Thursday 17:25
Farmers who want to boost profits and plan ahead better by improving their business management skills can get help and advice from a new government guide published today by Defra.
The new two-part booklet 'Figures for a Farming Future - Getting Started in Farm Management Accounting' aims to help farmers map out a viable financial future, and sets out simple ways of making better use of accounts.
It also introduces basic farm business management techniques to help farmers plan ahead and assess options for change.
Accounts from a fictional 'Home Farm' are used to illustrate a step-by-step approach to smarter, more effective accounting, to make the guide as user- friendly as possible.
Food and Farming Minister Lord Whitty said;
"Managing a business effectively is more important than ever in the current climate of CAP reform and changes in agriculture. More and more, decisions will have to be made based on market signals rather than subsidies.
Our guide is designed to help farmers make sound business decisions, but they should also get advice from other sources when assessing their business performance. This could be from their own accountants or consultants.
Sir Don Curry said;
"These booklets form a key part of the Sustainable Farming and Food Strategy. They are aimed at all farmers who wish to raise their skills in business management, planning and budgeting.
"They cannot provide all the answers, but they do provide a starting point. The Food Chain Centre has gathered evidence from farmers who practice benchmarking techniques like these and shown that it can produce beneficial results."
The first booklet, 'Using the Farm Accounts to Point the Way' was circulated with this week's issue of Farmers Weekly magazine. The second, 'Mapping out a Farming Future', will follow in the 12 March edition.
The Country Land and Business Association, Forward Farming (Elite Consortium), HSBC, The Royal Bank of Scotland, Barclays Bank, Lloyds TSB, the Red Meat Industry Forum, the British Institute of Agricultural Consultants, and the Farm Business Advice Service, the Home Grown Cereals Authority, and the NFU will have copies of the guide.
The guide is also available free on request from Defra at: Defra Publications Admail 6000 London SW1A 2XX
Tel: 08459 556000
http://www.defra.gov.uk/farm/fbadvice/farm-accounting/index.htm
NOTES TO EDITORS
1. The guide was drafted by Harper Adams University College and tested among a small sample of farmers around the country, as well as by the Institute of Chartered Accountants in England and Wales and the British Institute of Agricultural Consultants.
2. The guide is published as part of ongoing work under Defra's Sustainable Farming and Food Strategy, published in December 2002. It forms part of a project to improve management accounting and benchmarking for farmers.
Other elements of the project will follow later this year and include
* A guide to converting a farm's financial accounts into management accounts. * An interactive database which will allow farmers to compare the financial results from their business with averages from the Farm Business Survey.
* Publication covering management accounting terms and definitions and their application in farm business management in more detail.
3. A wide range of business support information and services is available to farmers through the Small Business Service http://www.sbs.gov.uk and the Business Links network http://www.businesslink.gov.uk
Public enquiries 08459 335577; Press notices are available on our website http://www.defra.gov.uk Defra's aim is sustainable development
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