Why an increase in income can drive up the tax bill at an alarming rate

It is worthwhile getting a handle on where farm profits are so that the tax position can be established

To be in tune with our finances, we need to sit down and do the sums.

Last year will be remembered as a year of upheaval with dramatic changes experienced in farm gate prices for milk, beef, and cereals, matched with a dramatic increase in prices among all major inputs. 

While official figures are not yet out, the expectation is that dairy farming will have fared best with profits up over 40% depending on the volumes tied up in fixed milk prices.