Change In Farming Model - LGF

Question 1

What did your LGF evaluation look @?

Answer 1

• returns over the past 3-years
• cost of variable/direct costs
• gross margins @ Floors vs Mellendean
• Machinery replacement costs

Question 2

Did you advertise the opportunity?

Answer 2

No because;
- the existing relationship was good.
- we knew these contractors could produce the said returns.
- they were eager to expand, we saw an opportunity to support.
- they were young, relativity new entrants to farming.

Question 3

What was the average return to Floors run in hand?

Answer 3

£380/ac

Question 4

What were you forecast in a CFA?

Answer 4

£800/ac

Question 5

What was your basic fee?

Answer 5

£450/ac

Question 6

The contractors basic?

Answer 6

£740/ac

Question 7

What were your reccomendations?

Answer 7

I advised;
- Our returns would be greater if we entered into a CFA
- In order to align with our sustainable farming vision, mass expense was required.
- Estate contract farmers were looking to expand.
- I also advised we blanket sample the entirety of the LGF with the PSF incentive. This would allow a ROC of the soils.