Proper budgeting can help fight off the storm

Farmers can only effectively steer their business through unprecedented weather conditions by properly budgeting, visitors to Cereals 2013 heard.

Speaking at the leading technical event for the arable industry, HSBC’s head of agriculture Allan Wilkinson said it was important for farmers to maintain an open dialogue with their bank.

Mr Wilkinson, whose bank was principal sponsor of Cereals 2013, said: “Our business is built upon a long-held belief that the relationship with the farming customer is at the heart of what we do and stand for. One poor year does not materially affect a well-run farming business.

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“We have therefore been tailoring our assistance to farming businesses based on their particular situation and requirements.

“In many cases, this has taken the form of additional working capital, ranging from relatively modest requests, to cover additional monthly feed costs for example, to more substantial seasonal requirements for managing the business up to the next planned income following harvest or autumn stock sales.”

He added: “Ensuring the long-term future of the business, and making sure that farmers and their families achieve the right outcome is at the heart of this thought process.

“I am regularly asked what the very best businesses do to ensure the best outcome going forward.

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“Budgeting and benchmarking are the key traits regularly seen in our most successful farming businesses.

“These businesses are often not the biggest in a locality, and to the surprise of many they do not always receive the highest price for their cattle, milk or grain.

“But by focusing on their cost base, and balancing this with efficient and high levels of output, they are able to return higher levels of profit and cash generation to re-invest in their business.”

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