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Farming Results March

 Revenues for March exceeded expectations.  We expected softness from our core business but demand and prices were robust far better than February.   We were about 7% higher than March (but did not compensate for the additional two days in the month).   Volume and prices both contributed.  In terms of volume production, it rose by 22% from February because the new high tunnels began producing, but 70% of the increase was absorbed, as planned, by our subsidiaries.   

Our subsidiaries all saw increased volumes of output with steady prices.  The overall revenue increase has been about 15% month over month which we consider abnormal, but was the result of a series of confluent events outside of our control.   We don't expect to see such an increase going forward, but the rise is permanent, so not a "one-off".   Total revenues for the farm were 14% higher, and net profits were 16% higher than in February.  Again, within the margin of our budget and plan.  The one figure that was out of the norm was an item of additional capital expenditure for lending funds to one of our subsidiaries to repay a loan called early.  The other two shareholders will repay this advance within 36 months or it will be transformed into shares.   We fully expect the loan to be repaid early.    

Overall, the farm is doing very well over the first quarter of 2024, we are surprised to be above plan in all divisions.  This is really an unexpected outcome.  There is no doubt that making our energy costs a fixed expense rather than a variable one, has a massive impact on planning.   Our farm manager and I made a bet late last year about diesel price that has paid off.  

Overall, we are very happy with the farm's performance

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