The Scotsman

Author hopes latest pocketbook edition will give industry a lift

- By BRIAN HENDERSON

The farming outlook for 2019 is mixed according to the most recent edition of the Nix Farm Management Pocketbook, which was released this week.

Author Graham Redman of the Andersons Centre said that while some sectors, mostly in the arable side of farming, looked brighter than for 2018, for other farming types the outlook was more challengin­g.

And he warned that even in sectors such as dairying where output prices were seeing a welcome improvemen­t, costs were rising just as fast – making it difficult to retain any additional income as profit.

“Prices change very quickly in either direction, reminding us of the volatility of commodity markets and therefore how carefully such businesses need to be managed” said Redman, adding “it is also notable that even where output values are seen rising, often, the costs are rising at a faster rate, putting additional pressure on the farm profitabil­ity.”

With this edition set to cover the industry as the UK prepares to leave the EU, he said that farmers remained largely in the dark over how farm profitably would be effected.

“This makes it more important than ever that farmers take greater control of the management of their business.”

He said that work carried out by the AHDB showed that those who outperform­ed the average farmer in each sector and especially reach the top quartile, were likely to remain viable in a post-brexit world, regardless of support and trade deal outcomes.

The figures in the management pocketbook would, he claimed, help farmers judge how they were performing – both in terms of output and in associated overheads and fixed costs. “Difference­s in overheads usually account for the biggest cost difference between the best and the rest, so this book provides clues to reducing costs on each farm whilst keeping output high. Understand­ing your business to maximise its potential is imperative”, said Redman.

Redman also paid tribute to Professor John Nix – originator of the pocketbook more than 50 years ago – who died in March: “One definition of a great life is to spend it creating something that will outlast you. Through the John Nix Pocketbook, the legacy of Professor Nix continues and will hopefully continue to do so for many years yet. His Pocketbook is designed to help farmers, students and other agribusine­ss profession­als to do precisely the same with their businesses and lives and create something that lasts.”

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