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Farmers are being warned they need to find cost savings.

Accountants Warn Farmers to Tighten Belts

It’s time for the region’s farmers to ride out the financial climate and look at costs and efficiencies, say leading chartered accountants Duncan & Toplis.

Duncan & Toplis Director Mark Chatterton, the firm’s agriculture specialist, suggests that although similar conditions have prevailed before, the profit in farming as a whole is currently flat.

Mark said: “The levels of profit we have seen back in 2011 and 2012 are gone. Operating costs and general commodity prices are proving to be a challenge for many in our region, but farmers will be used to this.”

Duncan & Toplis has analysed harvest data for 2015 and found that net farm incomes (NFI) among its clients have fallen by £11 per acre from £62 to £51 since 2014. This is the lowest average profit since 2003.

This is a significant reduction from the harvests in 2011 and 2012 when the average NFI exceeded £150 per acre.

“The NFI needs to cover drawings, tax and reinvestment which often exceeds £50 per acre,” said Mark. “The average farm balance sheet will therefore be seeing a decline this year.

“But although times might seem tough, the region’s farmers are taking heed of the warning to tighten their belts and address efficiencies across the board as well as cost control.”

Mark says all farm businesses have some form of other income – storage, let property rents and diversification income. Also, the impact of renewables in more than half of the businesses for which Duncan & Toplis prepares accounts means this income stream has increased in 2015.

He added: “We’ve been here before, and the region’s farmers are resilient. We can offer advice if there is concern among the community, but the key message is not to bury one’s head in the sand – there are ways to keep costs down and help available.”

Ends

Notes to editors

Duncan & Toplis:

  • Duncan & Toplis was established in 1925 and has since grown into one of the largest independent firms of chartered accountants in the Midlands.
  • The company appears in the top 40 UK accountancy practices list published by Accountancy Age.
  • Duncan & Toplis was named ICAEW East Midlands Medium Accountancy Firm of the Year in March 2014, 2015 and 2016.
  • The company has 11 offices throughout the East Midlands: in Boston, Grantham, Lincoln, Loughborough, Louth, Melton Mowbray, Newark, Skegness, Sleaford, Spalding and Stamford.
  • Duncan & Toplis offers a wide range of services to small and large-sized family businesses, from accountancy, audit and tax to payroll, human resources and computer services.
  • The business employs around 370 staff, of whom 85 are currently engaged in professional training.
  • Duncan & Toplis is a member of Kreston International, a global network of accounting firms currently ranked 12th largest in the world.  The network covers over 100 countries and provides a resource of over 21,000 professional and support staff.
  • Kreston UK is a brand representing firms based in the UK, Ireland, Channel Islands and Isle of Man.  Each firm is a Kreston International member. The Kreston UK network provides national coverage, a resource of over 2,100 professional and support staff and generates annual fee revenues approaching £140m. As a combined organisation, it would rank as the 10th largest UK firm.

For media information please contact:

Mike Shields
Shooting Star
01522 528540
mike@weareshootingstar.co.uk
[Duncan138agriresults]


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