Growing up on the family dairy and sheep farm near Wigton, along with my parents and three siblings, farming was always in my blood. However, at the age of 16, instead of working on the family farm, I had the opportunity to carry out some work experience with a local accountancy firm called David Allen and the then team of just eight people.
After spending the entire summer holidays at the Dalston offices and deciding that a career in accountancy was for me, I took up a full-time apprenticeship with the firm, first completing my AAT and then becoming a Chartered Accountant.
Since joining the firm in 2001 and becoming Chartered in 2006, I have worked my way up the career ladder, the most pivotal and proud moment being in 2013 when I was honoured to be made Agricultural Partner.
Roll forward 21 years since that summer of work experience and it has been a real pleasure being a part of the firm which celebrates its 25-year anniversary this year and has grown from its humble beginnings in David’s garage to the firm it is today, with five offices employing over 140 members of the team. As well as offering accountancy, tax and payroll services we also have expert teams who offer IT solutions, financial services and recovery solutions ensuring that our clients have the full support they require to run their business in these ever-changing times.
As farming played such a large part in my childhood it was only natural for me to focus my career supporting the agricultural sector, and I continue in my gratitude when I say that we have built up such an incredible team who are all immersed in farming heritage and understand the day to day challenges facing the industry, which genuinely makes a significant impact on our clients and the knowledge we can provide. As well as dealing with accountancy and tax matters, we help our clients navigate the ever evolving rules and regulations surrounding farming businesses. Our agricultural team builds relationships based on knowledge, trust, experience and commitment and we firmly believe that working with an accountant who is not just nine-to-five and really understands farming is absolutely essential.
So many of us are wondering what twists and turns the remainder of 2022 has to offer, as so far, 2022 has seen output price rises in various agri-sectors that have been overshadowed by the escalating commodity and input prices, which coupled with the reductions in the Basic Payment amounts received has resulted in even tighter margins and severe consequences on cashflow in many businesses.
We are working closely with our clients to understand the impact of these cost rises and supporting them through these exceptionally challenging times, especially with the prospect of ever increasing feed, energy costs and interest rates as we travel through the year. We hope that the shortage of food, along with the fact that our farmers have some of the highest welfare standards in the world will keep the price of their products high.
However, it is important that businesses review their position and ensure that they are as robust as possible to weather the oncoming challenges. This may involve reviewing the opportunities of the new Environmental Land Management Scheme (ELMS), taking advantage of technology grants or the Slurry Investment Scheme, which is expected to be released in Autumn 2022 to increase business efficiencies. As well as reviewing the profitability of your current business enterprises, one way we can help with this is to benchmark your business against others and identify areas where possible savings, efficiencies or gains could be made.
The covid pandemic has obviously created many challenges for businesses over the last few years, however, it has also created the ‘staycation’ culture, which during the last year many of our diversified businesses with holiday cottages, campsites or pods have significantly benefitted from. All of them say they have never been as busy with many being full back-to-back. Going forward it would be nice to see peoples holiday habits change and this become a permanent choice, which would undoubtedly benefit our rural economy for many years to come.
As well as having to diversify and ensure that grant opportunities are benefitted from, we also have many businesses who are developing and researching ways to become more efficient and profitable. Any company who is doing this should be reviewing if they can benefit from Research & Development tax credits, as well as ensuring that they are taking advantage of the 130% Super-deduction for the purchase of new plant and equipment.
What very much helps me in my role as Agricultural Partner, is that I myself face many of the same challenges as my clients do, as during the last five years I, along with my brother Ashely who has always worked on farms, and the support of our families have built up our own farming business. Initially we started out by renting 80 acres of land and lambing sheep, to where we are today purchasing our own holding and additional land allowing us to develop the business.
Ashley runs the farm day to day, and we initially commenced milking 70 cows in a byre, as well as lambing 400 ewes. We were very fortunate to receive a lot of support and advice in the early days from various people which was invaluable. My team and I always endeavor to adopt this open arm supportive approach like I received.
Starting up the dairy enterprise was a great experience but definitely brought its challenges, however, it certainly gives me more appreciation when working with my clients as to the practical day to day challenges they face. This real-life insight of physically being a farmer myself, provides me with a great deal of understanding and compassion for my clients. I see it through their eyes.
Roll forward five years since Ashely and I first started out on our farming journey, and we have invested and developed the business further, now milking a herd of 190 cows and we continue to lamb the 400 ewes selling the lambs fat through our local auction mart, whilst working alongside our families who are all involved in the day to day running of the farm. Just like many within the farming community, we too are now facing the challenges of rising costs and we are also looking closely at our business to ensure we are as efficient as possible.
I have been very fortunate to have the opportunities I have been given and be able to build a career at David Allen working alongside a fantastic team, as well as being able to build a life on the farm outside of the accountancy practice. This has only been possible due to having such an incredible firm to work for and the support of my wife, Michelle, and two children, Josh (12) and Macie (9).
I often get asked ‘what is coming next?’ and whilst I don’t have a crystal ball, as a firm we are entirely committed to being at the forefront of any new developments or changes in legislation that may have an impact on our clients. In my opinion, looking forward into 2022 it will be a time to review your business and although there may be challenges ahead, there will also be opportunities for many businesses allowing their current enterprises to invest, expand, diversify or simply become more efficient and to allow them to futureproof their business for the generations to come.
I am very passionate, just like we all are within the agricultural community, that farmers are the ‘custodians’ of the land and we all want to ensure that we improve our little bit in the time we have, before we pass it over to the next generation. I am very fortunate to meet many young farmers in my job who are that next generation of our industry, and they give me great confidence that they will adapt and embrace change to ensure our farming heritage is secure for many years to come.
Please do not hesitate to contact Michael and see how he can help you and your Agricultural needs.
