Finding Lambhill’s MSO

Be The Change Farm news, with Henry Russell

What does it mean to get the most from a farm without asking more of the land than it can sustainably provide?

That was the question behind a recent Maximum Sustainable Output (MSO) analysis at Lambhill Farm.

MSO is about finding the farm’s sweet spot: the point where the business can produce as much as possible from the resources the farm itself provides, while reducing the need for bought-in inputs such as feed, fertiliser, seed and pesticides.

For a hill farm like Lambhill, that means looking beyond simply asking “How many animals can we keep?” and instead considering what combination of livestock makes the best use of the land, while creating a more resilient farm business.

Finding the sweet spot

The analysis, carried out by Nethergill, looks at the relationship between the farm's output, income and costs.

Some of the resources that support production are effectively provided by nature - sunlight, rainfall and soil, for example. These are described in the analysis as Productive Variable Costs (PVCs). As output increases, these costs change very little because the farm is making use of resources that are already there.

Then there are Corrective Variable Costs (CVCs) - inputs bought in to substitute for or correct what the natural system isn't providing. These can include things such as purchased feed and fertiliser, and their costs rise much more quickly as production increases.

The MSO point sits where the farm can maximise profitability from what its land can provide naturally, without becoming increasingly dependent on these corrective inputs.

A different picture for Lambhill

Nethergill usually finds that livestock farms are overstocked - operating beyond their MSO point and relying on bought-in feed, fertiliser, seed or pesticides to maintain production.

The analysis found that the farm was actually understocked. There was capacity to produce more from the land, but the farm still had some reliance on bought-in inputs

Rather than simply reducing livestock numbers, the report suggests increasing stocking levels towards Lambhill's MSO point - but changing the balance of livestock to make better use of what the farm can provide.

More cattle, fewer sheep

At the moment, Lambhill's livestock mix is weighted towards sheep: around 19:81 cattle to sheep in terms of livestock units. The recommendation was to move towards 60:40 cattle to sheep.

In practical terms, that's roughly a shift from one heifer for every 32 ewes to around one heifer for every five ewes. It's a significant change, but it's about finding the right animals for the system, rather than simply having more animals.

The aim is to increase output while making better use of the farm's natural resources and reducing the need to prop up production with purchased inputs.

Building resilience into the business

Perhaps one of the most useful findings is what this could mean for Lambhill's financial resilience. Nethergill's analysis suggests that moving towards the MSO point could bring the farm close to breaking even without support income such as agri-environment payments.

That doesn't mean support schemes aren't important. They can play a vital role in helping farms deliver environmental benefits and manage land in ways that support nature.

But having a farm business that is less dependent on those payments gives Lambhill more options in the future.

It's about understanding the limits of the system, working with the land rather than against it, and finding the point where productivity, profitability and the natural resources of the farm work together.

However, what the recommendations can overlook are the nuances of each individual farm. For Lambhill, for example, it’s essential to take into account restrictions from the landlord - in this case United Utilities' stipulations about grazing, stock numbers, water quality, fencing etc. Also, the nature of the land - what can rushy pastures, wet moorland, heavy bracken, and steep valleys realistically cope with and sustain.  

For Lambhill, that means asking some big questions about what the farm could look like in the future and using the numbers to help shape those decisions.