In the latest edition of Land Business we look at the importance of branding, contract farming and examine a joint venture in Kent that has boosted profits.
In the latest edition of Land Business we look at the importance of branding, contract farming and examine a joint venture in Kent that has boosted profits.
With a spring drought followed by the coolest, wettest and mostsunless summer on record, weather-beaten farmers are saying that2012 is a year they would rather forget. However, despite themeteorological rollercoaster, farmland is still considered a solidinvestment, and the need to increase food production, together witha lack ofland on the market, continues to boost land values. Butwith extreme weather events becoming the norm - or perhaps thereisn't a norm anymore - combined with a fragile economy, volatileexchangerates and high taxes, how can farmers adapt and plan, andadequately protect their businesses? In turbulent times, contractfarming can help manage risk, spreading fixed costs and providingeconomies of scale for the contractor, while shielding the farmerfrom the extremes of a challenging harvest and providing a tradingenvironment that opens new tax planning opportunities. To workeffectively, these arrangements need to be managed and reviewed.Where they work well, contract farming arrangements can alsorelease time and capital, enabling landowners to pursue otherinterests. From growing new or alternative crops to providing avenue for sport and local events, estates of all sizes cansuccessfully embrace diversification and harness the power ofbranding to create cohesion and add value to their offerings. Asthe year draws to a close it is, perhaps, a good time to takestock, review performance, identify risks and consider how thesecan be managed. Good information, time to think and a consideredstrategy are good targets to concentrate on.