Budget for the Henden Estate 2018/19

Away from the dairy business we have the general estate management business.  This is focused on maintaining the estate so that it looks attractive and does its bit for wildlife and the environment.  Inevitably this business is loss making, but this loss is carried in the hope that, in keeping the estate in good condition, so its environmental and monetary value will increase over time.

For the year we estimate we will lose £53,000 before depreciation.  This should be put in context because the cost of maintaining the Estate can be considered as investing in improving the land.  Whilst our land is not of the highest quality it is nevertheless valuable and its price per acreage continues to increase. In very simple terms one can say that this investment equates to between 1% and 2% of the potential value of our land:  agricultural, woodland and amenity land.

Non-dairy income

We receive income from a range of sources and in 2018/19 we have budgeted £37,000.

Rural Payments subsidy - a significant source of income is the annual Rural Payment cheque that we receive courtesy of the European Union, usually just after the New Year.  This is a subsidy, which is declining in value over time.  We are budgeting receipt of £25,000 in the coming year.  This represents less than 2.3% of our forecasted total income for the estate.

Grants - occasionally we win grants to help us finance some specific work.  This year we expect to receive no grants.

Sale of wood as we are coppicing our woods we are selling an increasing amount of our wood.  Sales of £12,000 are expected

Property rental - we charge our staff a small rental for the properties they occupy and will rent one of the cottages commerically.  Income of £3,000 has been budgeted.

Other incomethis includes equipment sales and miscellaneous income.

Non-dairy costs

We are budgeting £90,000 of costs for 2018/19, of which £44,000 is accounted for by labour and related costs.  A further £23,000 is accounted for by Property costs, including the refubishment of boiler systems in all of the farm houses,