ANNUAL REPORT FLIPPING BOOK.pdf

“Over 60%of farmers we talked to have either already changed their farming patterns or are currently considering doing so. This adaptability is the key to ensuring a business can survive”.

$QRWKHU NH\ LQÁXHQFH RQ WKH IDUPLQJ VHFWRU is the weather and neither individual farmers QRU WKH 8. LQGXVWU\ DV D ZKROH FDQ KDYH DQ\ control of it. What farmers can do is adapt and change to climate patterns which could include livestock management systems, changes in cropping, or complete rotations. $ TXHVWLRQQDLUH FRPSOHWHG WKURXJKRXW WKH VXPPHU E\ %DUFOD\V $JULFXOWXUH DW LQGXVWU\ shows and events has shown that over 60% of farmers we talked to have either already changed their farming patterns or DUH FXUUHQWO\ FRQVLGHULQJ GRLQJ VR 7KLV adaptability is the key to ensuring a business can survive when something not within its control changes, be that as an instant reaction to the direct results of the weather, VXFK DV ÁRRGLQJ RU ZKHQ WDNLQJ D ORQJ WHUP strategic view of overall business operation ZKHQ WKH ÁRRGLQJ FRQWLQXHV \HDU DIWHU \HDU 7KH KLVWRULFDOO\ ORZ EDVH UDWH LV UHSRUWHG WR EHQHÀW 8. ERUURZHUV DW SUHVHQW DQG WKH IDUPLQJ LQGXVWU\ LV QR GLIIHUHQW ZLWK total facilities to the industry in the Bank of (QJODQG ÀJXUHV UHDFKLQJ RYHU…ELOOLRQ :LWK WKH FRVW RI ERUURZLQJ DW DQ DOO WLPH ORZ many farmers have taken the opportunity to UHOHDVH VRPH HTXLW\ IURP WKHLU DVVHW EDVH and invest in the infrastructure or size of their IDUP $V WKH JHQHUDO 8. HFRQRP\ JURZV DQG VWUHQJWKHQV IRUHFDVWV DUH HYHU FKDQJLQJ RQ

when the base rate will begin to increase. However, managing the potential for an increase in base rate, and therefore overall interest payments, and knowing how that will affect your business is one of the key calculations to ensure the level of borrowing LV VXVWDLQDEOH 7KLV DQDO\VLV VKRXOG EH XQGHUWDNHQ LQ MXVW WKH VDPH ZD\ \RX PLJKW apply a sensitivity analysis to milk or grain price variations, when you have little control RYHU VRPHWKLQJ LW LV SUXGHQW WR NQRZ KRZ ÁXFWXDWLRQV ZLOO DIIHFW \RXU EXVLQHVV DQG \RXU FDVKÁRZ 2YHUDOO 8. DJULFXOWXUH LV D YLEUDQW DQG FXWWLQJ HGJH LQGXVWU\ VRPH RI WKH LQQRYDWLRQ LQ WKH world of farming in recent years is a far cry from the perception of those with a more traditional view of our industry. Many believe LW LV D VWHDG\ VORZ EXUQLQJ VHFWRU ZKLFK LQ production cycle terms it can be. However, URERWLF PLONLQJ ÀHOG PDSSLQJ WR GHWHUPLQH seed, spray and fertiliser rates and electronic climate control of pig and poultry buildings, to name but a few, are an indication of the innovation and technology the industry LV HPEUDFLQJ *UHDWHU DZDUHQHVV RI WKH constant modernisation of the industry will not only drive investment within the farming community, but also help to attract the farmers and innovators of tomorrow.

8. $JULFXOWXUH cannot ignore the environmental impact on its fortunes, having to respond to both environmental SROLFLHV IURP WKH (8 and more localised, SURÀW LQÁXHQFLQJ

weather patterns. Resilient as ever, the sector adapts to accommodate all of this.

,UUHVSHFWLYH RI DQ\ FOLPDWH RI HQYLURQPHQWDO issues, agricultural businesses must be assured that they are fully funded in order WR RSHUDWH HIÀFLHQWO\ DQG DW WKH VDPH time be sure of the affordability of this IXQGLQJ UHTXLUHPHQW 7KLV DOO FRPHV DV D FRQVHTXHQFH RI PRQLWRULQJ DQG EXGJHWLQJ ÀQDQFLDO UHTXLUHPHQWV DQG WKH FRVWV thereof, both at the current time and into the future.

Philip Dunn Partner 01652 654833 philip.dunn@brown-co.com

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