IT is fair to say that many farming businesses do not have the expertise or enthusiasm to successfully diversify away from the core business , let alone the appropriate location .

So the burning question is : How can we find a way to fill the void created by the loss of BPS and ensure a financially viable farming business continues ?

One option being discussed with clients is to intelligently use the new environmental schemes to both increase the income generated and reduce the costs incurred .

This concept involves farming only the best parts of the field in the most efficient way - whilst the unproductive &/ or awkward areas are included in an environmental scheme , which receives a significant payment .

When looking at yield data , it is highly likely that the lowest yielding parts of the fields will be the headlands and awkward corners we are not farming efficiently . These areas will have the same , if not higher , variable costs as the central part of the field , but the yield is lower .

As a result , these areas are going to generate the lowest income per acre

Robert Sullivan MBPR PMAIGRM is an experienced Farm Business Consultant with over 30 years ’ experience in providing advice across all farm types . He has worked for a number of national firms during his career before joining GSC Grays in 2017 to lead the Farm Business Services Team . Robert provides technical , business , and strategic advice to farmers and growers across the North of England covering all aspects of the modern farm business . Robert can be contacted at 03333 059059 / RJS @ GSCGRAYS . CO . UK

and be the least profitable areas of the field .

In total contrast , the central , and most often best , parts of the field will generate much higher yields and hence income per acre , considerably higher than the current field average , resulting in these areas being the most profitable parts of the field .

So what about those awkward areas and headlands , which are not

economic to farm ? They are then entered into an environmental scheme where annual payments of over £ 600 / ha can be achieved .

Combining the two elements of higher yields with more efficient use of the variable inputs , along with the labour and machinery pool results in a significant increase in the profitability from the area being actively farmed . With the

environmental payments on the less productive areas being greater than can be achieved from farming the land , the overall financial return increases significantly .

However , to fully realise the benefits of this concept , there will need to be a change of mindset in terms of managing arable businesses going forward . This will involve changes in the labour and machinery pool of most businesses , so that these closely match the area being farmed . The area being farmed will also

be a totally different area to the area that is occupied and managed by the business .

Overall , this concept could well allow us to square the circle - farmers continue to farm the best land efficiently , whilst benefiting from environmental payments on the remainder . This will enable them to continue to do what they enjoy doing , fill the void created by the loss of BPS and ensure a financially viable and sustainable business for the future .