Farm Advisory Service

majority of MPs have chosen to ignore the groundswell of public and professional feeling and have voted against a clause that would have safeguarded our own renowned standards and offered crucial protections to the reputation and livelihood of the UK’s farming industry. We have long argued that the UK cannot commit to raising the bar Research released by Barclays has uncovered the impact of the pandemic on consumer grocery shopping habits, as over a quarter (29 per cent) of Scots now suggest they buy produce in local shops and farm stores, instead of supermarket-only purchasing pre-Covid. Over 500k2 Scots had never visited a farm shop prior to the pandemic, but now visit regularly. Further to this, 66 per cent of Scots suggest they will be buying more home-grown produce as a result of the pandemic and Brexit.

These trends are encouraging as the bank launches its Sustainability Through AgriTech campaign in partnership with Nigel Owens MBE, world-renowned rugby union referee and cattle farmer based in Pontyberem, Wales. The campaign aims to support the domestically while allowing in goods that don’t meet the high standards that British consumers rightly want and expect.

“If the government won’t legislate to protect our standards it is vital that the Trade and Agriculture Commission is given more powers and stature to safeguard them in future trade

Scots back UK farming with greener shopping habits

deals.” whole agriculture industry in becoming carbon net zero by 2045, an ambition outlined by the Scottish government.

The research uncovers appetite among Scots for sustainablysourced foods, with 49 per cent looking to purchase seasonal produce, an indication that consumers recognise their role in helping the sector become carbon neutral. Additionally, close to two thirds (65 per cent) believe grocery shopping from local stores and farm shops is better for the environment, and 52 per cent think purchasing from these outlets helps them to better understand where their produce has come from. Encouragingly, farms look increasingly likely to help, with over a half (57 per cent) of farmers planning to sell and process at least some of their produce locally within the next three years.

FARMING SCOTLAND MAGAZINE

Subscription details on page 87 Next issue out January 2021 Understanding the Accounts!

For many farmers it is natural to have a quick look at the bottom line and then put the accounts back into the envelope. However the accounts can tell you a lot about your business, you have paid for them to be produced, spent time entering the bookkeeping information throughout the year and the final step is to understand what they can tell you. This will mean you get the most of out of your investment in the accounts production exercise, and it can be easier to understand than you might think.

One of the most important things your accounts can tell you is whether the profit that you are making is enough to meet the needs of the business. You need profit to provide for

Drawings – in cash (e.g. partners’ ‘wages’), private expenses things paid for by the farm (e.g. a tax bill, or life assurance payments), or private uses (e.g. the private share of farmhouse or vehicle costs).

Debt repayment – with regular loans the repayments you make usually include an interest element (which is what you see in the accounts as an expense) and a capital element (which is not). You may also have hire purchase type agreements to pay down.

Investment – for the business to be sustainable beyond the very short term you need to be able to afford to invest in the business, replacing key equipment, adopting new technologies.

All of this information can be quickly gleaned from your accounts if you know where to look. The Farm Advisory Service are holding a webinar on Tuesday 10th November at 7.30 pm which will show you exactly that, explaining the terminology and concepts in the accounts in an easy to understand way. The event is free to attend and can be booked at https://www.fas. scot/events/event/farmbusiness-toolkit/