Insolvency threatens more Yorkshire agricultural firms
The number of agricultural firms facing an above average risk of insolvency in Yorkshire has surged by 7.4%, new figures show.
Data from insolvency and restructuring trade body R3, compiled using Bureau Van Dijkâ€™s Fame database, reveal that around 430 agricultural firms are facing greater insolvency risk.
Overall, 23.5% of Yorkshireâ€™s agricultural are deemed to be in that position, which is marginally below the national average of 24.3%.
Three other regions were also below the national average â€“ the East of England, East Midlands and Scotland â€“ with all other parts of the UK facing an even greater insolvency risk.
R3â€™s Yorkshire chairwoman Eleanor Temple, said the sector is facing a number of challengers, despite showing a certain degree if resilience.
She highlighted uncertainty over what a Brexit â€˜no dealâ€™ may mean for farmers, with those concerns echoing those of the Agriculture and Development Board, which works to advise British farmers.
Given that agricultural businesses have a wide variety of working capital cycles depending on their exact areas of operation, farmers are encouraged to seek advice if they have any concerns.
â€œEnsuring that you keep a close eye on cash flow and seek professional advice at the first sign of trouble will be vital to weathering the storm,â€ explained Ms Temple.
Advisory services could provide methods to reduce costs, streamline operations or to just stabilise a business facing turbulent times or worse, insolvency.
The agricultural sector could face greater competition from non-EU producers and the loss of subsidies in the years ahead, which could pile further pressure onto the market.
Yorkshire saw a 3.8% jump in the number of firms deemed to be at above average risk of insolvency in November, marginally below the national average increase of 3.9%.
While restructuring or refinancing can provide valuable assistance for firms facing tough times, the key to overcoming issues â€“ which cannot be overstated â€“ is to act early.
By Phil Smith