Category: News

Farming as a Business: Moving Beyond Value Adding to Building Lasting Wealth

Podcast Summary:

In AgriCulture Live Episode 21, James Siggs of Siggs & Co. shares over 30 years of international farming insight, challenging UK producers to rethink their approach to profitability. While land values may look impressive on paper, many British farmers remain stuck in a cycle of reinvestment and poor cash flow. James urges a shift from simply adding value to genuinely creating lasting wealth by focusing on net cash flow, low-input production, and strategic use of core farm resources—land, sunlight, water, carbon, and brainpower. Drawing on global comparisons and regenerative practices, the episode offers practical guidance for breaking free from the “hamster wheel” and building a more resilient, prosperous farming business.

Here is a breakdown of the discussion from the YouTube video about UK farmers transitioning from value adding to wealth creation:

Defining Value Adding vs. Wealth Creating: Many farmers feel like they’re on a “hamster wheel,” working harder without getting ahead [06:04]. They are constantly borrowing to reinvest in the next crop [06:43]. The focus should shift from margins and profit to net cash flow [08:12].
Are UK Farmers Rich? It depends. Many enjoy their work and environment [09:14]. Tenant farmers’ wealth is mainly in livestock and assets [09:49]. Owner-occupiers have land assets, but historically, these only yielded around 2% per annum [10:11].
How UK Farmers Compare Globally: The most profitable farming is palm oil production [11:59]. In the US, many farms are part-time [13:28]. Brazil has seen land prices double, with advanced no-till and bio-control practices [14:12]. Eastern Europe has large farms with good profits [14:55].
How UK Farmers Can Create Wealth:
- Make the most of basic resources: land, sunlight, water, carbon, and your brain [18:42].
- Focus on what can be produced with minimal inputs [20:02].
- Improve soil biology [21:12].
- Consider examples like Salt Carbon Farm and Jake Freestone [20:27].
The Role of Part-Time Farming: Part-time farming is common globally and can be a way to enter the industry [22:21].
Diversification: Diversifying crops and livestock is key to maximizing the use of resources [25:00].
Attracting Young People: Address safety concerns in the industry [25:37]. Recognize the value of part-time farming [25:58].
Recruiting the Right People: It’s essential for building wealth [27:39].
Steps to Start Wealth Creation: Assess farm assets [28:46]. Learn from others and read relevant books, like “Dirt to Soil” by Gabe Brown [29:03]. Determine what the farm can produce with minimal input [29:28].
Next Big Issue: Climate change will impact what, where, and how things are produced [31:03]. Farms may need to revert to producing food, energy, fiber, and building materials, similar to 300 years ago [31:27].

The Joy of Collaboration in Agriculture: A Path to Success

In the ever-evolving landscape of agriculture, we at Siggs & Co. find ourselves fortunate and optimistic. Unlike “Cheerful Charlie” from Clarkson’s Farm, we strive to embody a positive spirit that resonates with our clients and partners. Some have affectionately dubbed me “Joyful James,” a nickname that reflects our forward-thinking approach. Our philosophy revolves around seizing opportunities while keeping a keen eye on the competition, understanding that success lies not only in individual achievement but in collaboration.

The essence of our work at Siggs & Co. relies on building strong relationships. We prioritise working alongside our clients rather than dictating terms—creating a partnership that fosters growth and innovation. This collaborative spirit enables us to harness the diverse strengths of each stakeholder, ensuring that everyone benefits from our efforts.

Having been immersed in the agricultural sector outside of the subsidised realm for many years, we’ve cultivated a disciplined approach. It’s essential to evaluate every decision on its merit, rather than solely chasing financial gain through schemes like the Sustainable Farming Incentive (SFI). While maximizing income through SFI may seem appealing, these decisions must align with the overall vision for our farms, steering us in the right direction rather than diverting us from our goals.

Our focus at Siggs & Co. extends beyond revenue generation; we also emphasise the importance of production costs. A common refrain in our industry reminds us that “turnover is vanity, profit is sanity, and cash flow is reality.” Ultimately, the success of any agricultural endeavour hinges on maintaining a positive net cash flow. This guiding principle underpins our strategy and informs the collaborative efforts we undertake with our clients.

To thrive in this dynamic industry, we must embrace a mindset of positivity, mutual support, and strategic evaluation. By working together, we can navigate challenges, celebrate victories, and ensure that our agricultural endeavours have a sustainable and prosperous future. Let’s continue on this journey with Siggs & Co., focused on collaboration and growth, as we cultivate not just our fields, but also our futures together.

#Agriculture #SustainableFarming #Collaboration #SiggsAndCo #FarmSuccess #PositiveMindset #AgInnovation #CashFlow #ClientPartnerships #FarmingCommunity #Opportunity #GrowthMindset

The Importance of Financial Planning in Farming: A Roadmap to Success

In the world of agriculture, proactive financial planning can make all the difference in ensuring the success of your farm. A recent conversation with a farmer illuminated this idea vividly. He shared his excitement about how utilising online accounting software has transformed his business operations. No longer does he rely solely on last year’s accounts—an outdated method likened to driving a vehicle while constantly gazing in the rearview mirror. With access to real-time financial data, he can now respond swiftly to changes in his business environment, whether those trends are positive or negative.

