Mark Chatterton, the Head of Agriculture at one of the largest accountancy firms in the UK, Duncan and Toplis, has described the recent flooding in parts of Nottinghamsire, Lincolnshire and Leicestershire as “heartbreaking” for the farmers affected.
Chatterton said that the flooding in these areas have been the worst he has seen at any stage during his 24 year career.
“We thought 2019 was bad – the worst flooding for many, many years – but this truly is unprecedented.
“In 2019, the rains started in October, when many fields were undrilled, so the damage was limited. This time, the rain began after winter wheat and barley had been planted in October.
“As a result, the work and expense of cultivating, drilling and carrying out pre-emergent sprays has been wasted, with seed being flooded and failing to germinate.
“Fields will now need to be drilled with a spring crop, but available seed is in very short supply – costs of £800/t rather than £300/t are being quoted for spring wheat and barley, for instance.
“Some farmers may have their own seed that can be dressed, but most will not have this luxury because few farms grew spring varieties in 2023,” he said.
Flooding on farms
From a financial point of view, flooding can be detrimental to farmers. Had the flooding occurred prior to planting, the aftermath may not be as severe, however this was not the case.
“Speaking to farming families that had made all the right decisions, working day in and day out to run a profitable business only to find their profits washed away in front of their eyes is truly heart breaking.
“My advice is to create a new cash flow forecast, work out the impact that the situation will have for the next two years, and work out ways to reduce costs throughout this period.
“This might mean putting off capital investments in property or carrying out non-urgent repairs, and farmers should also look to draw on their private capital.
“Meanwhile, tax planning will be important because there will be large bills to pay on last year’s more successful harvest. I’d urge farmers to seek out professional advice and support immediately,” the director said.
