Arable Budget 2018-2019

ARABLE BUDGET 1STAPRIL 2018 – 31STMARCH2019 BROWNS FARM

ARABLE BUDGET 1ST APRIL 2018 – 31ST MARCH 2019

Current Farming Position

Farm Details and Cropping • The current farming system is based on 420 hectares of arable crop production. • These 420 hectares are used to grow a variety of arable crops; winter wheat, winter barley, winter oilseed rape, spring beans, combinable peas and sugar beet. • The cropping on the farm varies across the heavy and light land and two rotations are being used. • On the light land the following rotation is being adhered to where possible: - Winter wheat; sugar beet; winter barley; winter oilseed rape; winter wheat; combinable peas • On the heavy land the rotation is more traditional and adhered to where possible: - Winter wheat; winter oilseed rape; winter wheat; spring beans Employment and Business Structure • Brown’s Farm employs one full time member of staff with casual labour employed during the busy periods. The proprietor also provides labour when necessary. • Contractors are used for sugar beet harvesting and haulage and draining and ditching work where appropriate. • Brown’s Farm is currently a family partnership; the partners are husband and wife, Mr & Mrs Brown. • 160 hectares of land is currently rented on a Farm Business Tenancy, this is the heavy land on the holding. The remaining 260 hectares of land is owned.

Machinery • The business has a mature and developed machinery pool.

• The opening valuation of the machinery in the 2018 harvest budget totals £218,356 and there is a structured machinery replacement strategy in place. • All of the operation with the exception of sugar beet harvesting are conducted in hand.

BROWN&CO | ARABLE BUDGET

Establishment and Farming Principles • The farm currently ploughs the land for sugar beet preparation. Ploughing for other crops is avoided, however, is undertaken when conditions are less favourable. • The farmer himself is Basis and Facts qualified and uses the assistance when necessary of the local agronomist. • Crop marketing is conducted by the farmer, the policy is to manage risk where possible by selling a proportion of the crop forward when profitable to do so. Basic Payment Scheme and Environmental Stewardship • Brown’s Farm currently claims the Basic Payment Scheme and meets the requirements of the Greening Rule through a diverse cropping rotation and buffer strips. • Environmental Stewardship has been embraced on the holding and 10 hectares of arable land has been remove from production to satisfy the points target of the scheme. • In addition to infield options, hedge/ditch management, low input permanent pasture and maintenance of old farm buildings have been chosen. • There are 4 hectares of game cover across the farm to accommodate a small in hand shoot for the owner’s family and friends.

BROWN&CO | ARABLE BUDGET

NET FARM INCOME FOR THE 2018 HARVEST

Crops

Acres

Budget £\Acre

Total

Winter Wheat (Light Land) Winter Wheat (Heavy Land)

192.74 192.74 96.37 190.27 93.90 96.37 91.43

260.02 397.70 141.45 263.28 135.60 239.35 441.52

50,115 76,651 13,631 50,094 12,733 23,066 40,367

Winter Barley Winter OSR Spring Beans

D Peas

Sugar Beet

Arable Margins

953.81

279.57

266,657

Enterprise Gross Margin

266,657

Rent Received

9,200 12,600 89,250 7,787

Entry/Higher Level Stewardship

Basic Payment

Miscellaneous Income

118,837 385,494

Total Farm Gross Margin

Less Fixed Costs : Property Costs

£\Acre 11.08 35.21 121.14 31.90 199.33

11,500 36,537 125,726 33,104

Labour

Machinery

General Overheads

206,867

Sub Total

Pre Rent & Finance Surplus

178,627

Rent

76.19 50.73 126.92

79,072 52,651

Finance

131,723

Sub Total

Total Net Farm Income

46,903

Before : Drawings,Pensions,PAYE.etc..

