Profits within the intensive livestock sectors on the rise

However, for ruminant agriculture and the arable sector, the polar opposite is the case.

These trends reflect the latest farm finance figures available to Omagh-based Seamus McCaffrey and his team of accountants.

It is now obvious that the weather has had a very significant impact on agriculture in Northern Ireland over the past 12 months.

Seamus further explained: “Profits within the pig and poultry sectors have never been higher. And this trend looks set to be maintained.

“However, dairy, beef, sheep and arable farmers remain challenged by high input costs and farmgate prices that have not fully reflected the scale of the investments required at farm levels to maintain business output levels."

He added: “There is also strong evidence, pointing to the fact that the weather played a key role in reducing the profits recorded by farm businesses across Northern Ireland in 2023/24.

“Both silage quantity and quality were key issues on many dairy and livestock farms last winter. But it was arable farmers that were most affected by the weather. The heavy rains last autumn severely impacted on last year’s harvest. Subsequent to this, they had great difficulty getting winter crops for the 2023/24 growing season established.”

Commenting on the outcome of the 2024 General Election, Seamus noted that the new Labour administration has retained a freeze on the personal allowance and the various tax bands up to 2028.

“This retains in place the policies implemented by the previous Conservative government,” he said.

“The tax-free allowance stays at £12,750 while £50,000 remains the income level at which the 40% tax rate kicks-in.

“All of this will have an impact on the amounts of tax paid byself-employed people and partners in partnership.

“In general terms it means that taxpayers will be exposed to higher tax burdensif general incomes rise to any extent over the coming years.”

July 31st is the date on which self-employed people make a payment on account for the current tax year.

The monies to be paid would have been calculated as part of the tax return submitted prior to January 31st – earlier in the year.

Seamus McCaffrey again: “Self-employed people wishing to secure a reduction in the July 31st payment on the basis of a fall-off in profits can do so by submitting what’s called a reducer or SA303 form.

“Accountancy advice should be sought on this matter. However, if it turns out that the subsequent tax return for the year in question confirms that profits did not reduce then HMRC will request full payment of outstanding tax plus interest, back dated to July 31st of the previous year.”

Given the continuing pressure on input costs, Seamus McCaffrey is advising all farmers to carry out regular cash flow projections for their businesses.

He continued: “Merchant credit is a particular issue at the present time. It should be avoided at all costs, given the high interest rates that will be charged.

“Farmers needing short term credit facilities should consider seeking an extension to their overdrafts: it is a cheaper option at the present time.

“However, making this happen will require those making the application to produce accurate cash flow forecasts for their farming businesses.”

For further information, telephone: (028) 82241515.