Farm Management May 21, 2013 12:00 am DEFRA has published a number of statistical releases in May, including ones looking at farm management practices and farmer intentions. Farmer Intentions The Farmer Intentions Survey 2011/12 was published on 2nd May, the results are obtained from the Farm Business Survey (FBS). It looks at what ‘major changes’ farmers intend to make in their businesses. Major change encompasses such things as winding-down, expanding enterprises, entering an agri-environment scheme, diversifying, or making investments. The results show that approximately a third of farmers intend to make a major change to their business within the next 12 months and a similar amount within the coming 12 to 36 months. Interestingly, about a quarter of those who said they were intending to make a change within the next 12 months in last year’s survey, failed to actually make any alterations. In contrast a fifth of those who said they wouldn’t be making a change did. Overall, approximately one third of farms carried out a major change to their business last year. The most common type of change is to an individual enterprise. Perhaps conveying the current lack of confidence in the industry, only 22% intend to make a major investment within the next 12 months compared to last year when 43% of farmers in the survey carried out a major investment. Business Managment The results of the Business Management Practices on Farm 2011/12 England was released on 21st May. This is also sourced from the FBS. The results reveal information on education and qualifications held within the industry, about areas where farmers would like further knowledge & skills, business planning, risk management, Continuing Professional Development, agri-environment practice and accessing advice. Some of the headline points are that 60% of farm businesses have someone in a managerial role who has a college/national diploma/certificate level qualification or higher. Older farmers, smaller farmers and livestock farmers are less likely to have further or higher education qualifications, and those businesses without such qualifications tend to be poorer performing. Nearly 80% of farm businesses undertake business planning, benchmarking or management accounting. Of those undertaking such practices, 75% produce an informal business plan (i.e. 60% of all farmers). Only just over a quarter of all farms regularly produce a formal business plan which is periodically reviewed. The same percentage do budgets, cash flows, gross margins, etc and a quarter of farms regularly attend discussion groups on business management issues. But two thirds of farm businesses do not wish to gain additional knowledge and skills in these areas. This response is more likely on smaller farms and with older farmers. Interestingly 95% of businesses said they access business management advice; up from 82% in 2007/08. However, the most common source was farming media, free advice, and talking to other farmers. Only a little over a quarter of respondents accessed paid-for business management advice. Around 45% received advice through discussion groups, farm walks and workshops. Other Statistics Other statistical releases published this month include; Rural Broadband (average speeds) and the effects of the Rural Community Broadband Fund Agri-environment and England Natural Environment Indicators Rural Expenditure; Rural Enterprise; Rural Earnings Rural Population and Migration Farm Business Income (time series). Although the results are the same as those released on 31st January (see Bulletin 02 (13)) With the reorganisation of the DEFRA website, it is now rather difficult to find some of the statistical information published by the Department. The following link shows the most recent statistical reports including all those mentioned above: https://www.gov.uk/government/publications?departments%5B%5D=department-for-environment-food-rural-affairs&publication_filter_option=statistics
