base. Agricultural production in East Riding

is recognised as an important sector in their Local Plan. The East Riding area had 1,931 agricultural holdings in 2016. This is the equivalent of 2% of

all holdings in England. 54% of land use in the area is for cereal and 19% arable crops. Pig and poultry farming are

also key industries. Employment in agriculture stood at 5,965 in 2016 in the area. 87% of the total labour on

farms is accounted for by the farmers themselves and those with whom they have an immediate family or business relationship.

56% of the workers are full time, 32% part-time and 13% casual labour. Jobs are concentrated in two major occupational groups; skilled trade occupations and

elementary occupations. Only 9% of the workforce are aged under 25 and 28% are over 55 in the subsector. This

compares to 13% and 18% respectively in the whole economy and could point to significant challenges in future recruitment.

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There are recruitment opportunities in the sector, with firms using specialist recruitment agencies/boards to advertise technical roles. However, recruitment was reported to be challenging, particularly in some specialist areas.

13% of the subsector workforce does not have any qualifications and a further 17% hold ‘other qualifications’. Only 4% of agricultural jobs are subject to some form of entry-related occupational regulation such as licensing, certification, registration or accreditation.

Agricultural holdings are increasingly adopting new technologies, which require skills development. Most skills though are learnt on-the-job.

Just 1% of all apprenticeship starts in East Riding were on an Agriculture, Horticulture or Animal Care apprenticeship. This is surprisingly low given the importance of the subsector. However, the size of holdings may mean that they are unable to offer the range of experiences require to complete an apprenticeship.

Employment numbers in the subsector is expected to decline by 21% between 2014 and 2024 across Yorkshire and Humber. But replacement demand means that there will be 7,000 job openings in the same period.

Individuals in the subsector will be more highly qualified in the future. With new technologies such as automation and robotics, demand for engineering and mechanical skills will be seen.

Acknowledgements Beyond 2030 would like to extend thanks to the employers in the TA area as well as both local and national stakeholders who provided their time and assistance in giving us valuable insights into the issues facing the subsector. These include:

• Lantra.• The Stockbridge Technology Centre. • The Processors and Growers Research Organisation. • The Society of Dairy Technology. • Chartered Institute of Horticulture.• East Riding Council.

Beyond 2030 is indebted to Calderdale College for the guidance and support received in completing this report.

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ContentsExecutive Summary...............................................................................................................................2

Acknowledgements...............................................................................................................................3

1 Introduction to the LEP and the research......................................................................................5

1.1 Agri-tech sector.....................................................................................................................5

1.2 East Riding TA........................................................................................................................6

2 Agriculture in Agri-tech, East Riding..............................................................................................7

2.1 Introduction...........................................................................................................................7

2.1.1 Subsector definition.......................................................................................................8

2.2 Agriculture economy and employment.................................................................................8

2.2.1 Jobs people do...............................................................................................................9

2.3 Skill needs - Primary research and testing the data.............................................................11

2.3.1 Recruitment.................................................................................................................11

2.3.2 What are the current skill needs and gaps...................................................................12

2.3.3 Skills needs / gaps........................................................................................................13

2.3.4 Training........................................................................................................................14

2.4 Apprenticeships in agriculture.............................................................................................14

2.5 Future requirements............................................................................................................16

2.5.1 Future workforce in the agriculture sector in Yorkshire and Humber..........................16

2.5.2 Future roles and skills..................................................................................................18

2.6 Drivers.................................................................................................................................18

2.6.1 Political........................................................................................................................18

2.6.2 Economic.....................................................................................................................20

2.6.3 Social............................................................................................................................20

2.6.4 Technological...............................................................................................................21

2.6.5 Environmental..............................................................................................................22

3 Bibliography.................................................................................................................................23

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1 Introduction to the LEP and the research The York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has commissioned a series of research reports which informs key decision makers as to the future skills needs of eight identified priority sectors. These sectors are:

• Visitor Economy. • Food Manufacture.• Voluntary, Community and Social Enterprise (VCSE). • Health and Social Care. • Construction. • Engineering. • Agri-tech.• Bio Renewables.

As the economic and political situation changes, it is almost universally acknowledged that improved skills, not least because of the link to enhanced productivity is a key way by which to improve economic well-being. Consequently, LEPs across England are looking at how best to support sectors with growth potential and which therefore may generate future wealth and prosperity.

In this research Beyond 2030 seek to understand fully the future skills needs required to ensure that within the YNYER LEP area, priority sectors can recruit and develop world class employees.

As well as wanting to understand the characteristics and future needs of the eight sectors, the LEP hopes to develop an understanding of the most significant subsectors in each priority area by geography.