-42,640

Taxation Machinery Lease/HP

-28242 -44,285 1,750 -113,417

Capital Expenses ( Mach purchase/Loan rpmt)

Less Capital Receipts

BROWN&CO | ARABLE BUDGET

FIXED COST BUDGET (SUMMARY SCHEDULE) 1038 ACRES

Budget £/Total

£ / Per Acre

% Turnover

Property Costs Water & Drainage General Repairs

5,500 6,000

5.30 5.78

11,500

11.08

1.97%

Labour Regular Labour Casual Labour

2,025 4,512

30.86 4.35

36,537

35.21

6.26%

Machinery Machinery Costs Depreciation

27,300 45,971 33,955 12,500 6,000

26.31 44.30 32.72 12.04 5.78

Fuel & Oil

Contract & Hire

Electricity

125,726

121.14

21.54%

General Overheads Office General Insurance Professional Fees Miscellaneous

5,504 12,600 7,000 8,000

5.30 12.14 6.74 7.71

33,104

31.90

5.67%

Rent & Financing Costs Rent

79,072 2,410 7,288 3,900 39,054

76.19 2.32 7.02 3.76 37.63

Bank Charges

Current Account Interest

H P Interest

Other Loan Interest

131,723

126.92

22.57%

TOTAL FIXED COSTS

338,591

326.25

58.02%

BROWN&CO | ARABLE BUDGET

PROFIT & LOSS ACCOUNT FOR THE FINANCIAL YEAR 1ST APRIL 2018 TO 31ST MARCH 2019

£

%

Closing Valuation at 31st March 2019

140,370

Of gross Turnover

Winter Wheat (Light Land) Winter Wheat (Heavy Land)

100,253 119,625 32,639 90,144 23,040 34,040 72,975

Winter Barley Winter OSR Spring Beans

D Peas

Sugar Beet

472,716

Less: Opening Valuation at 1st April 2018

(148,306) 464,780

Add: Other Operating Income Rents

9,200 7,787

Misc

Basic Payment Scheme + ELS

101,850

118,837

Gross Output

583,617

Less Variable Costs Seed

37,053 63,468 87,873 7,030 2,699

Fertilisers Sprays

Contract & Haulage

Sundry

198,123

34%

Farm Gross Margin

385,494

66%

Less: Fixed Costs Property Costs

11,500 36,537 125,726 33,104 131,723

2% 6%

Labour Machinery

22% 6% 23% 58%

General Overheads Rent & Financing Costs

338,591

PROFIT/(LOSS) FOR THE YEAR BEFORE DRAWINGS 46,903 8%

BROWN&CO | ARABLE BUDGET

SOURCE & APPLICATION OF FUNDS 1ST APRIL 2018 TO 31ST MARCH 2019

Source

Budget

Application

Budget

Trading

Trading

Profit

46,903

Loss

Decrease in Valuation Decrease in Debtors Increase in Creditors Depr of Machinery Depr of Improvements

7,936

Increase in Valuation Increase in Debtors Decrease in Creditors

45,971

Capital

Capital

Machinery Lease/HP Machinery Purchases

28,242 15,000

Machinery Sales Improvement Grants Disposal of Land & Buildings

1,750

Improvements

Land & Buildings Mortgage & Loan repayments

New Loans

29,285

New HP Introductions

Private

Private

Private Receipts

Partners Drawings Life Assurance

27,800

300

Pensions Taxation

Sub - Total

51,900

Balance

Cash\Bank Decrease Cash\Bank Increase

1,186

Total

102,561

Total

102,561

BROWN&CO | ARABLE BUDGET

FORECAST CASHFLOW 1ST APRIL 2018 – 31ST MARCH 2019

12Mth Total 100,253 119,625 32,639 90,144 23,040 34,040 72,975

Opening Debtors

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Closing Adj12Mth Debtors Total

INCOME

Crop WinterWheat(LightLand) WinterWheat(HeavyLand)

40,600

16,240 16,820

16,008 17,400

27,405

100,253 119,625 32,639 90,144 23,040 34,040 72,975

85,405

WinterBarley WinterOSR SpringBeans

32,639 90,144

23,040

DPeas

34,040

SugarBeet

27,000

36,525

9,450

OtherIncome Rents

9,200 7,787

600

600

600

600

600

2,600 3,894

600

600

600

600

600

600

9,200 7,787

Misc

3,894

BasicPayment+ELS

101,850

3,150

9,450

89,250

101,850

TOTALFARMINGINCOME

591,553

3,750

600

41,200

600

123,383 40,534

43,110

84,048

86,005

4,494

126,375 37,455

591,553

EXPENDITURE

Opening Creditors

Closing Creditors

VariableCosts

Seed

37,053 63,468 87,873 2,699 5,500 6,000 32,025 4,512 27,300 33,955 19,530 6,000 5,504 12,600 7,000 8,000 79,072 2,410 7,288 42,954

