**Charity registration number 1061607** **Company registration number 03336839 (England and Wales)** ## **THE REAL FARMING TRUST** # **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2022** ## **THE REAL FARMING TRUST** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|N H Read|(Appointed 30 September| |---|---|---| |||2021)| ||S Mariam|| ||J G Hartzell|| ||C H Tudge|| |**Secretary**|H Greenfield|| |**Charity number**|1061607|| |**Company number**|03336839|| |**Principal address**|27 Old Gloucester Sheet|| ||London|| ||WC1N 3AX|| |**Registered office**|27 Old Gloucester Sheet|| ||London|| ||WC1N 3AX|| |**Independent examiner**|F J Wilde FCCA MBA DChA|| ||Warner Wilde|| ||4 Marigold Drive|| ||Bisley|| ||Surrey|| ||GU24 9SF|| ## **THE REAL FARMING TRUST** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 8| |Independent examiner's report|9| |Statement of financial activities|10| |Balance sheet|11| |Statement of cash flows|12| |Notes to the financial statements|13 - 22| ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ). ## **Objectives and activities** The objects of the Trust as contained in its Articles of Association are to further such charitable purposes or objects as the Trust shall from time to time determine. ## **Purpose of the Trust** The Trust’s purpose is to encourage farming and food production practices that are economically sound, democratic, socially just, humane to animals, and promote the long-term protection of the biosphere. In practice this means supporting projects that adopt agroecological methods of farming, seek to localise supply chains, increase employment and engagement from local communities, revive local economies, protect and enhance the biosphere and through all of these elements bring about social impact on the local communities that they serve. ## **Public Benefit** The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake. During this financial year public benefits were delivered through the following principal projects: ## _The Oxford Real Farming Conference (ORFC )_ ORFC 2022 was intended to be our first hybrid conference, with 1,000 people in person in Oxford and many more online. But in early December it had to be moved to an entirely online event as the omicron variant started to surge in the UK. Despite this last-minute move, it was a great success with 3,700 delegates joining us from 91 countries around the world and over 100 sessions across a two and half day period. Once again, the interpretation collective, COATI, provided simultaneous translation offering a choice of seven languages to our global speakers. We welcomed three new partners: Schumacher College, Land in Our Names (LION) and Shared Assets. Schumacher College contributed to both the UK and global programmes, bringing together farmers in Guatemala as well spearheading fascinating talks on indigenous concepts of wellbeing and land-based spirituality. And LION and Shared Assets worked with a dedicated member of the ORFC team to programme a whole room around land justice and racial justice in food and farming. This was a huge success and will continue to be a key part of the programme for ORFC 2023. Once again, existing partners, the Soil Association and Pasture for Life organized some very strong farm practice sessions. And the Landworkers Alliance provided a great programme, with sessions on farm practice embedded in the concept of food sovereignty and other key issues. And for the global programme, we were delighted to be joined again by La Via Campesina, who organised four sessions with farmers and agricultural workers from different continents. Other global partners who joined us again were The Agroecology Fund, The ETC Group, the African Food Sovereignty Alliance (AFSA). A number of organisations from Asia, South America, Australia and New Zealand also joined us, all offering a unique perspective and connection to new voices and ideas around the world. A highlight was having members of Mutaca community in the Brazilian Amazon join us to talk about their agroforestry techniques after they’d travelled three hours by boat to reach the nearest wifi connection. - 1 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ We trialled a new technical platform for 2022 called Whova which creates a central hub for all conference delegates - whether they are attending the online or the in-person conference – to log into. This allows them to engage with each other through a discussion forum, a jobs board, self-organised virtual meetings, direct messaging and personal profiles. This decision was made as it was easy to navigate but more importantly it provided a back-up plan should we need to pull the in-person conference at the last minute due to the pandemic. While it had a few issues, it more than proved its worth, allowing us to move the entire conference online in early December relatively quickly and smoothly. In order to facilitate the growing scale of the conference, ORFC brought on more staff during the lead up to the conference and had the help of over 100 people during the event. So a core team of nine people, was joined by additional paid staff before and during the conference and nearly 70 volunteers, drawn from the UK, France, Ghana, Indonesia, Germany, Australia, USA and elsewhere! The core team is now working towards ORFC 2023 which will be our largest yet, with an estimated 8,000 delegates