Humberts Rural Team know the dairy industry has endured a long period of uncertainty with the BREXIT decision made three months ago combined with continued low milk price. There has been some relief that the farming industry has been given short term confidence that the Basic Payment Scheme Payments will remain until 2020.
However the Humberts message is to “plan ahead” and outlined below are some opportunities for farmers to assist with the volatile market:
Diversification: Having other sources of income can help cash flow. For example, converting redundant barns to let out. It is important to consider the cost of conversion relative to the return. This can also add value to the farming asset. Alternatively the barn could be sold subject to planning permission to avoid the cost of converting. This would create a capital injection of funds into the business.
Farm Finance: Talking to your respective contact to discuss your current finance structuring and ensuring there is enough working capital to keep the business functioning effectively.
Government Schemes: There are always new schemes being introduced and it always good to keep checking. The latest scheme is the “Milk Production Reduction Scheme”. The voluntary scheme pays money to farmers who reduce the amount of cows milk they produce over a 3-month period. There is also currently the Great British Food Campaign Grant Scheme aimed at promoting local food tourism.
The Humberts Rural team will be at Stand 145 in the Edmund Rack Pavilion at the Dairy Show on the 5th of October. The team will be offering light refreshments and the opportunity to discuss any of the above in more detail with our experts.