Industry Eye: Time to take stock of the year ahead and have a look at the new Feed in Tariffs

The industry has benefited hugely by the weak sterling in 2009 particularly the lamb markets with prices reaching 100 per head through the Christmas period, but the general feeling is that sterling will strengthen against the euro through 2010 and this will have a knock-on effect on exports and make our products less attractive.

However, there is still a shortage of stock around and with breeding herds and flocks decreasing further, the demand will hopefully continue to outstrip supply and keep the markets buoyant. The red meat sector therefore would seem to have a good outlook for 2010 and beyond.

Interest rates are likely to increase slightly during the year but more importantly, the ability to raise funding is going to become more and more difficult.

The bank's abilities to lend money is becoming much tighter and requiring greater levels of security both from the borrower but also the banks themselves, having to put aside more cash assets to offset the loan.

The net effect is greater margins and more costly money. For those who had a torrid harvest and felt the effect of the increase in input costs through 2009, I would strongly advise spending one of these snowy days preparing a basic cashflow for the next 24 months and give it to your bank manager, particularly if you need an increase in facilities.

The more information you can provide at an early stage will make the decisions much easier and will show your lender that you have an understanding of where the business is going and how you can counteract any short increase in borrowings.

We are really excited about the introduction of Feed in Tariffs (FITs) in April and the great opportunities that will become available for land occupiers to not only produce your own power but also get paid for doing so.

With the FITs being guaranteed for 20 years, they look set to provide a source of income and a saving to your business.

Yorkshire is ideally placed to take advantage of a lot of these schemes with abundant wind and water supply but be careful over some of the claims being made on outputs; it is often unrealistic outputs that are being stated and returns on capital.

However, this is definitely the year to get involved with renewable on a micro scale and provide an income source to the farming business and protect yourself against further energy rises.

It is exciting times in the rural sector and we at George F White are continuing to expand through Yorkshire and we look forward to meeting you at some stage throughout the year.

May I wish you all a prosperous and enjoyable 2010.

Louis Fell is a partner at chartered surveyors George F. White who operate throughout Yorkshire. Contact www.georgefwhite.co.uk