joining us both online and in-person. In Oxford, we have expanded across five venues and will be using a full broadcast crew to live-stream four rooms at any one time as part of our online programme. In addition, online delegates will be able to engage with 40 global sessions with speakers from around the world. These will also be available on playback for all delegates to watch in their own time. We will be working with the same tech team and interpretation team as for 2021 to ensure that the conference is accessible as possible to global delegates. And following on from an extensive review earlier this year to consider ways in which we could facilitate a more inclusive, radical space we will be offering a new bursary and ticketing system with highly subsidised tickets as well as an increased number of free tickets (bursaries) and financial support to pay for some travel, accommodation and other costs. In addition, all online tickets will remain free to anyone outside the Western Europe, the US, Canada, Australia and New Zealand. ## _ORFC in the Field Events_ The ORFC held one new event in 2021/22 aimed at delving deeper into various topics discussed at the conference each year. This two-day event was created in partnership with the venue and offered workshop style sessions for delegates to get a more hands-on experience in a more intimate setting. It was held at Wakelyns in Suffolk – the UK ’s oldest agroforestry site – in September 2022 and offered the opportunity to learn more about agroforestry and heritage grains with experts from both the farm and further afield. The two days were a great success with 70 + delegates - our maximum capacity: a broad mix of people who have remained in contact since. There were four workshops which all delegates attended run by agroforestry expert, Marina O ’Connell, heritage grains grower, John Letts, Wakelyns’ baker, Henrietta Inman and arborist, Paul Jackson and further talks by other practitioners. As well as being a learning opportunity, Wakelyns provided a perfect space for people to gather and share stories following a difficult 18 months of covid lockdown, and there was a sense of solidarity and renewed enthusiasm for their chosen vocations. Our first ORFC in the Field originally scheduled for July 2020, to be held at FarmED had once again to be postponed for a year because of Covid. We are hoping to take what is proving to be a successful and popular format further, with three events being planned for 2022/23 in different geographic locations which will continue to expand on the ORFC programme and provide the opportunity for delegates to further their knowledge, skills and connections. - 2 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## _Agroecology Communications Network (ACN)_ The ACN membership continues to grow and has been migrated on to Slack for better integration with people’s day-to-day work, and the creation of a shared ACN calendar is now available for all members to add to, which people are using. There is movement wide enthusiasm for this network to grow and become a resource that individuals, organisations and businesses can draw on. The first in-person ACN meeting was held in Bristol on 1st March 2022 where ideas for its development were discussed. Suggestions included a shared image library, a shared Zoom account, media and digital storytelling training etc. We are also talking to organisations about the idea of a 3-month communications traineeship, which would bring in young people on an internship and move them around the movement. The next event is planned for September 2022 in Westminster, exploring how communications professionals can communicate better with policy makers and parliamentarians. ## _Ready, Health , Eat_ The three-year programme funded by The National Lottery Community Fund (TNLCF) began in March 2020 and employs one part time member of staff within RFT. The aim of the programme is to bring together a number of community food organisations to trial different ideas for improving the nutritional value of the cooked food eaten by the most vulnerable groups in their community. Between them, the partners are providing nutritionally balanced meals created specifically for people who attend various support groups and food banks as well as home deliveries to vulnerable people unable to leave their home. Beneficiaries include adults with learning difficulties, people at risk of homelessness, refugees and families on low incomes. The programme is managed by the RFT with four delivery partner organisations (NOW in Belfast, Cyrenians in Edinburgh, OrganicLea in London and Brighton and Hove Food Partnership) and Coventry University’s Centre for Agroecology, Water and Resilience is the social impact assessment partner. Working in partnership has enabled the organisations to share innovations and good practice. In the first year of the project, Covid saw the partners focus on a large-scale emergency food response and RFT secured extra funding for them to do so. In 2021/22 they have been able to return their focus to the original intentions for the programme. By the end of the second year, they had trained over 100 vulnerable people in how to cook healthy food and 40 of these had found employment, mostly in catering. We have provided over half a million meals to people experiencing food insecurity. The projects have used 255 tonnes of waste