ICAEW.com works better with JavaScript enabled.

Continue reading

Total income from farming 2019

As we move into early summer, the flow of December and March year ends coming in to the (virtual) office will grow and the first results for harvest 2019 start to be finalised.

Some of these earlier results will be “outliers” where either the client is in financial difficulties and needs figures for the bank or is so well ahead that the profitability will probably reflect a highly efficient unit. As the sample widens, practitioners will start to build a picture of yields and prices which can identify apparent anomalies.

For most practices the picture they see will be local or at best regional. The Total Income from Farming (TIFF) statistics from DEFRA give a national picture, further broken down by region. The UK statistics were published in May, and the English and regional follow up was released in mid-June. The figures are particularly relevant because, excluding proprietor’s drawings and notional rents, they give a result very closely akin to the normal financial statements of a sole trader or farming partnership.