1.1 Agri-tech sector The YNYER LEP has five priorities in its Strategic Economic Plan. The second of these priorities is the aim to be, ‘a global leader in food manufacturing, Agri-tech and biorenewables’ (York, North Yorkshire and East Riding LEP 2014).

Agri-tech is not an industry that has been clearly defined in the existing Standard Industrial Classification (SIC) system. Instead it is a broad sector that encompasses more than on-farm activities (although on-farm activities account for the greatest employment numbers within Agri-tech (BIS 2016)). Research and Development (R&D) and manufacturing and selling of technology are also significant.

This report therefore considers the agriculture subsector within the wider Agri-tech sector in the Transitional Area (TA) of East Riding.

In this report Beyond 2030 sets out the skills and productivity of the area and at Local Authority level to provide context, before considering the subsector in further detail.

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1.2 East Riding TA East Riding is in the wider region of Yorkshire and Humber. It borders North Yorkshire, South Yorkshire and Lincolnshire and covers over 900 square miles. The Humber Estuary and North Sea mark its southern and eastern limits. There are few large settlements, with Beverley, Bridlington and Goole being amongst the best known. Around half of the population live in rural communities.

The economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of East Riding. The area has many historic buildings, nature reserves and the Yorkshire Wolds Way long-distance footpath.

The open and maritime aspects and lack of major urban developments have led to the County being allocated relatively high targets for the generation of energy from renewable sources. Easington Gas Terminal, owned and operated by Centrica Storage, is one of only three main terminals that process gas from the UK Continental Shelf.

Goole is a significant dock area which serves as a significant employer in logistics and related sectors.

Bishop Burton is home to Bishop Burton College, a further education and higher education college specialising in agriculture and equine studies.

East Riding has a resident population of 337,700, which equates to 30% of the LEP’s total resident population (ONS 2017). Nearly 160,000 individuals are employed in the area. Employment rates stand at 76.2% (Table 1). The area has a growing and increasingly ageing population and deprivation is evident in some areas (East Riding Council 2016).

Using YNYER LEP as the standard, differences in the productivity, skills and employment across East Riding can be seen. Table 1 illustrates where the area performs better (green) or worse (red). For example, the job density is much lower in East Riding, as is the employment rate compared to the YNYER LEP area.

The economic inactivity rate is also much higher in East Riding (20.6%). While many of these are either retired, students, or looking after the home/family, it is worth noting that 24% (9,800) would like employment (ONS 2017).

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Table 1 Productivity, skills and jobs:

Measure East Riding

North Yorkshire

York YNYER LEP

England

Gross Weekly pay full time (£) (place of residence, 2016)

£498.30 £489.10 £509.60 £504.70 £544.70

Job density (the ratio of total jobs to population aged 16-64, 2015)

0.69 0.96 0.85 0.86 0.84

Employment Rate (Apr 16-Mar 17) 76.2% 80.7% 77.5% 78.8% 75.6%Self-Employment (Apr 16-Mar 17) 10.4% 13.9% 9.7% 12.0% 10.9%Full-time workers (employees) 66.1% 63.1% 62.7 63.8% 69.1%Unemployment Rate (Apr 16-Mar 17) 3.7% 2.9% 3.0% 3.2% 4.4%Economically Inactive (Apr 16-Mar 17)

20.6% 16.8% 20.0% 18.5% 20.9%

Level 4+ (Jan 2016-Dec 2016) 36.5% 35.9% 42.7% 37.5% 37.9%No Qualifications (Jan 2016-Dec 2016) 6.2% 6.5% 6.1% 6.3% 7.8%

Source: Office for National Statistics: LEP and National Labour Market Profiles; GVA for Local Enterprise Partnerships

2 Agriculture in Agri-tech, East Riding2.1 Introduction Agriculture accounts for over 70% of land use in the UK and has a major influence on our environment (Defra 2018). In East Riding this increases to 90% (East Riding County Council 2018) Without successful farm businesses and high-quality food production the UK would struggle to maintain the health of wider society and economy. Rural communities depend on profitable agricultural businesses to thrive, while landscapes, such as the Yorkshire Moors, which attract tourists, depend largely on farmers for their maintenance and upkeep. Restaurants, pubs, hotels and bed and breakfasts for which the area is famous, mostly use high quality, local, produce.

The LEP area has a diverse and robust agricultural base, with agriculture frequently recognised in local strategies. Specifically, in the East Riding Economic Strategy it is reported that the Council will adopt an integrated approached with the LEP, linking to their priorities including becoming ‘a global leader in food manufacturing, Agri-tech and biorenewables (East Riding Council 2016).

