How making time to talk about the farm’s future pays off

One of the key aims and benefits of the free business advice offered through Defra’s Future Farming Resilience Fund was to facilitate the start of conversations within farming businesses about their future.

The advice, delivered through farm business consultancy firms to farmers in England, was initially aimed at “hard to reach” farmers who would not usually seek outside help.

James Dunn, technical director, business management, at Adas reckons that, of the roughly 3,000 farmers the firm saw through the fund, about 60% were not previously known to it.

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The day-to-day pressures on all farming businesses mean that, in most cases, those involved had never sat down and discussed the future or done any business planning or analysis, says James.

Creating the opportunity to talk about this must allow all involved to have their say, and for ideas to develop and options to be explored that may not otherwise arise.

The free advice under the Future Farming Resilience Fund ended in March, and there does not appear to be anything planned to follow or replace it.

However, the need to plan for the future remains, and making proper time for this is important, says James.

“Most businesses do have options, but they are not always obvious.

“This was about the future of the business in five, 10 or even 20 years. Succession was an important part of it but it was not just about succession, and it’s not an overnight process.

“You have to understand the people and how they react, and also engage those who usually stay quiet.”

Individual opinions and aims

Talking individually to those involved in the business helps bring out ideas and opinions, as well as some unspoken assumptions, and gives an overall picture of the resources and commitment to the business.

“We would send a report to each individual summarising their position, what they had said about the business and how they saw things, before the final report was put together.

“This would give people a chance to decide whether they wanted to raise an issue or idea, or not. People have to be given the opportunity to say if they are not comfortable with something.”

The final report would record what was said and what had been committed to, says James, so those involved could go away and think about where they wanted to take the business.

“The report is not gospel. Some things change and you have to review plans.”

Feasibility

Sometimes ideas would be put forward as part of the process, for example about alternative enterprises, but because not enough thought had been given to it, it was just not feasible.

This was sometimes simply because the geography, population, skills or other resources were not available.

“There are so many options, but sometimes people are a bit shielded from them,” says James.

He also operates an expanding beef farm, currently finishing 300 head of cattle a year, with his two sons in North Lincolnshire.

Tough decisions

“Sometimes we would have a meeting where it is decided that people cannot work together any longer.

“That is a result as well, because then you can plan an exit rather than getting into a fight, for example over an inheritance where most of it ends up being spent on barristers’ fees.

“If you really can’t talk through anything then it might be time to separate and go a different way. Sometimes that is a relief, but it can take a third party to help that happen,” says James.

Sheep on the Yorkshire Dales

© Adobe Stock

Cost of production

Getting to true costs of production was an important part of many of the business reviews under the Future Farming Resilience Fund, says James.

This was to understand which enterprises were making money and to look at exiting some of those that were not performing, or had any scope to improve them. 

“It’s like putting things under a magnifying glass. Many farmers don’t spend enough time in the office; it’s an eternal problem.

“Sometimes you can make as much money in the office as outside doing the physical work.”