Farming - more than just a business

Land use in the UK is dominated by agriculture with almost three quarters of the country being used for farming of some kind.

 

The industry remains a key source of produce for both this country and for export, and totals more £6bn per year.

 

Subsidies to farmers make up nearly half of this total and are proving vital in keeping many farms running through the recession.

 

Higher costs

 

The costs of producing goods are expensive, and have continued to rise in recent years, impacting on everybody involved.

 

Land is expensive to purchase should farmers wish to expand, while things like fertilisers and weed killer can use up a substantial amount of any budget.

 

When the costs of farm equipment and maintenance are factored in, it becomes increasingly difficult for farmers to turn profits. Failure to turn to specialists in the field of business recovery at this point can prove fatal for the business.

 

Not just a business, but a way of life

 

A lot of farms are family run, and have stayed in those families for generations, meaning many farmers are unwilling to give up what they have.

 

If they do have to cease trading, a little bit of history is lost and it increases the pressure on others in the industry to produce more.

 

Family ties can make it extremely difficult to leave the farms, even if they are in financial trouble.

 

More traditional methods are slowly being thrown out of the window in favour of modern, cost-effective techniques.

 

While this is beneficial to the industry as a whole, there will remain a plucky few who insist that farming methods should not change, even in the face of technological advancement.

 

Agriculture specialists

 

The last few years have proved notably challenging in the world of agriculture, with factors such as changes in legislation and poor weather affecting those in the sector.

 

Moorfields agriculture specialists can assist companies within this sector by advising them on a range of important issues.

 

By Phil Smith

 

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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