Arable farming businesses are facing a severe cash-flow crisis, fuelled by high tax bills and poor harvest expectations, an expert has warned.
Speaking at the Groundswell event last week, director of farms and estates at Land Family Business Gary Markham said the problem was the result of a number of factors: the 2022 harvest was a bumper harvest for most, with high yields and prices and relatively low input costs for those who purchased early 鈥� resulting in high tax bills in January and July 2024.
High input prices since harvest 2022 have had to be funded and average machinery values are currently running at close to 拢114 per tonne of wheat or 拢988/ha. Establishing harvest 2024 crops has been difficult, with areas redrilled or left fallow
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"Any arable farming business that has not established a reasonable alternative income will find it difficult to fund their way through 2024," said Mr Markham.
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In comparison, benchmarking results for the Groundswell Benchmarking Group of regenerative farms show a working capital requirement of 拢95 per tonne of wheat produced and machinery capital costs of 拢279/ha, with input costs 拢104/ha lower.
The Groundswell Group did not have such a large financial result in 2022 but have a more consistent long-term margin and the five-year average is similar to the conventional system.
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"The game-changer is the new SFI for no-till farming at 拢73/ha for three years. This is the SOH1 SFI new for 2024," said Mr Markham.
Now in its ninth year, this year's Groundswell event saw close to 8,000 visitors passed through the gates of the two-day regenerative agriculture festival at Lannock Manor 51AV视频in Hertfordshire on June 26 and 27.