food. RFT has enabled the partners to link up with farms and source local food in some cases but we have learnt that a great many people in the UK are reliant on surplus food for their nutrition. The RHE partners are not buying very much food from local or agroecological farms because projects like these buy very little food of any kind. We have therefore focused on how to provide nutritious food in socially valuable settings using surplus food. There are many practical obstacles in doing so and RHE will have good practice models to share which are currently being evaluated and written up by CAWR. The partners are seeing sharp increases in demand for food support and we anticipate ongoing interest in good practice. RFT has learnt about the social benefits of food projects of this kind. People presenting with food insecurity invariably face multiple other life challenges and the social benefits of participation are valued as well as the food itself. - 3 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## _Loans for Enlightened Agriculture Programme (LEAP)_ Between January 2019 and end of March 2022, LEAP has received 123 expressions of interest representing over £5.1m in funds. We invited 27 of those to make a full application. 19 were approved to move forward to Round 2, which sees them receive investment readiness support and mentoring. This mentoring is a key part of the programme, with applicants receiving between £5-10k worth of tailored advice and support from specialist mentors most commonly in the critical areas of governance, business planning, financial forecasting, and social impact planning. The total funds drawn down or in the pipeline at 31st March 2022 are £810,750 which represents around 76% of LEAP’s available capital. LEAP approved its first investments in September 2019 to the Apricot Centre and Glasgow Locavore. Since then, we have supported mushroom growers, care farms, food waste cafés, box schemes, micro-dairies and everything in between, including investments into Edfords Care Farm, Sole of Discretion, Goonown Growers, Gwendraeth Organics, Earthlight Herbs, Soul Farm, Tyddyn Teg, Magic Hat Café, Regather, Hempen, Southern Roots Organics, Stroud Micro Dairy, Middle Ground Growers, Goodery and GroCycle. This has enabled them to invest in their businesses in a multitude of ways – from new polytunnels, packing sheds, delivery vehicles, tools and machinery to websites, IT and new members of staff. LEAP finishes at the end of 2022, but plans to continue are being developed. ## _Social impact toolkit development_ During the year we worked with eight LEAP investees to help them explore their social impact. We worked with them to dig into what their social impact mission is and how and in what ways they hope to deliver it over the term of their loan. We used different quantitative and qualitative tools (surveys, focus groups and one to one conversations) to assess their impact on customers, volunteers and staff. A number of themes emerged from this work including what the “community” is that is engaged with these enterprises and how they relate to the place and community in which they are situated. Our work also raised questions around to what extent community food businesses should be responsible for addressing issues relating to social inequity. Whilst the social mission of the enterprises we have worked with is strong, their ability to fund social impact work from within their business is extremely limited given the tight margins that they operate under. This raises a bigger question around who pays for this work. We produced a report summarising our work in 2021 and the questions that it raised which we aim to publish in the summer of 2022. We hope to raise funds in the coming year to explore these questions and also undertake further development of the toolkit both in terms of exploring these issues within the indicators and developing the toolkit more as an online self-assessment tool. During 2021 we held a number of webinars with different networks (CSA Network, Open Food Network, Better Food Traders) with our research partners, Coventry University Centre for Agroecology, Water and Resilience at which we introduced and explained the toolkit and how it works. We had good feedback from these events to the concept and structure of the toolkit. The main thing that was raised as a concern was the lack of resources that individual enterprises have to monitor their social impact in this way. The need for external funding and/or support to do this is seen as a key limiting factor in terms of take up of the toolkit in the absence of any clear and direct revenue generating benefit that this work has for financially s trapped enterprises. - 4 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## _The College for Real Farming and Food Culture_ The College moved from strategic development into its ‘pilot phase’ in 2021/22. To support this phase, a College strategy and provisional work programme was developed and a College Manager recruited on 1st October 2021. To test the viability, legitimacy and relevance of the College strategy, a Dialogue was developed with agricultural and progressive educational partners and stakeholders. These included the Royal Agricultural University (RAU), Schumacher College, FarmED, Black Mountains College, CAWR, and FWAG SW. This Dialogue interrogated the College Aims, Values