What should farming and land business be doing now in preparation?
Although there may be numerous consequences of Brexit deal or no deal, there is absolutely no certainty, so first and foremost 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:
- Do you know how much cash flow a year your business requires to service debt and owners drawings?
- What would a profit and cash flow look like with no support payments?
- What is the gross margin for each enterprise? - What is your cost of production for each product (i.e. per lamb, KG of Beef, a ton of grain or litre of Milk)?
- What are your tenancy agreements and how long are they?
- Who owns the land and the terms of any lending?
Why are all of the above important?
If you don’t know your business position inside out now I encourage you to do so, as it will give you the best chance to make the right decisions and survive whatever outcome we get.
For the latest government information during the transition period, please visit https://www.gov.uk/transition.