Farm Business Advice
Having recently just joined H&H Land & Estates as a Farm Business and Environment Advisor, I want to show the importance of providing support to farmers everywhere in managing their businesses whilst taking into consideration the massive changes in the industry in recent years and the challenges that have followed.
The market volatility which the agricultural industry has experienced over the recent couple of years has been at an almost unprecedented level. January 2023 saw agricultural inflation at almost 19% showing how rapidly farm costs have been increasing. This, coupled with the uncertainty over the prices farmers may receive for their produce going forwards, makes for a challenging marketplace. One of the main reasons for this volatility is due to the sector’s exposure to external factors. Factors which are beyond the control of our farmers – the weather, governmental trade deals and global political unrest being just a few.
Budgeting and Performance Monitoring
For many businesses, questions are starting to be asked on what this means for them at farm-gate level, and how the potential impacts of market volatility can be mitigated. As a farm business advisor, I regularly carry out budgeting activities for clients, enabling performance to be monitored and steps put in place accordingly. The level at which this occurs is completely dependant on the individual farming business and what they want to get out of it, ranging from basic gross margin analysis to more in-depth risk management strategies and whole farm budgets.
Farm Appraisals and Business Planning
Another business management tool we offer are farm appraisals. Initially, this involves assessing the current business performance through benchmarking and financial analysis, which gives a good indication towards what the business is best at, and areas where performance may not be so good. These findings are then linked with the future opportunities, and recommendations given to how the business ma y adapt and change to improve. We can also put together a business plan based on these findings for a new project/business venture you maybe wishing to undertake.
For more advice on this sector, please get in touch via my email [email protected]