Calf

Over the past few years, the agricultural industry has been experiencing numerous hardships and challenges. 

To compound on the existing uncertainty and confusion facing the UK farming sector, the effects of Brexit have further complicated proceedings, with a growing concern among farmers that agriculture will be used as a bargaining chip in a future US-UK trade agreement.

With Prime Minister Theresa May having recently met US President Donald Trump, the President was adamant that a swift bilateral deal with the UK post Brexit would take place regarding new agreements. Consequently, the pressure on the Prime Minister is ever increasing to secure a trade deal with the US as quickly as possible, with many prominent figures including politicians and civil servants suggesting that UK farming should be offered to smooth the process.

A nightmare scenario for UK farmers
The Prime minister has made it clear that the UK will be leaving the European Union single market - a hammer blow to the UK farming industry. In fact, British farmers have made it crystal clear that the most important thing for the industry is that they have access into the European market free of tariffs and free of any non-tariff barriers. Equally important to the industry is that agriculture must not be sacrificed as the UK seeks a free trade deal upon leaving the EU.

In addition to this, the uncertainty surrounding how EU subsidies will be replaced post Brexit and the ongoing pressure surrounding farmers to satisfy supermarket supply chains with low price offerings have put a major strain on the industry. The dilemma in offering low prices to supermarkets is also potentially detrimental to the industry, particularly with rising costs making it more difficult for farmers to meet their own creditors’ demands.

Complicated challenges await lenders
There is no doubt that farming is significantly important in driving the economy forward and in terms of food production. This is particularly the case with industrial farming, which provides a large amount of food for a relatively low cost, and thus helps with food supply and livelihood. Unfortunately, by choosing to sacrifice the farming industry, lenders and their advisors are facing a huge dilemma because of the legal framework associated with partnerships, especially with many farming businesses being structured in this way. Lenders and their advisors will therefore face significant constraints when seeking to offer new lending or devising a strategy to either rescue a customer’s business or exit their relationship with the customer in the form of refinance or in more extreme circumstances, enforcement.

How we can help
Despite the difficult market conditions, if you or one of your clients are in the farming industry, it is important to realise that at PCR, we can assist in reviewing your business and to make sure it is in a position where it is fit for the future. We can look at the structure of your farm and assess its physical and financial assets as well as performance, and advise promptly. You will then be better placed to deal with any uncertainty shrouding your business, and position the business in a way that will promote a long-term plan, despite the uncertainty of Brexit.

We can assist by:

  • Proposing funding options you may not previously have considered
  • Managing cash-flow in order to ease pressure
  • Assisting with financial forecasting and restructuring
  • Analysing the company structure and its viability

OFFER
At PCR we offer a free initial consultation and company health check. The health check will provide answers to SMEs and their owners as to the ability to continue to trade, their viability and available options.

Accessing our offer
Simply telephone your nearest PCR office. Our telephone numbers and advisory team members can be found on the website. You can also access and complete a contact form. Please quote FARMING17 in your correspondence.

Once we are contacted, we will discuss your business with you in more detail and if appropriate arrange for one of our experienced qualified advisors to visit on a day that is convenient to you.

Our promise
Please note this service is free and confidential with no hidden costs or obligations.


Contact Information

Middlesex Office: St. Martin’s House, The Runway, South Ruislip, Middlesex, HA4 6SE
0208 841 5252

Bristol Office: 77A Alma Road, Clifton, Bristol, BS8 2DP
0117 239 0343

Kent Office: Unit 39 The Joiners Shop, Chatham Historic Dockyard, Chatham, Kent, ME4 4TZ
01634 816 066

London Office: 1-7 Harley Street, London, W1G 9QD
0207 291 4465

Milton Keynes Office: 2-14 Margaret Powell House, Midsummer Boulevard, Milton Keynes, MK9 3BN
01908 309 950

Newcastle Office: Suite 108, Collingwood Buildings, 38 Collingwood Street, Newcastle upon Tyne, NE1 1JF
0191 229 9656

Sussex Office: 50 Ham Way, Worthing, West Sussex, BN11 2QH
01903 366 020

Ask for your free health check using our priority contact form ››

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