It's now time to take stock
Now that most farms have received their single payment - at least in part - it is time to take stock. The apparent freedom of decoupled production must be set against the reality that for reasons of soil type, aspect, machinery, buildings and skills, many farms cannot simply change direction.
"With the uncertainty of delayed payments and political meddling into modulation rates, no-one can afford to ignore returns from agricultural production," said Simon Latter, farm business consultant with Berrys at Shrewsbury.
Having spent 12 years surveying farm incomes for the University of Manchester, Simon has seen how farm profitability can vary.
"It takes a very special person to intuitively know how their business is performing, the rest us of have to rely on farm costings and accounts!"
The problem with this approach is that all too often the only measure of performance is last year's results.
"If profit wasn't enough last year, then will a 10 per cent increase this year be considered a success or under-achievement?
"The only true way to understand how your management rates is to benchmark your results," said Simon.
Comparison with other farms of a similar type and across farm type can, if carefully analysed, provide the basis on which other decisions can be made.
This process need not be expensive or challenge rocket science for complexity but it is a basic tool for business survival and improvement.
"Whole farm and enterprise benchmarking puts you in control; the key is to keep your buyers guessing not yourself," added Simon.
Berrys offers a comprehensive benchmarking service. For details telephone 01743 271697 or email simon.latter@berrybros.com