4,914

20,193

3,510

8,436 7,172 8,424

37,053 63,468 87,873 2,699 5,500 6,000 32,025 4,512 27,300 33,955 19,530 6,000 5,504 12,600 7,000 8,000 79,072 2,410 7,288 42,954

Fertilisers

56,295 20,488

Sprays Sundry

6,121

19,535

14,719

12,816

1,754

4,016

220

336

184

879

109

323

648

FixedCosts Water&Drainage GeneralRepairs RegularLabour CasualLabour MachineryCosts Contract&Hire TotalElectricity General Insurance ProfessionalFees Miscellaneous Fuel&Oil Office

375 417

1,000

375 417

1,000

375 417

1,000

375 417

1,000

417

417

417

417

417

417

417

1,417 2,669

2,669

2,669

2,669

2,669

2,669 2,256 2,917 1,681

2,669 2,256 5,808 5,208 992

2,669

2,669

2,669

2,669

2,669

2,917 1,000

2,917 1,681

992

2,917 1,000

2,917 1,000 5,208 1,167

2,917 1,681

992

2,917 1,000

2,917 1,681

992

5,808

5,808

5,808 7,238

208

208 167 625

208 167 375

208

208 167 625 625 250

208 167 625 625 250

208 167 375

208

208 167 625 625 250

1,167

1,167

167 375

1,167

167 375

375

375

375

375

12,600

1,125

4,000

500

250

250

500

250

500

250

4,500

250

Rent

39,536

39,536

BankCharges Bank Interest

42

519

42

42

519

42

42

519

42

42

519

42

1,433

1,916

2,014

1,925

Loan&HP Interest

200

9,963

200

200

11,463

200

200

9,963

200

200

9,963

200

TOTALOPERATINGCOSTS

490,742

56,959

41,076

30,066

24,601

26,887

23,481

77,491

25,166

100,833 19,952

21,041

43,189

490,742

Cap&PivRecipts MachinerySold

1,750

1,750

1,750

Cap&PrivExpenditure MachineryBought MachineryLease/HP2

15,000 8,242 29,285 10,000 20,000

15,000 1,166

15,000 28,242 29,285 10,000 20,000

1,166

1,166

1,166

1,166 29,285

15,416

1,166

1,166

1,166

1,166

1,166

1,166

LoansRepaid Pensions SchoolFees Class IVN.I.C. CouncilTax CashDrawn

833

833

833

833

833

833

833

833

833

833

833

833

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

1,667

140 500

12 42

12 42

12 42

12 42

12 42

12 42

12 42

12

12

12 42

12 42

12 42

140 500

42

42

12,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

12,000

NetCapital&PrivateMovements

-113,417

-4,719

-4,719

-4,719

-34,004

-18,969

-17,969

-4,719

-4,719

-4,719

-4,719

-4,719

-4,719

MONTHLYCASHFLOW OpeningBalances

-12,606

-57,928 -45,196 6,415

-58,005 77,526

-916

-39,100 54,162

-19,547 -20,178 100,614 -10,453

CurrentAccBalance DepositAccBalance

-254,674

BankBalance

-254,674

-312,602 -357,798 -351,383 -409,388 -331,862 -332,778 -371,878 -317,716 -337,263 -357,441 -256,827 -267,280

BalanceAtYearEnd

-267,280

-267,280

YOUR REGIONAL CONTACT

James Brown Agricultural Business Consultant 01295 220222 james.brown@brown-co.com West Midlands, The South West, Wales & NI

Northern England Phil Dunn

Agricultural Business Consultant 01652 654833 philip.dunn@brown-co.com Rob Meadley Agricultural Business Consultant 01652 654833 rob.meadley@brown-co.com

Richard Levin Agricultural Business Consultant 01284 725715 richard.levin@brown-co.com

East of England & South East

East Midlands

Charles Whitaker Agricultural Business Consultant 01603 629871 caw@brown-co.com Rob Hughes Agricultural Business Consultant 01553 770771 rob.hughes@brown-co.com Andrew Fundell Agricultural Business Consultant 01603 629871 andrew.fundell@brown-co.com Peter Cox Agricultural Business Consultant 01284 725715 peter.cox@brown-co.com

Paul Waberski Agricultural Business Consultant 1664 502120 paul.waberski@brown-co.com Paul White Agricultural Business Consultant 01476 591991 paul.white@brown-co.com

Made with FlippingBook - professional solution for displaying marketing and sales documents online