Agricultural production is recognised as an important sector to the East Riding economy in terms of business and employment numbers compared to national average (East Riding Council 2016). For example, East Riding contributes a quarter of the entire Yorkshire and Humber region’s agricultural GVA at £261m (ONS 2017).

Although at face value in economic terms the agricultural sector contributes a relatively modest 2-3% of the area's economy and employment, it provides the raw materials and the farmed landscape backdrop underpinning a number of key areas which strengthen the area's economic identity.

The YNYER LEP is home to a cluster of innovation and research facilities predominantly in and around the City of York, such as BioVale, Biorenewables Development Centre, the National Agri-Food Innovation Campus, Fera Science Ltd. and Stockbridge Technology Centre. This presents East Ridings’ rural community with growth opportunity and the potential to make a large contribution to the LEP’s priority. A challenge will be to mediate between the drive for greater productivity and the need environmental calls to maintain the wider ecosystem.

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2.1.1 Subsector definition The main economic data for the agricultural sector is collected by Defra who collate a comprehensive Local Authority breakdown for key crop areas and livestock numbers on agricultural holdings as well as employment data for the sector. Beyond 2030 has also analysed the Labour Force Survey to determined key workforce characteristics using the below Standard Industrial Classification (SIC) codes.

Table 2 Standard Occupation Classification

SIC Definition 01.1 Growing of non-perennial crops01.2 Growing of perennial crops01.3 Plant propagation01.4 Animal production01.5 Mixed farming01.6 Support activities to agriculture and post-harvest crop activities01.7 Hunting, trapping and related service activities

Source (ONS 2009)

2.2 Agriculture economy and employment The East Riding area had 1,931 agricultural holdings in 2016 (Defra 2018). This equated to nearly 2% of all holdings in England. In total 201,495 hectares were farmed. The area farmed decreased by 1% since 2013. Looking specifically at land use in the East Riding area (Table 3):

54% was cereal. 19% was arable crops. 14% was grassland. 4% was dedicated to fruit and vegetables.

Land use in East Riding differs from the York and North Yorkshire area. In York and North Yorkshire grassland is the dominate use of land, accounting for 58% of the farmed area and just 26% for cereal (Defra 2018).

Table 3 Key crop areas on agricultural holdings, East Riding, 2013 and 2016

East Riding England

2013 2016 % Change 2013 2016 %

ChangeNumber of holdings 1,931 106,853Total farmed area (hectares):

204,191 201,495 -1.3% 9,086,480 9,120,623 0.4%

Cereals 106,617 109,633 -2.8% 2,492,296 2,616,937 5.0%Arable crops (excl. cereals) 43,178 39,184 -9.3% 1,327,988 1,239,581 -6.7%Fruit and vegetables 8,151 8,672 6.4% 128,094 124,913 -2.5%Grassland 30,397 28,871 -5.0% 4,412,969 4,387,975 -0.6%

Source (Defra 2018)

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In terms of livestock, pigs and poultry are key industries in the area. 13% of pigs in England are located here and poultry accounts for 2% (Table 4Error: Reference source not found). Poultry production has increased 16% between 2013 to 2016 in the area, which is greater than national rate of 7%.

Table 4 Livestock numbers, East Riding, 2013 and 2016

East Riding England2013 2016 % change 2013 2016 % change

Cattle 51,368 50,132 -5.0% 5,344,652 5,252,828 -1.7%Sheep 83,405 80,837 -3.1% 14,921,639 15,282,934 2.4%Pigs 520,447 489,987 -5.8% 4,065,928 3,911,082 -3.8%Poultry

2,561,472 2,978,839 16.3% 120,504,242 128,879,491

7.0%

Source (Defra 2018)

Agricultural farms in the area include:

Asselby Chucks http://asselbychucks.webs.com/ East Riding Country Pork http://www.eastridingcountrypork.co.uk/ Market Place Farm http://www.marketplacefarm.co.uk/ Rosewood Farm http://rosewood.farm/ Soanes Poultry http://soanespoultry.co.uk/ K Fresh Ltd http:// www .kfresh.co.uk/ East Yorkshire Hemp http://eastyorkshirehemp.co.uk/ JSR Farms http://www.jsr.co.uk/ Elliots Eggs http://www.elliotteggs.co.uk/ Sorrelcourtpoultry Bishop Burton College which has an 894-acre farm, wholly managed by the college.

2.2.1 Jobs people do Employment in agriculture in East Riding stood at 5,965 in 2016, an increase of 0.7% since 2013 (Defra 2018).

54% of the total labour on farms is accounted for by the farmers themselves and those with whom they have an immediate family or business relationship (). This highlights the importance of family ties in the sector. A further 33% are workers under regular employment by those farmers and 13% are casual (non-regular) workers.

