Firm News

Moore Thompson urges better financial planning

Moore Thompson chartered accountants are urging farmers to take increasing steps to secure a better financial future.

The warning comes following latest NFU research which suggested many farmers are feeling positive about the future, with 50 per cent looking to increase production in the next five years.

Additionally, the individuals surveyed are planning to invest the same or more in both their buildings (around 62 percent) and skills and training (more than 70 percent).

However, while about 20 percent of farmers enjoyed enhanced profits (compared to 13 percent year-on-year), nearly 30 percent reported a decline in their fortunes or are worried about their prospects of survival.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team, welcomed the figures but warned that farmers still need to take steps to improve productivity and profitability.

He said: “While it is good news that many more farmers are feeling positive about the future, a large proportion of those surveyed also revealed a decline in their fortunes.

“Farmers must realise that proper financial planning is key to a successful future – particularly if they are looking to invest in buildings or training.

“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.”

The survey also revealed the perilous status of the dairy industry, where levels of distress shot up to 42 per cent – a dramatic rise from 25 per cent in 2010.

Only 9.6 per cent of dairy farmers saw an increase in their profits.

“These figures provide further proof of the need for rises in the price of milk to be passed on to the producers – especially as those in the UK are stuck near the bottom of the EU milk price league table,” said Andrew.

“Conversely, there is growing confidence in the sheep and beef sectors, although the profitability expectations prove this optimism is still on shaky ground.

“Overall, the requirement to feed the ever-increasing population worldwide will provide opportunities that British farmers can make the most of.”

Moore Thompson has offices in Wisbech, Spalding and Market Deeping.

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.

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