It remains a peculiar time, particularly after the turbulence of the recent “mini-budget” and pandemonium within Westminster. Over recent years we have started to adjust to life outside of the EU, commenced recovery from the pandemic, and now we have had a change in both the executive and symbolic branches of government. It will be interesting to observe how the dynamic develops between the new Prime Minister and the new Monarch. Will Rishi Sunak follow through on his campaign promises such as chairing a UK-wide food security summit annually, and reintroduce the role of the UK Rural Advocate to champion the challenges faced and opportunities available to rural communities across the UK?

With an already perplexing mix of issues to fathom, and now change in command at Defra, finding the courage to make decisions for the long term is not easy for those in leadership positions within agriculture. Following her return to the department, time will tell what Therese Coffey has in mind for policy during her tenure and the impact that will have on the years to come.

Whilst most farm gate prices continue to appear strong in a historical context, rising input prices continue to put pressure on the margins many have enjoyed over the last several months. The increased requirement for working capital with higher valued goods will need to be carefully managed as we head into the winter and the uncertainties that 2023 is likely to bring. With stronger trading performance in recent times, consideration should be given to tax liabilities and how the timing of payments will impact on cash flow.

With all that said, a period of challenge and change also provides opportunities for those seeking them out. There would seem to be an increased level of conversation in the industry regarding the future. I notice that for many it feels like a period for observing, to learn more before taking substantial decisions. For others, they are starting to take action, perhaps handing over control to the next generation, or selling out whilst values are strong and giving someone else the opportunity to expand.

The recent IAgrM conference titled “Agriculture’s defining decade: Balancing food and environmental security” encapsulates the current situation. It had an intriguing agenda in a number of key areas, from monetising natural capital to harnessing new technologies to drive productivity. It was great to attend the conference in person this year and listen to the thoughts of the many speakers.

Written by Dan Knight FCA CTA MCIArb

Dan Knight FCA CTA MCIArb

Director

Dan joined the practice in 2019 having previously worked for a regional firm culminating as Head of Rural Tax.

Having grown up on a dairy farm on the Dorset/Somerset border, Dan spent a number of years working in agriculture before becoming a Chartered Accountant and a Chartered Tax Adviser. Harnessing both his practical and professional experience, Dan has spent the last decade advising farming businesses across the region on a wide range of issues.

Passionate about his work, Dan specialises in succession planning and restructuring, helping farming families to implement change, accomplish their ambition and enhance the legacy for future generations.

Dan is a keen shot in the field or facing the trap and thoroughly enjoys supporting his young son on the football field.

T: 01823 462908

E: dan.knight@evolutionabs.co.uk