56% of the workers are full time, 32% part-time and 13% casual labour (Defra 2018).

Of note is the increase in the use of causal labour. Between 2013 and 2016 the number of casual workers increased by 16% across East Riding, greater than the England average of 12%. With the well published shortage of causal labour in the industry (FarmingUK 2018) (NFU 2017), recruiting casual labour is a concern for farmers and was often highlighted as a challenge by employers during the research.

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http://www.elliotteggs.co.uk/

http://www.jsr.co.uk/

http://eastyorkshirehemp.co.uk/

http://www.kfresh.co.uk/

http://soanespoultry.co.uk/

http://rosewood.farm/

http://www.marketplacefarm.co.uk/

http://www.eastridingcountrypork.co.uk/

http://asselbychucks.webs.com/


Table 5 Number of workers in the agricultural sector, 20162013 2016 % change

Total number of workers in agriculture sector 5,924

5,965 0.7%

Farmers, partners, directors and spouses full time 1,846 1,848 0.1%Farmers, partners, directors and spouses part time 1,367 1,362 -0.3%Salaried managers 250 264 5.7%Regular workers full time 1,271 1,200 -5.5%Regular workers part time 530 522 -1.6%Casual workers 661 769 16.4%

Source (Defra 2018)

Jobs in the agriculture subsector are concentrated in two occupational groups:

• Skilled trade occupations – which includes farmers, horticultural trades, agricultural contractor, herd manager, agricultural technician, game keeper.

• Elementary occupations – which includes farm workers, shepherds, herdsman, pickers.

Consequently, these two groups represent a greater proportion when compared to the all economy data for Yorkshire and Humber.

Table 6 Occupational groupsAgriculture (Y&H)

Agriculture (UK)

All economy (Y&H)

Managers, Directors and Senior Officials 16% 12% 10%Professional Occupations 7% 2% 19%Associate Professional and Technical Occupations * 2% 13%Administrative and Secretarial Occupations * 5% 10%Skilled Trades Occupations 48% 44% 11%Personal care services * 2% 10%Sales and Customer Service Occupations * 2% 8%Process, Plant and Machine Operatives 3% 7% 8%Elementary Occupations 21% 24% 11%

Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017)

The job roles which have the greatest number employed in the agriculture subsector across the Yorkshire and Humber are shown below. These top 5 roles account for 80% of the subsector workforce (Table 7).

Table 7 Top five jobs roles in agriculture subsector, Y&H

Rank

Occupation Number employed

1 5111 'Farmers' 8,0002 1211 'Managers and proprietors in agriculture and horticulture' 2,6003 9111 'Farm workers' 2,5004 2112 'Biological scientists and biochemists' 1,5005 6139 'Animal care services occupations n.e.c.'* 900

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Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017) * not elsewhere classified

Young people are underrepresented in agriculture compared to the whole economy. Only 9% are aged under 25 and 28% are over the age of 55 in the subsector. This compares to 13% and 18% respectively in the whole economy.

With an ageing workforce and small numbers of young people entering the subsector, there are set to be significant challenges in future recruitment. Young people face a number of barriers to entry. Some specifically relate to farming, such as the increasing cost of capital required for machinery through to associated costs of farm land and rural housing. In addition, access to land is a significant challenge with issues around the availability of farming tenancies and contract farming (Natwest 2017). Inheritance continues to be the primary entry route into the sector for young farmers, but this also has potential barriers as a result of estate planning and taxation following the death of a parent (Natwest 2017).

Figure 1 Age profile of agriculture subsector

Under 25 25 to 34 35 to 44 45 to 54 55 to 64 65+0%

5%

10%

15%

20%

25%

30%

35%

40%

Y&H Agriculture Y&H All economy

Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017) * not elsewhere classified

2.3 Skill needs - Primary research and testing the data2.3.1 Recruitment Recruitment opportunities are clear in the subsector. The majority of firms Beyond 2030 spoke with had recruited in the previous 12 months or were planning to in the coming months. These were mainly for production or manual labour positions. Secondary research revealed further opportunities, for example, there have been recent vacancies advertised:

A frozen food company based in East Riding were seeking a UK Agriculture Manager. This primarily involved managing a large pea production operation from seed to factory including choosing pea varieties, scheduling the drilling and developing/managing harvest strategy.

G & J Evison & Son required a full time General Farm Manager for an arable farm. Beverley Pasture Masters required a Pasture Control and Stockman to be responsible for

600-acres of common pasture land. Yorkshire Dairy Goats were seeking an Assistant Manager.

