By FWi staff
TOO many farmers are still running their businesses without using a meaningful budget, says Lloyds TSB.
“Our 2001 Focus on Farming survey showed that just one-third of farmers used budgets or farm business plans – judging their financial success only by looking at their bank statements,” notes head of agriculture Tim Porter.
“This is a dangerous policy.
“Few travellers would set out into the unknown without so much as a rudimentary map, and yet, in business terms this is what many farmers do every year,” he adds.
He says this lack of planning could also partially explain the growing gap between the best and worst performing farm businesses.
“There is some evidence that the top producers do tend to prepare budgets and plan ahead.”
To encourage farmers to get into the budgeting habit the bank has released Farm Budgeting and Business Planning 2002, the latest in its series of agricultural business guides.
Copies can be obtained by e-mailing email@example.com or from 0117-943 3114.