Farm Finance

Long term finance has never been cheaper!

6th MarchPosted by Mike Taylor

Mike Taylor gives opinion on long term finance for farmers

For the last 12 years since the previous recession economists have been forecasting rising interest rates whilst in reality the rates have stayed much the same or gone further down. This week we have seen some of the lowest long-term rates in living memory with the cost of fixed funds for 25 years offered by the Agricultural Mortgage Corporation (AMC) at 0.60%, that is 0.15% below current Bank Base rate which in it...

Are we ready for Brexit?

24th NovemberPosted by Mike Taylor

At long last we have the first glimpse at what Brexit might look like and to be honest it does not look too pretty. When I canvassed opinion of my clients and other farmers leading up to the vote, it was clear that about 75% were in favour of leaving, so the result was no surprise to me.  However it took Westminster and the City by complete surprise.

What voters were not asked is what sort of Brexit they would like.  I think some are now wishing they had been;  what is sauce for the...

Price increase from First Milk

30th AugustPosted by Louise Taylor

According to a report in the Farmers Guardian, last week First Milk chairman, Clive Sharpe, confirmed that the company will increase its September milk prices by up to 1.25ppl.  In a letter to members he said it was the third month running the processor had raised its prices and signalled that there would be a futher increase in October with details being announced at a serices of member meetings later in September.

Mr Sharpe commented "With the market recovering and having exited our...

Muller cuts milk price

1st MarchPosted by Louise Taylor

The Farmers Guardian reports that Muller has cut standard litre milk prices for April by 1.35 ppl, suggesting that there will be unprecedented levels of farm milk production during the Spring, coupled with a weak market demand.

This announcement, which effectively takes prices to 20.36 ppl comes amid a raft of cuts from the UK's major milk processors.  First Milk and Dairy Crest have announced changes to farmgate milk prices and Arla has handed 12 months' notice to direct supply...

Sell Live and Thrive - and help the cashflow on the farm?

16th FebruaryPosted by Louise Taylor

Last month an article in the local paper claimed that Shropshire farmers are “hanging on by the skin of their teeth amid the continued crisis gripping the industry”.  At the same time a poignant article in the Business Clinic section of the Farmers Weekly (15/01/16) rightly reports that whilst a business may not be damaged in the short term by lack of profits, lack of cash can, and probably will, have a devastating effect.

Although payments from the Basic Payment Scheme have now...

Capital value of farmland forecast to grow.

9th JanuaryPosted by Louise Taylor

Savills have reported that the capital value growth of UK farmland is forecast to outperform many commodities markets, residential property, UK gilts and West End offices.  They expect the average value of farmland in the five years from 2012 to increase by 36%, with average growth of 5% in the first 12 months.

This forecast growth follows a substantial rise in average farmland values over the past five years (138 per cent), which was significantly greater than that recorded for...

Muller to cut price to producers from 1st Feb.

4th JanuaryPosted by Louise Taylor

A report in the Farmers Guardian says that dairy products manufacturer Muller, based in Market Drayton, will reduce their price to milk producers by 0.5ppl from February 1st.

The company has written to producers telling them that, following tough trading conditions and a generally disappointing 2011, it needs to achieve a more competitive costs base and hence the need to reduce the producer price.

Milk procurement manager Andrew Gaskell said the cut would leave the firm’s...

RPA announce record payment statistics

22nd DecemberPosted by Louise Taylor

According to a report in the Farmers Guardian, the Rural Payments Agency (RPA) has achieved its December Single Payment Scheme (SPS) targets nearly two weeks ahead of schedule.

The agency has paid more than £1.4 billion to approx 91,400 farmers since the SPS payment window opened on December 1st.

This represents 81 per cent of the estimated value of 2011 payments, against a December target of 78 per cent and 87 per cent of farmers eligible under the scheme, against a target...

Defra announces new Farming and Forestry Scheme

23rd NovemberPosted by Louise Taylor

Defra has announced a new Farming and Forestry Improvement Scheme which will make £20 million available in grants of between £2,500 and £25,000.  The grants will be for qualifying items and further information, including a guidance booklet,  is available on the Defra website. 

The application form for applications under the first round should be available to download from 16th November 2011 when the application period opens.

CAP reform proposals update - what is in store?

9th NovemberPosted by Louise Taylor

Dan Bowden has been researching and analysing the CAP reform proposals and has written a brief information sheet trying to explain what the current proposals might mean to British farmers.

One of the biggest challenges will be proving that you are an 'active farmer' and could potentially result in you having to disclose a great deal of personal information about non-agricultural income. 

Click here to read Dan's newsletter.


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