The results of a new survey shows farmers are looking to the future with optimism and planning for growth!
This good news is contained in the The Agricultural Insight Survey conducted by MHA - a UK wide group of accountants, including Larking Gowen in the East. It takes into account the views of over 200 farmers surveyed at agricultural shows in Peterborough and Cambridge.
Among the key findings were:
1. Optimism is high, 69 per cent were expecting growth
2. 51 per cent were planning to increase their acreage
3. Succession planning is becoming more of a concern
Commented David Missen, Larking Gowen's agricultural partner; "The optimism the survey shows is slightly at odds with the recent falls in cereals prices. The key figure for farmers is price x yield and we would hope the yield for the 2014 harvest will be exceptionally good.
"I am sure farmers like the satisfaction of growing a very high quality and plentiful crop, and that may cover some of the disappointment if the price they receive per ton is lower than they would have hoped.
"It is also encouraging to see over half our respondents are looking to expand, however the availability of the right land at the right price is likely to be a barrier as little land is actually coming onto the market."
The Survey showed over half of the respondents were worried about the future of their business expressing concern about succession planning.
Said David Missen; "In farming more than just about any other business you need to take a long term view and this includes handing it on to the next generation.
"Planning for this as far ahead as possible is important and professional advice is essential to do this in the most practical and tax efficient way possible. Pleasingly the survey said 54 percent would make their accountant their first point of call when making important decisions about their business."
Larking Gowen is registered to carry out audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. A member of MHA.