Written by cpm from CPM Magazine
Download PDF If there’s one adage that will ring true for all industries, it’s that turnover is vanity, profit is sanity, but cash is king for business. CPM explores the current financial challenges farmers face and their cashflow considerations for the coming season. By Melanie Jenkins Experts in the industry are saying that prices will settle, and though this isn’t assured, we think they will. Farmers are facing a unique mix of circumstances which are having a financial impact upon their businesses, from the anticipated loss of BPS to the unforeseen war in Ukraine and its far-reaching consequences. Though there were several years to try to prepare for the scaling back and eventual cessation of BPS, the reality of the loss of payment will be hard for many, especially with other pressures on cashflow, according to Will Gemmill at Ceres Rural. “BPS payments will have halved by 2024 and by 2028 they will be completely gone. Historically it’s made up over 50% of the profit of many farming businesses, particularly cereal growers, so it’s a big loss.” Adam White of Barclays concurs: “We’ve seen an increase in fuel, electricity and fertiliser costs impacting all business sectors. Arable and mixed farmers…
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Download PDF If there’s one adage that will ring true for all industries, it’s that turnover is vanity, profit is sanity, but cash is king for business. CPM explores the current financial challenges farmers face and their cashflow considerations for the coming season. By Melanie Jenkins Experts in the industry are saying that prices will settle, and though this isn’t assured, we think they will. Farmers are facing a unique mix of circumstances which are having a financial impact upon their businesses, from the anticipated loss of BPS to the unforeseen war in Ukraine and its far-reaching consequences. Though there were several years to try to prepare for the scaling back and eventual cessation of BPS, the reality of the loss of payment will be hard for many, especially with other pressures on cashflow, according to Will Gemmill at Ceres Rural. “BPS payments will have halved by 2024 and by 2028 they will be completely gone. Historically it’s made up over 50% of the profit of many farming businesses, particularly cereal growers, so it’s a big loss.” Adam White of Barclays concurs: “We’ve seen an increase in fuel, electricity and fertiliser costs impacting all business sectors. Arable and mixed farmers…
The post Farming finance – Cash flow is king appeared first on cpm magazine.
Continue reading on CPM website...
If you are enjoying what you read then why not considering subscribing here: http://www.cpm-magazine.co.uk/subscribe/