The Courier & Advertiser (Angus and Dundee)
Seminar will examine the challenges faced by farmers in years ahead
Someone once defined “luck” to me as when preparation meets opportunity.
With current uncertainties created by Brexit, it feels there is little that farmers as primary producers can do in preparation other than interpret the latest political statements and follow the Agricultural Bill through Westminster.
Availability of foreign labour is a major issue for the soft fruit and vegetable sectors, and I know some progress has been made but I suspect the amount of visas to be granted under the 2019/20 pilot scheme is not enough to solve the problem.
In the event of a hard Brexit, I know some businesses in the agricultural supply chain will be directly exposed to duties and tariffs. In that scenario it has the potential to eliminate margins, or create losses on contracts.
Unless significant progress is made in political negotiations as we move closer to March 2019, it is going to get increasingly difficult for sales and purchase orders to be agreed unless the true costs understood.
Whilst some suppliers source their products in the UK, there is likely to be another supplier in the chain who sources some of their products from outside the UK, and therefore the supply cost before and after March 29 could be very different.
In that situation, suppliers would have the option of absorbing the additional costs in the short term, but that is unlikely to be sustainable longer term.
I am convinced if the Brexit uncertainty didn’t exist there would be something else instead, and indeed preparation for the future can take many forms.
I am involved in the Scottish Association of Young Farmers Clubs Cultivating Leaders programme. This is in its fourth year and a group of 16 young farmers from across Scotland come together to spend five days with representatives from the accountancy, banking, legal and surveying professions.
These young farmers are investing in themselves by taking the time to discuss challenges they face, share ideas and of the transaction are learn commercial skills that can be applied in running their businesses or advancing their careers.
They spend time understanding how to prepare business plans, interpreting accounting information, meet the bank’s credit team to learn what they need from lending applications, review partnership agreements and legal issues, and consider valuation and tenancy matters.
It never ceases to amaze me how different each group is, but one thing that is constant is the passion these individuals have to go forward and make their own luck in opportunities that present themselves.
In times of uncertainty it is easy to focus on the difficulties but I believe a strength of the farming sector is the calibre of young people entering the industry.
The more we can do to encourage that the better placed we will be in the future.
To register for the Campbell Dallas breakfast event at the company’s Perth office in Perth on November 28 call 01738 441 888 or email Anna. Macneill@campbelldallas.co.uk.