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Agricultural firms will also use specialist recruitment agencies to advertise positions. Roadhogs, a recruitment agency for the Pig Industry, for example, were recruiting an Assistant Indoor Pig Manager position in East Yorkshire on behalf of their client. The pig industry is hugely important in the area, with 13% of all pig in England farmed across East Riding. Roadhogs have a large database of potential applicants to help match the right people to the right job (Roadhogs 2018).

The Society of Dairy Technology reported that recruitment was a ‘big challenge as there are not many people that want to train in this area after school’.

When firms where asked about challenges and threats facing the organisation and sector, feedback frequently mentioned recruitment and skills. The Association of Labour Providers reported that recruitment agencies cannot secure the number of workers needed by British farmers to pick their fruit and vegetables (Marshall 2018).

2.3.2 What are the current skill needs and gaps2.3.2.1 Skills levelsA third of the subsector workforce is qualified to Level 4 or above, which is slightly lower than the whole economy figure of 38%. A greater proportion of people working in agriculture have no formal qualifications than the whole economy. 13% of the subsector workforce does not have any qualifications and a further 17% hold ‘other qualifications’.

Despite the lack of formal qualifications, the sector is widely considered to be a skilled one (Lantra 2012). One of the reasons for the mismatch between qualifications and skills is the lack of formal entry requirements. A report by the UKCES found that only four per cent of agricultural jobs are subject to some form of entry-related occupational regulation such as licensing, certification, registration or accreditation (UKCES 2011).

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Bishop Burton College In February/March 2018 the college were recruiting for several positions including:• Livestock worker (pigs).• Curriculum leader in animal management.


Figure 2 Qualifications levels of the agriculture subsector

NQF Leve

l 4 and above

NQF Leve

l 3

Trade apprenticesh

ips

NQF Leve

l 2

Below NQF Le

vel 2

Other qualifi

cations

No qualifica

tions0%5%

10%15%20%25%30%35%40%

Y&H Agriculture Y&H All economy

Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017)

2.3.3 Skills needs / gaps Agricultural holdings are increasingly adopting new technologies. Companies with production facilities are investing in technologies to improve the operation lines, while general IT and specialist computer programmes to help manage agricultural production are also being utilised. Consequently, this is a new area of skills development in the subsector.

From our primary work Beyond 2030 suggests that the following occupations and skills are particularly needed and valued by employers

Agriculture qualification and/or stockman experience. Experience / knowledge of modern animal agriculture. Certificates – i.e. forklift, sprayer. Flexible approach to working hours – weekends, early mornings and long hours particularly

during harvest. Driving / trailer / tractor licence. Management skills and business development. Using the latest technologies in machine design/robotics, utilising GPS and drones.

It is worth noting that this is a sector really looking for skills more than qualifications. When we talked to stakeholders and employers this was particularly noticeable.

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Lantra reported that specific skills challenges faced by the sector included the need for higher level and professional skills whilst adapting to meet changing consumer demands whilst managing environmental pressures. Furthermore, where technical skills are required it is important to refresh and update employees regularly.


2.3.4 Training Due to its physical nature, farm work can be demanding, and special care must be taken to ensure the health and safety of all workers. Therefore, considerable training is reported by employers in this area, along with ensuring compliance with legislation (i.e. certificates for spraying).

For roles that require technical skills in the sector, Lantra reiterated the importance of refreshing and updating these skills regularly. In agricultural production there are frequent changes to regulations, including animal health and welfare, Common Agriculture Policy (CAP) and agronomy that farmers need to be aware of and react to as necessary.

Agricultural firms, particularly small firms, expect workers to pick up many of the necessary skills on-the-job. Unless the role requires a specific certificate for the operation of equipment, then many do not see the need for outside trainers to deliver formal training. For example, seasonal workers will be given induction training to cover health and safety and fire regulations but there is an emphasis on picking up the skills whilst employed rather than being formally trained in a classroom environment.

Cost and time were the main drag factors on engaging non- mandatory training. In a robustly regulated sector, non-mandatory training is often seen in second place in terms of employer imperative.

2.4 Apprenticeships in agricultureIn total 7,300 individuals started an Agriculture, Horticulture and Animal Care apprenticeship in 2016/17. Just 80 (1%) were in East Riding. This is an extremely low number given that it is such an important subsector in the area.

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Bishop Burton College

The college is one of the UK’s leading land-based colleges. Located just outside Beverley, it is home to a 890 acre mixed farm, which includes a Freedom Food-assured high-welfare pig unit, dairy parlour, beef unit and sheep facilities.

They have a range of agricultural courses at various levels which all include practical duties and work experience. Students use the latest technologies, including tractor and combine simulators and drones to evaluate crop growth management. Therefore, students have the skills required to go straight into industry.

