Farm businesses in England are under pressure to intensify production sustainably while managing costs and meeting market demands. Commodity prices and support from Common Agricultural Policy (CAP) payments are important determinants of profitability.
With the United Kingdom (UK) leaving the European Union (EU), revised policy will see farming more exposed to fluctuating commodity prices and financial support from Government more focused on encouraging environmental land management. The research reported here investigated whether business management practices of farmers influence financial performance, and how policy could be tailored to better meet the needs of farm businesses.
The results show that business planning and benchmarking have a positive, statistically significant, effect on financial performance, as do business size and knowledge acquisition, albeit to a lesser extent.
The research reported here is the most extensive examination, to date, of the impact of management practices on the financial performance of farms. Thus, it sends strong policy recommendations.