and Objectives at a 42 Acres retreat between 5-7th October 2021. The outcomes of that Dialogue have been fed back into the RFT and College strategies, and led to key partnerships being established with RAU and Schumacher College. Following the Dialogue, RFT and College staff met with RAU to discuss what the College could offer in terms of curriculum, research and other needs for students. During the autumn and winter of 2021/22, the College Manager and other RFT staff and Trustee organised a Dialogue on Nature Financialisation (this topic was chosen following panel discussions held at ORFC 2021 and 2022) which was held at Schumacher College on 1-3 April 2022. The outcomes of that Dialogue are being developed and will form the basis for further Dialogues and sessions at ORFC 2023. The College Manager is developing a model for the College through lessons learned during 2021/22 and beyond, and feedback from across the Real Farming movement and elsewhere. These reflections will feed into funding applications and further work to maintain the College and cement its place within RFT activities. _The All-Party Parliamentary Group on Agroecology for Sustainable Food and Farming (APPG)_ Despite the ongoing restrictions of the COVID-19 pandemic in 2021, the year started well for the APPG and we held a mini-inquiry on ‘Agroecology as a Nature-Based Solution (NbS)’ with a view to bringing the results of the inquiry to the attention of Rt Hon Alok Sharma MP, the President-in-Waiting for COP26 - due to be held in Glasgow in November 2021. Agriculture and food systems were being largely ignored (only included under ‘Nature’ on the final Saturday). Agroecology, recognised by the FAO (its 10 Elements of Agroecology Framework was developed between 2015 and 2019), and now included in the UK Agriculture Act deserved recognition. Our inquiry was widely supported, taking plenty of both written and online/in-person evidence. A report was also prepared to be delivered to Alok Sharma’s office and distributed to parliamentarians. Unfortunately, due to continued pressures on parliamentarians, we couldn’t finalise the report in time (it needed to be signed-off by all co-chairs). However, we are still hopeful we can utilise the responses and data collected for this inquiry. As a result of delays, including summer recess, we then needed to hold our AGM, and this was organised for November 2021 (to account for Party Conferences). At our AGM, we appointed several new officers – this included 2 new (cross-party) co-chairs and a range of additional vice-chairs. At the AGM we agreed a list of core policy areas for the APPG to focus on and began a series of briefing sessions – including a refresher on ‘Agroecology – the latest in policy and practice’ and a session on agroforestry. Both had external speakers, including policy experts from our supporter network and farmer practitioners. - 5 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Financial Review** The Trust’s main sources of income derive from grants, donations and income from charitable activities, mainly in the form of tickets, sponsorship and exhibition stands for the Oxford Real Farming Conference. Major (over £10,000) grants and donations received during 2021/22 included: £99,989 from the Esmée Fairbairn Foundation, £20,000 from the Golden Bottle Trust and £56,460 from the Ashden Trust for core costs, including the APPG, ACN and the College; £20,000 from SHED, £15,000 from a foundation known to us which has requested confidentiality, £10,000 from Be The Earth Foundation, and £10,000 from the Sheepdrove Trust for ORFC 2022; £39,000 from the Halleria Trust for LEAP on-grants and programme management costs; £12,000 from a supporter to help with the delivery of College dialogues; and £268,606 from The National Lottery Community Fund for the Ready, Healthy, Eat Programme. Total income was £685,000, compared with £733,795 in 2020/21, with £403,262 (2021: £495,624) in the form of restricted funds. The Trust has two main sources of expenditure: the grants it makes, and costs associated with its charitable activities. Total expenditure was £386,897, compared with £ 541,424 in 2020/21, resulting in a net surplus for the year of £136,787 (2021: £192,371). At 31st March 2022 the charity had total net assets of £560,826 (2021: £424,039), of which £285,510 (2021: £269,145) was held as restricted funds and £275,316 (2021: £154,894) as unrestricted funds. ## **Reserves Policy** The Board of Trustees has examined the organisation’s requirements for reserves in light of the main risks to which it may be exposed. It has established a policy whereby the unrestricted funds not committed should ideally be between three- and six-months’ worth of expenditure on unrestricted charitable activities. The total unrestricted funds at 31 March 2022 were £275,316, compared with £154,894 at 31 st March 2021. Total expenditure on unrestricted charitable activities to 31 March 2022 was £161,316. Our current reserves therefore represent over 12-months’ worth of expenditure. This has increased during the year due to core cost funding received from the Esmée Fairbairn Foundation, and we expect this to reduce over the next 12-18 months. Reserves are needed to safeguard the work of the Real Farming Trust, and the Board of Trustees is confident that at this level they would be able to continue the main core services in the