Agricultural accountants concern over wheat yields

Specialist agricultural accountants Moore Thompson say this year’s wet weather could be disastrous for the finances of local farmers.

Andrew Heskin – a partner in Moore Thompson’s Farming Sector team

According to the recent figures, this year saw one of the worst wheat harvests, with yields down by 15%, while on-farm stocks are at their lowest level for 12 years.

This year’s UK crop currently 0.3 million tonnes short of total domestic use, which has resulted in imports making up the difference.

Autumn sowings are now at their lowest levels in recent years, with the Farming Online autumn sowing survey revealing that only a third of UK winter wheat crop has been established.

Bad weather has delayed sowings, and further spells of cold and overcast weather mean soils are unlikely to dry out, allowing for autumn drilling.

Late autumn sown wheat generally produces yields 11 to 18% lower than wheat sown and established in September. Wheat sown in the spring generally has a penalty yield of around 30%.

If wheat is sown in the next couple of weeks and established by December, then wheat yields could be no larger than this year’s figures. This represents a 13% reduction in production due to the bad weather and delayed sowings.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team, said: “The wet weather experienced throughout the summer and the autumn has caused chaos for our farmers, hitting them hard in the pocket.

“With high energy and fuel prices the cost of production has already sky-rocketed, so the last thing that was needed was wet weather and a poor wheat harvest.

“We are urging farmers to ensure they are as cost-effective as possible, taking advantage of all the tax reliefs available to them.

“With good financial planning, farmers and producers can offset some of their losses.

“I would urge any agricultural business, which has not already done so, to seek proper financial advice.”

Being at the heart of the Fens, Moore Thompson has always provided specialist accountancy advice to agricultural and horticultural businesses with an agricultural team that knows the farming business inside and out.