At RBR Advisory, our professionals’ knowledge and experience in the farming and agribusiness sector provides unique insight for all stakeholders, with the aim of securing the most advantageous solutions in a timely, efficient and effective manner.
With a partner-led service from experienced agriculture expert and licensed insolvency practitioner Paul Barber, our case experience and deep industry expertise means we can apply a real world, tested perspective to even the most challenging of assignments.
Ramifications of Brexit
Like many UK sectors, agriculture is feeling the pinch due to an uncertain political and economic climate which remains, ironically, as clear as mud as 2019 unfolds. Brexit will bring its own complexities but until a Withdrawal Agreement is met with harmony and ratification, it’s difficult to predict exactly how the farming and agriculture sector will be affected. Free and frictionless trade has been widely advocated – a deal that allows continued access to sufficient overseas labour where needed, and supports farmers in providing jobs and driving growth in rural communities, providing the raw materials for a domestic food industry that employs 3.8m people and generates £113bn in value for the UK economy. We wait with baited breath in that regard.
But Brexit aside, the sector has longstanding concerns which have caused financial distress for numerous farms and businesses in recent years – particularly relating to cereals, dairy and pigs where incomes have been steadily decreasing. Levels of borrowing have increased at a time where almost half of all farms are struggling to make a living, with 20% generating a loss even before accounting for family labour and capital according to statistics from 2017.
Cash flow pressures
Cash flow pressures are a consistent them and driving an increase in levels of farm trade credit, with many farmers citing delays in the Basic Payment Scheme (BPS) payments coming through. These pressures are causing a ripple effect that spreads far and wide, with the volatility of output prices negatively impacting on input suppliers, vets, auction marts etc.
At RBR Advisory, we can advise on a range of agricultural business challenges which includes identifying cost reductions, efficiencies, profitability improvements and other opportunities and issues. Through over 35 years’ experience, our team can relate your current pressures to modern-day solutions which includes a wealth of understanding in dealing with perishable goods, livestock, plant and machinery, land, asset finance, and more.
Stats update
- 38% of lamb produced in the UK was exported to the EU in 2014
- An Agriculture & Horticulture Development Board report says the “worst-case” Brexit scenario would cut average farm profits from £38,000 a year to just £15,000
- Around 80,000 EU nationals work in UK agriculture and horticulture, in permanent or seasonal jobs
- £446m of British beef was exported in 2016
- £3.3bn of British food and drink is exported to Ireland every year with the USA, France, Netherlands and Germany our next biggest export destinations.
