BPS removal, HOW will you replace yours??

[Bossfarmer]

Its time for farmers to now accept their future and prepare, Just watched another video on youtube about the impact the goverments sub removal is having on small farms, given the fact bps goes straight to the net profit and requires no turnover to get im just curious as to how people will replace it?

say your sub was 30k that would need 300k of turnover working on a 10% margin which is about right for ag long term, thats a lot of cattle, i.e you might need 300 sucklers to get that turnover

 

[Bossfarmer]

@DrWazzock @Hilly ive added the topic to a new thread for useful discussion, lets try and be constructive this time

 

[ajd132]

Its time for farmers to now accept their future and prepare, Just watched another video on youtube about the impact the goverments sub removal is having on small farms, given the fact bps goes straight to the net profit and requires no turnover to get im just curious as to how people will replace it?

say your sub was 30k that would need 300k of turnover working on a 10% margin which is about right for ag long term, thats a lot of cattle, i.e you might need 300 sucklers to get that turnover

Some of us accepted this 7 years ago! Bit late now to try and sort out.

 

[DrWazzock]

@DrWazzock @Hilly ive added the topic to a new thread for useful discussion, lets try and be constructive this time

Evolve the business into a green power station / industrial estate?

 

[Hindsight]

Its time for farmers to now accept their future and prepare, Just watched another video on youtube about the impact the goverments sub removal is having on small farms, given the fact bps goes straight to the net profit and requires no turnover to get im just curious as to how people will replace it?

say your sub was 30k that would need 300k of turnover working on a 10% margin which is about right for ag long term, thats a lot of cattle, i.e you might need 300 sucklers to get that turnover

You haven't in your poll included SFI/Stewardship.

 

[Bossfarmer]

Some of us accepted this 7 years ago! Bit late now to try and sort out.

Well this chap has bn ranting and raving about building new sheds, new bit of kit etc etc its like hes only just realised this week whats coming

 

[Bossfarmer]

You haven't in your poll included SFI/Stewardship.

Because you have to take land out of production, currently you get sub on an acre plus the income from a crop of wheat for example

 

[DrWazzock]

Problem is we are like fossils stuck in a rock by the planning system. That’s going to have to change if there’s going to be any chance of economic growth in the countryside.

 

[beardface]

Going off last years accounts were still profitable without BPS as we are, so just keep the business well diversified. Currently arable, sheep, pigs and cattle with arable contracting. Looking at solar to knock electric bill on the head and other non farming diversification where it fits. About all we can do really.

 

[flywheel]

My old neighbour sum s it up ..suckler cows require bps as figures won't add up on its own ..he nor I have don't have sheep so can't answer for sheep farmers ...farm inputs have rocketd in last 2 years but outputs haven't...how can farmer increase cows if he requires more land ,building to winter them up here its near 7 month winter etc .more stock requires staff which needs to be factor in too.

 

[egbert]

Its time for farmers to now accept their future and prepare, Just watched another video on youtube about the impact the goverments sub removal is having on small farms, given the fact bps goes straight to the net profit and requires no turnover to get im just curious as to how people will replace it?

say your sub was 30k that would need 300k of turnover working on a 10% margin which is about right for ag long term, thats a lot of cattle, i.e you might need 300 sucklers to get that turnover

It was a freebie, and was very nice while it lasted.
If you've been using it to prop up the farm business, then doing 'extra' farming when it goes is only going to lose you more money.

If your business is already in profit now (aside from BPS), and you're talking about farming more, to generate extra profit to replace the BPS...be very careful.
If this involves travelling slightly further, taking a slightly higher risk, working yourself a bit harder etc............you might very well find yourself worse off.

Better to accept that if it ain't paying, do less of it, and find some 'off farm' work.

 

[Tamar]

Looking at the budgets on some of our rented land, paying rent and wages will make parts of the business unviable without BPS.

I would say that I farm financially efficiently and have always used the BPS as 100% profit and made sure the other enterprises at the worst break even.

I think there will be alot of farmers hit hard with a big dose of reality once the payment ceases.

 

[ollie989898]

My old neighbour sum s it up ..suckler cows require bps as figures won't add up on its own ..he nor I have don't have sheep so can't answer for sheep farmers ...farm inputs have rocketd in last 2 years but outputs haven't...how can farmer increase cows if he requires more land ,building to winter them up here its near 7 month winter etc .more stock requires staff which needs to be factor in too.

Simple really, finished beef price has to go up or no one will bother rearing them, and rightly so.

 

[DrWazzock]

I’ve been switching to zero or very min till over the last 20 years. That’s probably saved me half the BPS. All done pre grants with my own money.
I’ve also freed up enough time to do another part time job if needs must.
There is maybe a few £k to be had from SFI/stewardship if you don’t have to change much or it’s doesn’t impinge on productivity.
People talk of selling carbon but while I’m importing 3000 litres of diesel and 24 tonne of nitrate I find that hard to believe.

 

[spin cycle]

couldn't watch all of it. what a whinger...he's better off than me

Central issue is do you diversify or work off farm to subsidise food production?...I don't think so myself....so if food production doesn't work for you pile into enviro schemes if possible

 

[Hooby Farmer]

Im going to start an Only Fans

 

[farmerm]

You haven't in your poll included SFI/Stewardship.

Rightly so! SFI/Stewardship doesnt replace BPS.

 

[farmerm]

Simple really, finished beef price has to go up or no one will bother rearing them, and rightly so.

Which will in turn hit arable producers....

 

[Bury the Trash]

Its time for farmers to now accept their future and prepare, Just watched another video on youtube about the impact the goverments sub removal is having on small farms, given the fact bps goes straight to the net profit and requires no turnover to get im just curious as to how people will replace it?

say your sub was 30k that would need 300k of turnover working on a 10% margin which is about right for ag long term, thats a lot of cattle, i.e you might need 300 sucklers to get that turnover

what a load of crap and a very bad advert for farmers.

 

[teslacoils]

I suppose for me the reality is that there is very little I can do to alter grain prices and output. Last year showed that very little to do with the profitability is down to my skill. I can grow a big crop. But now the risk is too high.

It is always interesting talking to the bank manager. He is "new" and young. And he says that very few farmers have an exit plan for their business. Well, mine is very simple. In two years I am going to pack up active farming. In the meantime, with this solar scheme in the offing, all I am doing is aiming to make my farm pretty. So Im getting as much "planning" on my yard as I can to add value. Not that I am going to build any of it. Just get the paperwork. Then come winter 2026 I will, one way or another, be on a sandy beach somewhere else. Cos life is too short to be making long term plans when you are in your mid 40s.

In the meantime, I am doing more work off farm, and if things go as planned I will be working off farm full time come September.