Rethinking Financial Management

This raises an important question for farmers: How do you view financial planning and management for your farm? Is it merely an administrative task that distracts from agricultural duties, or is it an essential component of your business strategy?
At Siggs and Co., we strongly advocate that effective financial planning is a core requirement for successful farm management. Imagine trying to navigate unfamiliar territory without a map or GPS; you could find yourself lost or, worse, heading in the wrong direction. Without a clear financial plan, it isn’t easy to gauge where you stand financially or to know if you’re progressing toward your goals. In today’s lending environment—where banks focus on affordability rather than just asset value—having a grasp of your financial health is more crucial than ever.

Navigating Market Uncertainties

The agricultural landscape is rife with uncertainties. However, implementing sound financial practices can equip you with a better understanding of your farm’s economic realities. Although navigating these challenges requires foresight and a bit of “crystal ball gazing,” having an actionable plan based on accurate data can significantly mitigate risk and enhance resilience.

Since our inception in 1995, Siggs and Co. has built extensive experience in the global agricultural market, often in regions where farming is met with governmental challenges. Our mission is to empower farmers to navigate their financial journeys strategically—not by selling them farms, livestock, fertilisers, agrochemicals, or machinery but by aligning our success with theirs.

Looking Beyond the Surface

For those who are interested in taking a fresh approach to their farm’s profitability, we encourage you to dig deeper. Rather than simply addressing surface-level symptoms, let’s explore root causes through thoughtful analysis and innovative strategies. This requires not just experience, but also empathy and a genuine understanding of your unique situation and goals.

Want to start this conversation? We invite you to reach out for a no-obligation call or Zoom meeting. Let’s explore how we can partner together to help your farm thrive in today’s challenging environment through sound financial planning.

At the end of the day, the success of your farm depends not just on hard work and dedication, but also on a solid financial foundation that can guide you toward your long-term goals. Don’t leave your success to chance; let’s build a roadmap to success together.

Contact Siggs and Co.

For more information or to schedule a meeting, reach out to us at james.siggs@siggsandco.com tel: 01398 392011. We look forward to partnering with you on your journey to greater profitability and success in agriculture.

Choosing the Right Maize Variety for Sustainable Farming Incentives: A Guide for South West Farmers

In recent visits to farms throughout the South West, one question continues to arise: “Which Sustainable Farming Incentive (SFI) action is best suited for maize?” A highly effective and rewarding action is the planting of winter cover crops following maize harvesting. This approach not only provides excellent payments per acre but also enhances soil health and helps in managing nutrient runoff. However, executing it successfully can present challenges, particularly surrounding the timely establishment of cover crops.

The Timely Establishment Challenge

Under the SFI framework, winter cover crops must be firmly established by mid-October. This step is crucial for ensuring that ground cover is adequate from early December through late February. Yet, the overlap of maize harvesting and planting a cover crop, such as winter cereal or Italian ryegrass, before the deadline can be complicated. Key factors include:

– Weather variability that can delay harvesting.
– Harvest timing that can be impacted by soil health conditions.
– The potential for adverse conditions in autumn limiting available harvest days.

The Key to Success: Variety Selection

Choosing the appropriate maize variety is fundamental to overcoming these obstacles. Although it may be tempting to opt for high-yielding varieties, these often present significant challenges. Here’s why careful selection matters:

Late-Maturing Varieties:
High-yielding maize varieties often mature later in the season, leading to various complications, such as:
– A reduced number of daylight hours available directly correlating with the harvest window.
– Elevated crop moisture levels which can raise drying costs.
– Potentially adverse autumn weather limiting the number of harvest days.
– The likelihood of wet soil conditions, increasing the risk of compaction during machinery use.
– Difficulty in establishing cover crops due to falling soil temperatures.

Feed Quality Concerns:

Harvest delays can also mean that maize is harvested below its nutritional peak, potentially diminishing the quality of feed due to weather constraints and the busy schedules of contractors in autumn.

The Advantages of Early-Maturing Varieties

Early-maturing maize varieties can significantly alleviate many of these challenges while providing several benefits for farmers in the South West:

1. Timely Harvest
Early-maturing varieties can be harvested as early as September, providing adequate time for establishing winter cover or cash crops.

2. Effective Establishment
Harvesting earlier allows for higher soil temperatures, which promote quicker germination and successful establishment of subsequent crops.

3. Reduced Soil Damage
Harvesting during drier conditions reduces the impacts of soil compaction and erosion, minimizing the necessity for extensive soil cultivation.

4. Enhanced Feed Quality
These varieties are more likely to be harvested at their nutritional peak, leading to superior quality feed for livestock.

5. Environmental Benefits
A well-established cover or cash crop curtails soil erosion and diminishes nutrient runoff into local waters, supporting both farming sustainability and environmental health.

Striking a Balanced Approach

While early-maturing maize varieties may yield slightly less than their later counterparts, the many benefits often overshadow this aspect. This approach offers farmers increased harvesting flexibility, improved feed quality, and significantly mitigated risks related to soil health and sustainability.

Where to Begin

Unsure of which maize variety is optimal for your farm? The NIAB Maize Descriptive List for 2025 is a fantastic resource. It provides detailed insights into early-maturing varieties that are best suited for various farming needs.

01398 392011

hello@siggsandco.com