Key factors in farming success

Despite the clear importance of securing the best Brexit deal, eight key factors have been highlighted in a report released this week which will place farm businesses in the best position to weather any storm.

Modelling exercises into the different Brexit outcomes carried out by the Agricultural and Horticultural Development Board (AHDB) had indicated that the top 25 per cent of farmers could turn a profit almost regardless of policy outcome. “This raised many questions, the most fundamental of which was what are the top-perform- ing farms doing differently?” said AHDB strategic insight manager Sarah Baker.

She said the report which was jointly drawn up by the AHDB, Quality Meat Scotland (QMS) and its Welsh counterpart looked at the variations between the best performing farms and other farm businesses.

It found that the difference in farm business income between the top performing 25 per cent and the lowest 25 per cent was about £40,000 per year in Wales, £50,000 per year in England and £60,000 in Scotland.

The report found the most successful farms all showed the following characteristics: minimising overhead costs; a clear business strategy; set goals and budgets; benchmarking; knowledge of the market; a focus on detail; a mindset for change and innovation; the ability to remain disciplined and to stick to strategies.

“During this period of considerable uncertainty that Brexit has triggered, this report highlights how important it is for farmers to have a clear vison for their businesses,” said Stuart Ashworth, QMS director of economics.

He added that it also highlighted the need to focus on details within their control as well as adopting innovative ideas.