Harry Edwards (FCG WhiteAvon)

This is part of a series of articles featuring cost focus and control on our clients’ farms. At times of low commodities prices, cost control is, of course, a really important area and should be seen as a cultural way to approach farming, rather than reacting to low prices by trying to slash costs.

Professional advisers play an important role in modern farm businesses, helping to reduce risk, improve decisions, and identify opportunities. But fees for accountants, consultants, solicitors, vets, agronomists and other specialists can also become a significant overhead if they are not reviewed regularly.

With margins and cashflow under pressure, now is a good time to ask whether each professional relationship is still delivering the right support for the business as it operates today.

The aim is not simply to find the cheapest adviser. The better question is whether the service provides clear value for money.

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A simple annual review can start with five questions for each adviser:

The final question is often the most revealing. Long-standing relationships matter, but they should not continue automatically without a clear reason.

It is also worth checking whether advisers are duplicating work, whether services could be delivered more efficiently, and whether the advice is proactive rather than simply reactive.

Review what is included in your accountancy and consultancy fees. Annual accounts, tax returns, VAT, payroll, management information, benchmarking, grant support, succession planning and strategic advice may all sit within these relationships.

Ask whether you are using the advice well, whether it is helping the business make better decisions, and whether the service still reflects what the farm needs now. Be specific and try to quantify the financial impact the advice has had on the business.

Planning and legal costs can quickly build up, particularly where a farm is developing, diversifying, restructuring or dealing with tenancy, partnership or succession matters.

Before work begins, be clear on the likely total cost, what is included, who will do the work, what information is needed, and whether other advisers can help avoid duplication.

For cropping and livestock businesses, review the wider value of agronomy and veterinary support rather than looking only at the annual fee.

Good advice should improve margins, reduce unnecessary input costs, prevent problems and support better day-to-day decisions. A slightly higher fee may still represent strong value if it improves performance or avoids costly mistakes.

One of the most useful parts of a professional fee review is looking at the adviser team as a whole. On a diversification or development project, for example, an accountant, consultant, solicitor and planning adviser may all be involved.

If they are not communicating, the business may pay more than once for the same information to be gathered, reviewed or presented. Coordinating advisers can reduce duplication and make the advice more joined up.

A review may lead to a lower fee, a better-defined scope of work, or a different adviser relationship altogether. The important point is to understand what the business needs and whether the current service still fits.

Perhaps the most useful question is: knowing what we know today, would we appoint this adviser again?

If the answer is yes, be clear why. If the answer is no, understand what has changed. If the answer is “probably”, it may be time for an open conversation about what support the business needs going forward.

Professional advisers should not simply be viewed as another farm overhead. The right adviser can save money, reduce risk, improve decision-making and provide valuable support when the business is facing important choices.

The objective of an annual professional fee review should therefore be value for money, not simply cost reduction. A £2,000 adviser who identifies a £20,000 saving, avoids a costly mistake or helps unlock a significant opportunity may represent considerably better value than a £500 adviser who provides little strategic input.

With farm margins and cashflow under pressure, every professional fee should have a clear purpose. Review what you are paying, understand what you are receiving, and make sure every adviser still has a useful role in the future of the business.

If you would like to discuss this further, please contact Harry Edwards at harryedwards@fcgagric.com or your local FCG office.