Originally from: Farmtalking
                        
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Originally from – http://www.defra.gov.uk/news/latest/2004/Farmmleaflet-270204.htm

New guide to help boost farm profits through better management

Farmers who want to boost profits and plan more effectively by improving their business management skills, can now 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.

The guide is designed to be a user friendly as possible, providing farmers with a step-by-step approach that uses accounts from a fictional 'Home Farm' in order to better illustrate the route to smarter, more effective accounting.

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 when assessing business performance, it should be used in addion to advice from other sources. 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 boost 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.

Further information
'Figures for a Farming Future – Getting Started in Farm Management Accounting' is available free on request from Defra, it can be found online at Defra's farming advice pages – http://www.defra.gov.uk/farm/fbadvice/farm-accounting/index.htm or by telephone on 08459 556000 or by post at the following address:

Defra Publications
Admail 6000
London
SW1A 2XX

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 also have copies of the guide.

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/bdotg/action/home

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.