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Farm Business
Agricultural Matters
Turnover vanity profit sanity….what a load of tosh
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<blockquote data-quote="puppet" data-source="post: 9201815" data-attributes="member: 25962"><p>Depends how much profit you should make. If you want to make £60k you can make 30% on £200k or 10% on £600k turnover.</p><p>I know which one I would rather be doing.</p><p>The margin can certainly be increased as there is far too much metal on farms. Probably driven by historical subsidy payments and farmers not wanting to make much profit and pay tax. </p><p>It is very hard and unpredictable to increase income on a unit of produce so you need more produce. This takes borrowing, labour and land further away which all eats into the margin making your last litre of milk or ton of wheat the most expensive.</p></blockquote><p></p>
[QUOTE="puppet, post: 9201815, member: 25962"] Depends how much profit you should make. If you want to make £60k you can make 30% on £200k or 10% on £600k turnover. I know which one I would rather be doing. The margin can certainly be increased as there is far too much metal on farms. Probably driven by historical subsidy payments and farmers not wanting to make much profit and pay tax. It is very hard and unpredictable to increase income on a unit of produce so you need more produce. This takes borrowing, labour and land further away which all eats into the margin making your last litre of milk or ton of wheat the most expensive. [/QUOTE]
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Turnover vanity profit sanity….what a load of tosh
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