At the time of writing, we are no nearer to knowing when the Brexit uncertainty will be resolved. The details of any eventual deal (or no deal) will have a huge impact on the UK Agriculture industry in the weeks, months and years ahead.
As I see it there are two major considerations around how Brexit will affect the industry:
Other factors on top of the two above are the effect of the currency exchange rates and the freedom of movement of people. Many farmers in the diary, fruit and veg sectors especially rely on eastern European labour at peak times. If these people are not available how does this affect businesses?
As I have detailed above there may be numerous consequences of Brexit, but there is absolutely no certainty, so my first piece of advice is don’t do anything drastic as it is impossible to second guess what will happen.
But what you can do is get a detailed understanding of your business. What do I mean by this?
Why are all of the above important? As stated things will change regardless of the Brexit scenario we end up with. Farming businesses will need to make very quick robust decisions to deal with the challenges and opportunities
The only way a business can do this is by knowing in detail all of the above, how can you make a decision about a particular enterprise or asset sale if you don’t know what it is costing or generating?
If farming incomes drop it is vital you know what cash is required to meet liabilities and the breakeven point etc.
If you don’t know your business position inside out now I encourage you to do so very quickly as it will give you the best chance to make the right decisions and survive whatever outcome we get.
Even if we get a relatively benign outcome, there will still be plenty of challenges around the corner. Climate change, increased environmental pressures and changing consumer tastes are all certain to impact UK Agriculture in the coming years. The successful farmers will be those who understand their businesses and are able to adapt to these challenges.
For advice about planning for your business in these uncertain times, please get in touch by emailing firstname.lastname@example.orgContact Andrew
If you like this article and would like to subscribe to INSPIRED, our FREE monthly newsletter, then please click SUBSCRIBE.Subscribe