Professional services
Farmers benefit as profits rise at AF Group
S
hareholder members at AF Group received a to- tal payment of more than
£600,000 for the 2017/18 fi nan- cial year – an increase of 15% on 2016/17.
Turnover at the farmer-owned buying group increased 9% to £255m during the year, with a surplus after tax of £616k – up from £230k in 2016/17. This will enable the business to fur- ther invest in improving admin- istrative and IT operations, and staff training. AF Group chief executive Jon Duffy said: “It has been a very good year for the society and in- deed the group. The performance is the result of the hard work of the AF staff, the support of our membership, and the renewed
strategic partnerships with key suppliers.
“This is an encouraging start
to our fi ve-year strategy, launched in September 2017, which sets ambitious targets on member- ship, the balance sheet, and fi nan- cial returns to members. Howev- er, with the whole supply industry consolidating around us, we can- not stand still.
“The agricultural world is
changing rapidly and some of the changes that we will see post-Brexit could be seismic. I said at the beginning of the year that it was important for any business looking at risk man- agement to get its costs under control. This is exactly what we have done.”
Services and products offered
Farmland market to pick up after subdued start
More farmland is expected to come up for sale over the coming months as the market picks up following a sluggish start to the year, suggests land agents Carter Jonas. Severe weather conditions in during
the fi rst three months of 2018 had a negative impact on activity. But 2400ha of farmland are due to enter the market over the current and subsequent quarter, comprising mostly smaller lots. The fi rst three months of 2018 saw a
minimal dip in land values, which fell 0.6% to average £8,917 per acre across England and Wales. Carter Jonas said this refl ected market fl uctuations as well as uncertainty over Brexit and the future of support payments for rural businesses. While values remain the highest
in southern and central England, where demand for arable land is most pronounced, land in north-west England recorded an average increase of £500 per acre and is now some of the most expensive in the country. The Eastern regions saw values dip,
reaching an average of £8,500 per acre, while prices in Wales, the south-west and the Midlands remained constant. Carter Jonas head of rural agency Andrew Fallows said: “The volume of
62 ANGLIA FARMER • JULY 2018
by the group were streamlined following a review last year. Staff- ing was restructured with full- time staff reduced from 134 to 120. Along with other changes – including sponsorship, market- ing, and third-party support, this saved £500,000 annually. Mr Duffy said: “The group is stronger for doing so and better able to leverage our infl uence so we can continue to offer excep- tional products, with the right quality, delivered with the best service, at the right price.” He added: “We’re moving into a position where we can be confi - dent of withstanding market vol- atility and agile enough to avoid issues as they arise – as well as provide all our members with real value for money.”
Streamlining services and products saved £500k, says Jon Duffy.
stock that is set to come to the market is encouraging, and welcome. Across England and Wales, values continue to be polarised, with neighbouring pockets of land attracting signifi cantly different levels of interest.” Farmland still offered strong, long term investment opportunities, thanks to the
counter-cyclical nature of the market. But he added: “The lack of certainty surrounding the lengthening of sector support is discouraging some businesses from confi dently committing to rural assets in the short term, and has created a more cautious, discerning buyer, one willing to wait for the best value land.”
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