Firm News

Inflation costs for producers could increase risk of future losses say financial experts

Farming experts at Lincolnshire accountants Moore Thompson say they are worried about the hike in input costs for food producers following new research.

An investigation by Anglia Farmers has revealed that farmers have suffered a 13% increase in input costs for food productions over the last year.

The figures were taken from the agricultural purchasing co-operative’s annual AgInflation Index, which uses data from the business’s buying office.

The co-op claims that input costs in the combinable crops sector rose by 3.3 %, compared to 12.3% for dairy, 11.6% for sugar beet, 11.3% for lamb and beef and 10.5% for potatoes.

Anglia Farmers said its figures also showed farmers’ costs had increased by twice as much as the UK’s RPI since 2006.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team, said farmers are finding it difficult to budget ahead with the rise of costs.

He said: “Inflation of 13% is extremely high for anyone to absorb in one year.

“The increase in fuel, electricity, wages and other inputs is putting up the average cost of production. As farmers face highly volatile prices for their produce, inflation in the cost of production increases the risk of loses being made in future years, especially if interest rates should start to rise in 12 to 18 months time.

“The input supply chain within the agricultural supply industry needs to be constantly challenged.

“Financial planning is also key to meeting this increase in costs, at Moore Thompson we have a dedicated and highly trained farming sector team, whose experience and specialisation enables them to offer a personal service covering all aspects of taxation, accountancy and business advice to farmers and growers.”

Moore Thompson, which has offices in Spalding, Wisbech and Market Deeping, has a dedicated and highly trained farming sector team, whose experience and specialisation enables them to offer a personal service covering all aspects of taxation, accountancy and business advice to farmers and growers.

For more information, please contact Moore Thompson in Spalding on 01775 711333, in Wisbech on 01945 465767 or in Market Deeping on 01778 380850, or visit www.moorethompson.co.uk.

Top