What a wonderful spell of weather we are in and indeed what a kind winter we have enjoyed.

It is an appropriate time of year to take stock looking back at what has been for most of us a pretty miserable couple of accounting years; and planning ahead for the new growing season.

It is also traditionally the financial year end for a lot of farming businesses which demands the discipline of a stocktaking valuation.

I am well into my annual pilgrimage to clients around the county and here are a few reminders for those yet to tackle the task:-

• Livestock

Even if you don’t complete all the paperwork, it is essential to make a note of livestock numbers be they cattle, sheep, pigs, goats, horses, poultry or alpacas. It is useful also to add comments on gender, age, weight, and anything else that might be relevant to value.

Don’t forget there are different rules for homebred and bought in stock.

Homebred animal’s values should reflect the cost of production or “deemed cost of production”; but for bought in animals you need to set down the actual cost of purchase plus the cost of keep since.

For homebred animals the Inland Revenue allow a discount off market value of up to 40% for cattle, and 25% for sheep.

• Produce

This covers anything that is left on the farm and was produced on the farm such as cereals, roots, silage, hay and straw.

Quantities and quality are important; and the Revenue allow a discount of 25% of market value to arrive a deemed cost for accounting purposes.

• Growing Crops

There is a temptation to put in an average cost per acre for all the growing crops in the ground at the valuation date; but I do not believe this is technically correct and would be open to challenge.

The cost of the growing crops is a building blocks exercise made up of the various elements of cultivations, seeds, fertiliser and sprays.

These will vary not only from crop to crop but also farm to farm and should be recorded accurately.

• Purchase Stock

All purchased stock that has been delivered and invoiced should be listed whether or not it has been used; but don’t forget to show those accounts that have not yet been paid as they will be credited at the year end.

• Purchased Feed and Fuel

As a final heading I use Purchased Feed and Fuel, under which goes any misfits such as unused purchased feed, fuel and items like semen on dairy farms.

I hope the above is helpful but if you are struggling take advice.

 

BPS UPDATE

Very little seems to have happened in the last fortnight since the online system was put on hold.

I tried to look on the BPS website but it is closed for the time being!

The next major milestone will be the issue of pre-populated forms which we are told will be sent out online provided claimants have an email address.

There is no information on timing but we were promised them by mid-April and our advice still is to wait until these arrive before completing your form.

What we can get on with is the transfer of any Entitlement using the old RLE1 forms which have to be submitted by midnight on the 15th May.

My professional body is in discussions with the RPA to try and get this extended to the 15th June and I will report any progress. It is not a time for complacency but we do have an enforced period in which to draw breath before the final assault.