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
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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
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