With well-documented changes in government policy and geopolitical influences increasing input costs, many farmers will be looking at their balance sheets to find ways to add revenue or make savings.

The use of data analysis and budget scrutiny, particularly when applied across both arable and livestock enterprises, can also drive multiple incomes from what might traditionally be seen as a single output.

Data-led farm management

Several data-led farm management systems already exist – with Savills running its own platform for clients.

Suitable for farms of all sizes and scale, we typically adopt a field-by-field (rather than crop-by-crop) approach, using data sourced from at least the last five years.

Everything from field sizes, crop types and detailed input costs are recorded, alongside figures for historic and projected yields. These results are then compared to soil type and drainage reports in order to extrapolate key findings. The same principle is also extended to livestock systems, linking performance data such as growth rates, sale weights and input costs back to individual fields and forage production.

By going into granular detail we build a comprehensive picture of a farm’s performance – identifying trends and tracking yields over time.

One field – three income streams

Say, for example, hundreds of pounds have been spent on fertiliser applications for ‘Field A’ – but yields have not increased sufficiently to create a high enough margin. We can use the same data to identify other land uses that generate a greater income.

Increasingly, this includes integrating livestock and environmental schemes to maximise output. For example, a field put down to a herbal ley (a diverse mix of grasses, legumes and herbs) can attract payments through the Sustainable Farming Incentive (SFI), the government scheme that rewards environmentally beneficial land management. That same field can then be cut and baled for forage and sold locally, before being used to graze store lambs (young sheep bought in to be finished for market), effectively turning one field into three income streams.

Other options could include:

• the development of a reservoir to raise the land value (often a minimum £1,000/acre increase for farms with water availability)
• taking advantage of SFI and other grant applications by regularly reviewing gross margin and performance on an acre-by-acre basis to achieve best and highest use across the farm. This could include everything from cropping and environmental schemes through to the best locations for tracks and even land use changes, such as fencing off areas to put down to grass or integrating livestock systems more effectively
• planting new woodland through the England Woodland Creation Offer and for carbon credits which can be value guaranteed through government schemes
• the development of sites for biodiversity net gain (BNG) which can be used to sell BNG units and raise funds for further capital expenditure

In an example for a client with a large farming estate we identified options worth more than £800,000 in extra income over a three-year period – with potential to climb to circa £1m. This is a threefold rise on previous performance and represents a significant improvement on margins.

Investing in livestock tech

Alongside land use changes, investment in livestock technology is also playing a key role in improving business performance. The government’s Farming Equipment and Technology Fund (FETF) supports purchases such as mobile handling systems and electronic weighing and drafting equipment. These allow farmers to monitor livestock more accurately – whether simply ensuring animals are sold at the correct weight, or going further by using systems such as auto-dosing vaccine guns, which adjust medicine doses based on weight or age. This reduces waste in veterinary medicines, improves animal performance and lowers overall costs to the business.

Fine tuning performance

Of course, data can only do so much. You still need the skills and expertise of traditional crop husbandry, agronomy and strong livestock management to drive change and identify which improvements will be suitable. But, similar to an engine, we can fine tune performance and ensure every part of the ‘farm machine’ is working effectively and running smoothly. Starting with a detailed analysis ensures the best chance of success, and it is increasingly proven that farmers who embrace these technologies and approaches are becoming the higher performing businesses across the industry.

Further information 

Contact Tim Frost and Jamie Oliver