The college is also home to the Centre for Agriculture Innovation. In partnership with NFU, the centre aims to offer solutions to some of the challenges facing agriculture through a combination of land-based research, practical experience and its engagement with industry partners.

(Bishop Burton College 2018).


Table 8 Apprenticeship starts in East Riding

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

Agriculture, Horticulture and Animal Care

50 50 50 60 80 80

Arts, Media and Publishing - 10 10 10 10 10 Business, Administration and Law 1,040 900 700 790 890 890 Construction, Planning and the Built Environment

100 70 100 150 130 140

Education and Training 40 30 10 50 40 50 Engineering and Manufacturing Technologies

820 550 580 660 630 650

Health, Public Services and Care 730 780 660 830 750 790 Information and Communication Technology

650 380 280 170 160 200

Languages, Literature and Culture - - - - - -Leisure, Travel and Tourism 120 100 70 120 130 140 Preparation for Life and Work - - - - - -Retail and Commercial Enterprise 2,470 2,140 2,380 2,540 2,240 2,440 Science and Mathematics - - - - - 0 Unknown - - - - - -All 6,040 5,010 4,830 5,360 5,070 5,390

Source (DfE, et al., 2017)

The sector has a few apprenticeship standards on offer or in development (Institute for Apprenticeships 2017), including:

Horticulture and Landscape Operative, Level 2. Land-based service engineer, Level 2. Land-based service engineering technician, Level 3. Animal care and welfare assistant, Level 2. Crop technician, Level 2. Poultry technician, Level 3. Poultry worker, Level 2. Stockperson (beef, pigs, sheep, dairy), Level 2.

However, as Lantra reported, micro businesses are unlikely to be able to offer the range of experiences an apprentice would need to complete a useful and fully rounded apprenticeship. In addition, it was reported that ‘the danger of some new apprenticeships is that a small group of employers (10) are able to design them and they will only meet their needs and therefore be of lower volumes. There should be a set of transferable skills which are recognisable by any employer in that industry’.

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2.5 Future requirements2.5.1 Future workforce in the agriculture sector in Yorkshire and HumberFuture workforce projections for the sector are available at the wider regional level of Yorkshire and Humber rather than the LEP area but this still provides a useful indication of changes in the workforce moving forward.

2.5.1.1 Sector Growth

Employment in the Yorkshire and Humber agriculture sector is expected to decrease by 21.1% between 2014 and 2024 which equates to 7,000 jobs. This rate of decrease is slightly less than the national sector average of 24%. It is also in contrast to the Yorkshire and Humber trend, where growth of 3.9% is anticipated across all industries.

Figure 3 Employment by gender and status in agriculture sector, 2024, Yorkshire and Humber

With an anticipated workforce of 27,000 in 2024, 38% of the workers will be full-time in the sector – much less than the region all economy figure, where 57% are anticipated to be full time.

44% are anticipated to be self-employed (Figure 3).

Source: UKCES Working Futures VI

We expect to see employment growth across just two occupational groups namely professional occupations and associate professional and technical roles. All other occupational groups will see decreases in employment numbers, particularly skilled trades occupations (Figure 4).

Figure 4 Occupation change in agriculture sector, 2014 -2024 (000s) Yorkshire and Humber

Elementary Occupations

Transport and Machine Operatives

Sales and Customer Service Occupations

Personal Service Occupations

Skilled Trades Occupations

Administrative, Clerical and Secretarial Occupations

Associate Professional and Technical Occupations

Professional Occupations

Managers and Senior Officials

-5 -4 -3 -2 -1 0 1


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21%

17%

7%11%

34%

9% Male FT

Female FT

Male PT

Female PT

Male Self-employed

Female Sef-employed


2.5.1.2 Replacement need and total demand

The above occupational change data is a useful indicator of changing patterns of demand for skills. However, it also important to consider the replacement demands – the job openings created by the outflow of workers from the labour market.

Despite large anticipated declines in employment, the agriculture sector across Yorkshire and Humber is still expected to have job openings between 2014 and 2024. Replacement demand of 14,000 means that overall there will be 7,000 job openings. 62% of all job openings will be skilled trade occupations and 21% in professional occupations.