event of a significant drop in funding. The reserves policy will be reviewed by the Trustees every year, or as necessary when there are significant changes to the organisation’s activities. The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. - 6 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Strategic Plan and Future Priorities** The vision of the RFT is simple: “ **good food for everyone, forever** ”. We set out how we will work towards our vision in our 2021-2024 Strategic Plan which was approved by the Board of Trustees in September 2021. That plan introduces our new Theory of Change, and sets out our main strategic priorities, including: - Creating radical, diverse and inclusive gatherings for the real food and farming movement. Through the **Oxford Real Farming Conference** , we will work to strengthen and expand networks from within and beyond the food movement, learn from each other and exchange knowledge in order to support and enable a just agroecological transition. - Bringing people together to explore and understand the transformative potential of agroecology and food sovereignty. Through the **College for Real Farming and Food Culture** , we will explore and develop the ideas that are needed to underpin Real Farming – in agricultural practice, economics, political organisation, science, moral philosophy and metaphysics (i.e., what should we be trying to do and why?). We will be an advocate for change and will provide a space for people to collaborate and share ideas. - Funding and supporting real food and farming businesses that are economically sound, socially just and protect the biosphere. We will grow and develop the **Loans for Enlightened Agriculture Programme** and other initiatives that help with access to finance and land. - Integrating food citizenship throughout all of our areas of work. We will use the next period in our development to proactively seek out and engage with different groups of food citizens from those we have worked with in the past, develop new programmes of work in support of this and embed **Food Citizenship** across all of our activities and programmes. - Promoting the importance and value of adopting agroecological approaches to food and farming in UK policy. We do this as the Secretariat of the **APPG on Agroecology for Sustainable Food and Farming** , and by engaging with our partners on policy campaigns. - Encouraging and supporting social enterprises and community food businesses, policy makers and campaigners to take social impact seriously. We will do this through educating and encouraging others to use the metrics and processes of the **Social Impact Toolkit** developed in partnership with CAWR. We will continue to build and refine the Social Impact Toolkit based on user feedback and engagement both within and outside of RFT programmes. We will also build relationships and work in partnership with other organisations both within and outside the food sector who are also developing impact measurements. This work is as much about showing what impact community food businesses are not having as about what impact they are having. Only by understanding and honestly reflecting on what we are and are not doing can the sector truly provide good food for everyone, forever. - Amplifying the voices of the agroecology movement. We will continue to develop and grow the **Agroecology Communications Network** , connecting people working in communications across the food and farming movement and exploring how we can better support each other, sharing news and campaigns and bringing people together to work towards shared goals, to have a bigger collective impact. - **Developing organisational capacity within RFT** : We will invest time and resources into the RFT, ensuring that the governance, organisation structure, people and processes are fit for purpose and able to deliver this strategic plan. Progress against our strategic plan is reviewed quarterly at Trustee meetings, and specific goals and objectives for the year ahead are made each year in our annual Spring Strategic Planning retreat, which all staff members attend. - 7 - ## **THE REAL FARMING TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Governance and Management** The Real Farming Trust is a Company Limited by Guarantee and a registered charity and is governed by its Articles of Association which set out the powers and objects of the organisation. The non-executive directors of the company are also the trustees of the charity. Trustees have control of the organisation, its funds and assets, and are responsible for overall strategic and operational management. Board meetings are held quarterly. The trustees have delegated the day-to-day management of the organisation to the Senior Management Team (SMT) and decisions on social investments to the LEAP Investment Committee. Trustees are recruited from the wide network of people and organisations who support the aims and activities of the Trust. The Trust is a member of Oxfordshire Community and Voluntary Action, which provides guidance and any necessary training for Trustees. