25 April 2015 | Online since 2003



23 July 2014|Arable,Cereal,Crops,News

Farmers 'optimistic for future growth' despite falling prices


The second in a series of agricultural surveys conducted this year reveal that the majority of farmers are optimistic about future growth and are planning for expansion where possible.

The MHA Agriculture Insight Survey was first conducted at LAMMA in January and re-run at Cereals 2014 in June. Collectively these surveys take into account the views of more than 200 farmers nationwide.

Key findings include:


Despite falling prices, optimism for growth is high – 69% of those who responded were expecting growth.
Expansion is an aspiration for many with 51% planning to increase their acreage.
Succession planning is a concern which is moving up the agenda for many respondents.



EU predictions earlier this month, that the European cereal harvest is set to beat the average for the second year running, may be part of the reason for the optimism amongst those surveyed, outweighing the impact of recent drops in commodity prices. However, many sounded a note of caution around profitability as the squeeze on margins continues to bite. There is also a shortage of available land for those looking to expand their businesses.

David Missen, head of the MHA Agriculture Group commented: “Although the recent falls in the price of both cereals and meat was a key topic of conversation, it is encouraging that there is an underlying optimism as we go into harvest. For those looking for expansion however, the availability of the right land at the right price remains a barrier to expansion as land prices continue to rise while supply remains static.”

Aside from the concern about available land, planning for the future of the business is a worry for many. 17% of those surveyed at Cereals felt that succession planning was a “great concern” and an additional 39% acknowledged that this was of “some concern”.

Missen continued: “Planning for the business is essential if anticipated levels of growth are to be achieved. In this business more than any other, a long term view must be taken and advice should be sought. For many of those we spoke to succession seems to be creeping up the agenda and planning for this essential. The earlier this can be done the better.”

Of those surveyed by MHA, 54% would consult their accountant as a first port of call when making decisions about their business. Sound financial advice is essential – whether you are planning to expand or looking to hand over the reins to the next generation.

Download




Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


14 April 2015
Farm Manager - Glasgow
The farm runs a small dairy unit, spring-calving suckler herd, a crossbred ewe flock and a research and teaching unit. Univer...

24 April 2015
Quality Manager - FMCG
Educated to Degree level (or equivalent) in Food / Dairy Science or Technology. Ensure that all site activities meet customer...

23 April 2015
Technical Director - Process Engineering, Water / Wastewater
The company has completed contracts in countries throughout the world, working on schemes involving water supply and treatmen...

9 April 2015
Utilities Manager
Expanding to become a global supplier of infant formula ingredients in partnership with Fonterra, a leading Dairy manufacture...

4 April 2015
Technical Coordinator
Maintenance & review of raw material suppliers', packaging suppliers' and dairy suppliers' records and audits....



Top stories you may have missed
10 April 2015 | Agri Safety

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

The time has come for landlords to expect to see reductions in farm rents, ...


8 April 2015 | Cattle

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

The FSA’s new Food Crime Unit wants the industry to share information, some...