Figure 5 Job openings in agriculture sector by occupation 2014 - 2024 (000s) Yorkshire and Humber

Man

ager

s and

Sen

ior O

fficia

ls

Prof

essio

nal O

ccup

ation

s

Asso

ciate

Pro

fess

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l and

Tec

hnica

l O

ccup

ation

s

Adm

inist

rativ

e, C

leric

al a

nd S

ecre

tar

-ia

l Occ

upati

ons

Skill

ed T

rade

s Occ

upati

ons

Pers

onal

Ser

vice

Occ

upati

ons

Sale

s and

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10Expansion demand Replacement demand Job openings


2.5.1.3 Qualifications

The latest Working Futures projections also consider the qualification levels of the workforce. It shows that there will be a shift towards more people holding higher qualifications in the sector.

By 2024, 47% of people employed in agriculture across Yorkshire and Humber are expected to be qualified at level 4 and above, whilst the proportion of people with no formal qualifications or level 1 is expected to fall to 17%.

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Table 9 Change in qualification profile of the agriculture sector, Yorkshire and Humber

No qualifications and level 1 Level 2 Level 3 Level 4 – 6 Level 7 – 8

Qualification example

GSCE (grades D – G)BTEC level 1

GCSE (grades A* - C) NVQ Level 2

AS & A level BTEC National

Certificate of higher education (L4)Foundation degree (L5)Bachelors degree (L6)

Masters degree (L7)Doctorate (L8)

2014 level 2024 level

10,6544,635

7,6415,242

6,3284,357

8,37411,213

1,0341,414

2014 – 2024 % change -56% -31% -31% 34% 37%

2014 % share 31% 22% 19% 25% 3%2024 % share 17% 20% 16% 42% 5%


2.5.2 Future roles and skillsAgricultural technologies are transforming farming and are creating new types of jobs and requirements for new kinds of skills. New robotic and automated technologies, from precision irrigation to drones, will affect the sector.

Some new technologies may result in job losses, or potentially lessen the need for seasonal workers during harvest (FarminUK 2018), but there will always be jobs for people associated with agriculture. Instead of being in the cab of a tractor, the role could become managing and maintaining the robots.

It is vital that the agricultural and horticultural sector can plan ahead and secure the appropriately skilled people that it needs.

Looking forward, tomorrow’s farm managers, be it those within agricultural companies or those on family farms, will need to know the cost of production, be able to sell, market produce and be able to motivate others to work as part of a team. But not just that, the sector needs to attract the engineering, manufacturing, research and other STEM skills necessary for an increasingly sophisticated food and farming industry.

2.6 Drivers2.6.1 Political Future of farming

At the 2018 NFU conference, the Environment Secretary Michael Gove reported that farming is more central to government thinking than at any other time over the last 50 years (Defra 2018), going on to report that policies which help farmers and food producers develop resilience are needed.

The Government published a Consultation Paper on the future of agricultural policy in England in February 2018 (Defra 2018).

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Brexit

Leaving the EU will mean reforming the current system of subsidy for farming and food production. However, UK farmers will continue to receive support through the Basic Payment Scheme and Rural Development Funding until the UK formally leaves the EU and payments will then be matched by the UK government until 2020 (Defra, DAERA NI, et al. 2017).

The uncertainty of Brexit is a concern repeatedly expressed to us during our primary research.

Seasonal Agricultural Workers Scheme (SAWS)

This scheme operated from 1948 to 2013, allowing migrant farm workers into the UK for a period of up to six months. It was closed as demand for workers could be met from the EU under freedom of movement. However, concerns regarding Brexit and labour supply from the EU means that the Home Affairs Committee has called on the government to create a new Seasonal Agricultural Workers Scheme as farmers report the need for more low skilled workers to meet seasonal labour demand (FarmingUK 2018).

Countryside Productivity Scheme

The Rural Development Programme for England (RDPE) Countryside Productivity Scheme provides funding for projects in England which improve productivity in the farming and forestry sectors and help create jobs and growth in the rural economy (Defra, RPA and RDPE 2018). Under the scheme there are grants which are funded by the European Agricultural Fund for Rural Development (EAFRD). These grants invest in:

Water resource management and reservoirs. Improving forestry productivity. Adding value to Agri-food. Improving farm productivity.

These grants are guaranteed if they are agreed and signed before the UK’s departure from the EU, even if the grant agreements continue after we have left the EU.

The Agri-food grants are for processors of primary agricultural or horticultural products. This includes food and drink businesses and farmers (including livestock, dairy, arable and horticultural sectors) in rural or urban areas.

These grants are to improve the processing of primary agricultural products to shorten supply chains and deliver benefits to primary producers. Grant funding can help pay for equipment and machinery, construction or improving buildings associated with all aspects of processing.

The minimum grant that can be applied for is £35,000.