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: N H Read (Appointed 30 September 2021) S Mariam J G Hartzell C H Tudge M R Franklin (Resigned 11 December 2021) Members of the Trust guarantee to contribute an amount not exceeding £1 to the assets of the Trust in the event of a winding up. The total number of such guarantees at 31st March 2022 was three. Members of the Board of Directors have no beneficial interest in the Trust. The trustees' r eport was approved by the Board of Trustees. .............................. J G Hartzell **Trustee** Date: ............................................. 14th September 2022 - 8 - THE REAL FARMING TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE REAL FARMING TRUST I report to the tnistees on my examlnakn of th8 finandal statements ofThe Real Farnilng Tru8t (the trust) for the year ended 31 MarGh 2022. Rosponslbllltlo• and bas1• ol roport As the trustees of the trust {and also Its dlrectors for the purposes of company Lqw) you arn r88ponsibl6 for thè prep8ra￿On of tho fin8n¢Lg1 statsmonts in ac¢ordanco with the requirements of the Companies Act 2006 (the 2006 Acti. Havlng 8allsfiod my80lf that the finan¢lal ¥1o1gments of tho trus1 are not requlrod lo be audlted under Part 16 of thg 2006 Act and are ellgible for Independent examSna￿0n. I report In r88pect of my examlnatk)n of the trust's nanclal 8t8lemants carrled out under Sed(￿ 145 of the Charlbes Act 2011 {th8 2011 Act). In carrylng out my examina￿On I have folowed all the apF4icabl8 D￿eCtIonS glven by Charfty ConNnl88lon under s￿￿On 145(51 Ib) of the 2011 Act. Indop8nd8nt •x•mln•es st•tsm•nt Slncg the trust's gross Income exceeded £250.000 your &x8mlner rkw8t b8 a m8mb8r of a body Il$tsd In 8o¢tlon 145 of the 2011 A¢t, l ¢onfimi that l am qualifled to undertake the examlnation bgcau88 l am e member of the Assoctation of Chartered Carufied Accountants. whlth18 one 01 tho li8t•d bodlo5. I have completed my examination. l ¢onfirm that no matters have come to my attentlon In c4)mecllon wllh the ¢xamlnatlon givlng mo cause to believe that in any matorial re8P8Ct'. accounung records were not kept In respect ol the trust as requlred by 80¢1kn 386 ofth• 2006 Act: or the flnanclal ststements do not accord wlth those re¢tyd$'. or tho finandal 8tstem6nts do not wlth tho ac￿UntIng requlrements of 88Ctlon 396 of the 2￿8 Act other than any requlrement that the accounts glve a true and fair viaw which is not a matter ￿n8￿￿er9d a8 part of an indopond¢nl exaryination; or tho flnanGld stalgmenls have not been prep8red In accNdanc8 wllh tho method$ and prlndplg9 of the Stalgmenl of Recommended Pracuce for acccMJnt6ng and rgportlng by charllies 8ppllcable to charllle8 preparing their a¢¢ounts in a¢c**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
161,704
403,012
Charitable activities
**4**
102,289
250
Investments
**5**
17,745
-
**Total income**
281,738
403,262
**Expenditure on:**
Charitable activities
**6**
161,316
386,897
**Net income for the year/**
**Net movement in funds**
120,422
16,365
Fund balances at 1 April 2021
154,894
269,145
**Fund balances at 31 March**
**2022**
275,316
285,510|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
564,716
110,344
495,624
102,539
119,624
-
17,745
8,203
-
685,000
238,171
495,624
548,213
142,014
399,410
136,787
96,157
96,214
424,039
58,737
172,931
560,826
154,894
269,145|**Total**
**2021**
**£**
605,968
119,624
8,203
733,795
541,424
192,371
231,668
424,039| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 10 - ## **THE REAL FARMING TRUST** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**Notes**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Creditors: amounts falling due after**
**more than one year**
**14**
**Net assets**
**Income funds**
Restricted funds
**15**
Unrestricted funds|**2022**
**£**
**£**
404,592
577,775
982,367
(73,476)
908,891
(348,065)
560,826
285,510
275,316
560,826|**2021**
**£**
**£**
334,323
430,553
764,876
(45,636)
719,240
(295,201)
424,039
269,145
154,894
424,039| |---|---|---| The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 14th September 2022 The financial statements were approved by the Trustees on ......................... .............................. J G Hartzell **Trustee** ## **Company registration number 03336839** - 11 - ## **THE REAL FARMING TRUST** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**18**
**Investing activities**
Proceeds from social investment loans
received
Repayment ofsocial investment loans
received
Investment income received
**Net cash used in investing activities**
**Financing activities**
Proceeds of new social investment loans made
Repayment of social investment loans made
**Net cash generated from financing**
**activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
-
(73,551)
17,745
-
52,864|**2021**
**£**
**£**
**£**
150,164
180,212
(170,162)
-
8,203
(55,806)
(161,959)
152,176
-
52,864
152,176
147,222
170,429
430,553
260,124
577,775