Countryside Productivity Small Grant scheme

In addition to the above, the Farming Minister, George Eustice has announced a new £60m productivity grants scheme (NFU 2018). Open from February 2018 to 14th March 2018 farmers could apply for a grant between £3,000 and £12,000 towards the costs of farm equipment. Eligible items include mobile and fixed cattle handling systems, cattle auto ID shedding gate, EID hand-held devices, GPS for precision farming, yield mapping, variable rate controller for sprayers and fertiliser spreaders (Defra, RPA and RDPE 2018).

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Gangmaster

The sector has a large reliance on seasonal workers meaning those people who work for an organisation on a short-term basis, in jobs that are seasonal. Seasonal workers might be directly recruited by the employer, recruited through an employment agency, a labour provider (agencies who recruit in other EU countries) or through a gangmaster, someone who runs a team or ‘gang’ of workers.

Gangmasters are legal employment arrangements, so long as pay and conditions match the regulations of the Gangmaster and Labour Abuse Authority (GLAA). Seasonal workers can be of any nationality, they are not necessarily migrants.

Gangmasters must be licensed if they provide workers for:

Agriculture. Horticulture. Dairy farming. Food and drink processing or packaging. Forestry. Gathering shellfish.

With farmers struggling to meet labour requirements there are warnings against using unlicensed gangmasters from the GLAA (Midgley 2017). Licences can be checked on the GLAA Public Registers (GLAA 2018).

2.6.2 Economic Labour availability

The recruitment of seasonal workers poses many challenges. In today’s labour market, low unemployment levels mean smaller pools of available labour. This means that there is more competition to recruit between organisations across all sectors.

The fall in the value of sterling since the Brexit vote and high levels of employment in countries such as Romania and Bulgaria mean the UK has become less attractive to seasonal workers from the EU.

Cost

Improving productivity with technology requires significant up-front costs, which can be a barrier to many in the industry. The NFU have called for the government to support such investment with grants, tax allowances or cheap loans (Pollock 2013).

2.6.3 Social Sector Perception

With a widely perceived public image problem and a labour force that is currently dominated by men over 55 years of age, attracting people to the sector could be a challenge.

By raising awareness of agriculture as an exciting and attractive career path, people will understand the opportunities available to them in the farming and land management industry.

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Various initiatives on the ground across the UK are providing opportunities for enthusiastic starters to access farmland and learn agricultural skills.

For example, the Progressive Young Farmer programme by McDonalds gives young people the opportunity of a 12-month placement tracing their supply chain. Mentored by a farmer, individuals can gain experience in areas such as beef, pork, potatoes, dairy and poultry farming – as well as an understanding of the whole agricultural supply chain. They will help develop the broad range of knowledge needed to succeed in today’s farming sector, including business skills and technological know-how (McDonalds 2018).

2.6.4 TechnologicalAccess to R&D and technologies

Farmers being able to access the research and development that can ensure productive and profitable farming is key. However, the availability of even simple, basic technology such as the internet is holding some farmers back. 13% of farmers don't have reliable access to the internet and 60% of those with a connection only have speeds of 2Mbps. This is insufficient to deal with the data that is expected to be generated by drones and sensors (nesta 2015). Focus therefore needs to be given to the rural infrastructure.

At the recent NUF conference the Business Secretary Greg Clark announced a £90 million fund for Agri-tech (NFU 2018). The funding is designed to help food and farming businesses to access and use innovative technology, such as AI and robotics.

Organisations such as Crop Health and Protection (CHAP), Centre of Innovation Excellence in Livestock (CIEL) and the National Farmers Union (NFU) will be key to helping to promote knowledge of new innovations.

Artificial Intelligence and robots

The agricultural sector hasn’t been indifferent to the rise of Artificial Intelligence (AI) and robotics. In September 2017, John Deere signed an agreement to acquire Blue River Technology, which is a leader in applying machine learning to agriculture (John Deere 2017).

Robotics and other technology could help farmers reduced their reliance on labour.

Sensors

Investment in sensors to gather information about crops, such as water needs, soil temperature, humidity is set to continue to rise. Estimates expect the global soil moisture sensor market to grow from US$99.3 million in 2016 to US$288.3million by 2025 at a compound annual growth rate (CAGR) of 12.68% between 2017 and 2025 (The Insight Partners 2017).

Internet of Things

The Internet of Things (IoT) – the network connectivity between devices and objects which allows them to manage and exchange data amongst one another with minimum human intervention – will become more prevalent.

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2.6.5 Environmental The Government’s ’25 Year Environment Plan’ (HM Government 2018) has heightened the need for smart technology to be deployed on farms. Ambitions to reduce industrial emissions, manage exposure to chemicals and ensure food is produced sustainably and profitably, means that agriculture needs to capitalise on existing and emerging technologies to meet these challenges. In the future, precision farming technologies will be key.

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