430,553| |---|---|---| - 12 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** The Real Farming Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 27 Old Gloucester Sheet, London, WC1N 3AX. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the trust's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the trust . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust. ## **1.4 Income** Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 13 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. ## **1.6 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.7 Financial instruments** The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the trust 's balance sheet when the trust becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the trust ’s contractual obligations expire or are discharged or cancelled. - 14 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **1.8 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.9 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Critical accounting estimates and judgements** In the application of the trust’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** ||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total| |---|---|---|---|---|---|---| ||**funds**|**funds**||funds|funds|| ||**2022**|**2022**|**2022**|2021|2021|2021| ||**£**|**£**|**£**|£|£|£| |Grants and donations|161,704|403,012|564,716|110,344|495,624|605,968| - 15 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **4 Charitable activities** |Conference & exhibition fees
Conference sponsorship
Other income
Analysis by fund
Unrestricted funds
Restricted funds|**2022**
**£**
85,819
14,500
2,220
102,539
102,289
250
102,539|**2021**
**£**
96,635
22,989
-
119,624
119,624
-
119,624| |---|---|---| ## **5 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Interest receivable|17,745|8,203| - 16 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **6 Charitable activities** |Staff costs
Project delivery
Travel & accommodation
Conference catering
Grant funding of activities (see note 7)
Share of support costs (see note 8)
Share of governance costs (see note 8)
**Analysis by fund**
Unrestricted funds
Restricted funds
**7**
**Grants payable**
The Now Project
Brighton & Hove Food Partnership
Cyrenians
Organic Lea
Locavore
Soul Farm Produce
Tyddyn Teg
Magdalene Herbs
Pasture-fed Livestock Association
Sole of Discretion
Goonown Growers
Fungi Futures CIC
LESS CIC
Other|**2022**
**£**
192,761
77,185
14,944
2,844
287,734
232,915
20,138
7,426
548,213
161,316
386,897
548,213
**2022**
**£**
48,913
54,086
48,823
53,170
-
-
10,800
-
-
5,940
4,860
1,500
1,500
3,323
232,915|**2021**
**£**
99,091
149,170
1,482
-
249,743
276,023
8,290
7,368
541,424
142,014
399,410
541,424
2021
£
70,921
70,563
64,359
44,820
9,000
8,805
-
1,300
1,125
-
-
-
-
5,130
276,023| |---|---|---| - 17 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**8**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Office expenses &
administration
12,326
-
Rent or lease of
buildings
5,514
-
Insurance
1,350
-
Marketing
328
-
Supplies
480
-
Subscriptions
140
-
Legal and professional
-
626
Bank charges
-
241
Interest payable
-
5,059
Independent examiner
-
1,500
20,138
7,426
Analysed between
Charitable activities
20,138
7,426|**2022**
**£**
12,326
5,514
1,350
328
480
140
626
241
5,059
1,500
27,564
27,564|Support
costs
Governance
costs
£
£
6,926
-
-
-
-
-
1,102
-
125
-
137
-
-
1,242
-
486
-
4,915
-
725
8,290
7,368
8,290
7,368|2021
£
6,926
-
-
1,102
125
137
1,242
486
4,915
725
15,658
15,658| |---|---|---|---| Governance costs includes payments to the Independent Examiners of £ 1500 for preparation of the financial statements and the Independent Examination. (2021- £ 725 was for the Independent Examination only. Preparation of the financial statements was noted separately under Legal & professional ) . ## **9 Trustees** None of the trustees received any remuneration or benefits from the trust during the year. ## **10 Employees** The average monthly number of employees during the year was: |**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
5
**2022**
**£**
138,257
41,712
12,792
192,761|**2021**
**Number**
4
**2021**
**£**
92,467
3,646
2,978
99,091| |---|---|---| - 18 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **10 Employees** **(Continued)** Key Management Personnel is comprised of the Executive Director roles. The total remuneration for Key Management Personnel (including employer's IE and pension contributions) was £67,277. There were no employees whose annual remuneration was more than £60,000. |**11**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
**12**
**Loans and overdrafts**
Social Investment Loans
Payable after one year|**2022**
**£**
318
404,274
404,592
**2022**
**£**
348,065
348,065|**2021**
**£**
3,600
330,723
334,323
**2021**
**£**
295,201
295,201| |---|---|---| The loan is unsecured and bears interest at 2% per annum which is paid quarterly. Capital is repayable based on the schedule of loan repayments agreed with the recipient of each social loan, all are due by monthly instalments and scheduled to be repaid in full by 31 December 2027. ## **13 Creditors: amounts falling due within one year** |Trade creditors
Other creditors
Accruals and deferred income
**14**
**Creditors: amounts falling due after more than one year**
**Notes**
Social investment loans
**12**|**2022**
**£**
9,321
62,655
1,500
73,476
**2022**
**£**
348,065|**2021**
**£**
4,830
39,856
950
45,636
**2021**
**£**
295,201| |---|---|---| - 19 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **15 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |||**Movement**|**in funds**||**Movement**|**in funds**|| |---|---|---|---|---|---|---|---| ||**Balance at**|
**Incoming**|**Resources**|**Balance at**|
**Incoming**|**Resources**|**Balance at**| ||**1 April 2020**|
**resources**|**expended**|**1 April 2021**|
**resources**|**expended**|**31 March**| ||||||||**2022**| ||**£**|
**£**|**£**|**£**|
**£**|**£**|**£**| |All Party Parlimentary Group|||||||| |on Agroecology|5,432|
10,000|(12,608)|
2,824|
20,600|(12,675)|
10,749| |Innovation and Infrastructure|||||||| |(Power to Change)|1,508|
-|(1,508)|
-|
-|-|-| |Loans for Enlightened|||||||| |Agriculture Programme|35,092|
21,735|(37,307)|
19,520|
39,000|(45,518)|
13,002| |LEAP Mentoring (England)|31,487|
15,286|(10,749)|
35,299|
-|(19,663)|
15,636| |LEAP Mentoring (rest of UK)|15,485|
-|(7,556)|
7,929|
-|(4,366)|
3,563| |Social Impact Toolkit|113|
-|(113)|
-|
-|-|-| |FEA Other|771|
-|(771)|
-|
-|-|-| |Collaborative Learning about|||||||| |Innovative Land Strategies|5,381|
4,752|(3,948)|
6,185|
4,806|(2,256)|
8,735| |Ready, Healthy, Eat|75,056|
328,541|(207,340)|196,982|
268,856|(248,091)|217,747| |Coronavirus Community|||||||| |Support|-|
68,852|(68,852)|
-|
-|-|-| |Wildlife on Farms Dialogue|406|
-|-|406|
-|(406)|
-| |Oxford Real Farming|||||||| |Conference|1,075|
46,458|(47,533)|
-|
58,000|(49,865)|
8,135| |Routes to Market for Pasture|||||||| |for Life Certified Products|1,125|
-|(1,125)|
-|
-|-|-| |College (Martin Stanley)|-|
-|-|-|
12,000|(4,057)|
7,943| ||172,931|
495,624|(399,410)|269,145|
403,262|(386,897)|285,510| - 20 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **15 Restricted funds** ## **(Continued)** All Party Parliamentary Group on Agroecology : The charity is the Secretariat for the APPGA which promotes the importance and value of adopting agroecological approaches to food and farming in UK policy. Loans for Enlightened Agriculture Programme (LEAP) : The charity manages the Loans for Enlightened Agriculture Programme providing loans, grants and mentoring to food and farming enterprises. The programme is funded by interest received and fees charged. Additional operational funds were provided by the Esmée Fairbairn Foundation for the LEAP Programme Team which is responsible for identifying, assessing and managing applications, carrying out due diligence and making the loan and grant agreements. It will also be responsible for monitoring and reporting (financials and impacts), promoting LEAP and its impact and providing advice and support to the investees. Grants for successful applicants to LEAP are provided by the Halleria Trust. LEAP mentoring (England) : The Power to Change Foundation provided a grant to provide support and advice to LEAP investees located in England in areas such as business planning, financial forecasting, governance, and social impact measurement. LEAP mentoring (rest of UK) : The Esmée Fairbairn Foundation provided a grant to provide support and advice to LEAP investees located outside of England in areas such as business planning, financial forecasting, governance, and social impact measurement. Collaborative Learning about Innovative Land Strategies (EU Erasmus+) : This is an EU Erasmus+ funded programme and involves seven partner organisations from five EU countries: France, the Netherlands, Romania, Belgium and the UK. The programme is managed by (and payments are received via) Terre de Liens. Ready, Healthy, Eat : T his is funded by the National Lottery Community Fund and managed by the Real Farming Trust, brings together a number of community food organisations to trial different ideas for improving the nutritional value of the cooked food eaten by the most vulnerable groups in their community. The programme aimed for this food to be made by trainees who were themselves at risk of food poverty, providing them with work experience and training and a mentoring scheme to help them into further training or employment. ORFC : Grants towards the operational costs of the ORFC Global were received from the Sheepdrove Trust, Necessity, Full Circle Foundation, A Team Foundation and Be The Earth Foundation. College Dialogue (42 Acres) : Funding was received from Be the Earth Foundation to hold a College for Real Farming dialogue at 42 Acres in Somerset. This was postponed due to Coronavirus, and was eventually held in the Autumn of 2021. ## **16 Analysis of net assets between funds** ||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total| |---|---|---|---|---|---|---| ||**funds**|**funds**||funds|funds|| ||**2022**|**2022**|**2022**|2021|2021|2021| ||**£**|**£**|**£**|£|£|£| |Fund balances at 31||||||| |March 2022 are||||||| |represented by:||||||| |Current assets/||||||| |(liabilities)|623,381|285,510|908,891|719,240|-|719,240| |Long term liabilities|(348,065)|-|(348,065)|
(295,201)|-|(295,201)| ||275,316|285,510|560,826|424,039|-|424,039| - 21 - ## **THE REAL FARMING TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **17 Related party transactions** Mr H Greenfield, the spouse of one of the trustees, received remuneration of £1,240 for company secretarial services. Mrs R West, the spouse of one of the trustees, received consultancy and project management fees of £9,450. |**18**|**Cash generated from operations**||**2022**|**2021**| |---|---|---|---|---| ||||**£**|**£**| ||Surplus for the year||136,787|192,371| ||Adjustments for:|||| ||Investment income recognised in statement of financial activities||(17,745)|(8,203)| ||Movements in working capital:|||| ||Decrease in debtors||3,282|6,900| ||Increase/(decrease) in creditors||27,840|(10,856)| ||**Cash generated from operations**||150,164|180,212| |**19**|**Analysis of changes in net funds**|||| |||**At 1 April 2021**|**Cash flows**
**At 31 March 2022**|| |||**£**|**£**|**£**| ||Cash at bank and in hand|430,553|147,222|577,775| |||430,553|147,222|577,775| ||Loans falling due after more than one year|(295,201)|(52,864)|(348,065)| |||135,352|94,358|229,710| - 22 -