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2022-10-31-accounts

Company no. 01513190 Charity no. 281276

Progressive Farming Trust Limited Report and Audited Financial Statements 31 October 2022

Progressive Farming Trust Limited

Reference and administrative details

For the year ended 31 October 2022

Company number 01513190
Charity number 281276
Registered office and Trent Lodge
operational address Stroud Road
Cirencester
Gloucestershire
GL7 6JN
Trustees Trustees, who are also directors under company law, who served
during the year and up to the date of this report were as follows:
A M F Astor Resigned 15 December 2021
T Bennett
A Blackshaw Resigned 15 December 2021
J Dwyer
H Eldridge
R Kerr Resigned 14 December 2022
D Peck
J Pickering
S Rajani
C Watson
N Westaway
Senior management team L MacLennan - CEO
T Connett - Head of Finance (reappointed 1 November 2021)
P Jenkins - Head of Finance (resigned 12 November 2021)
W Simonson - Head of Research
A Costanzo - Deputy Head of Research (resigned 31 October 2022)
Company secretary L MacLennan
Bankers Triodos Bank
Deanery Road
Bristol
BS1 5AS
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2022

The trustees present their report and financial statements for the year ended 31 October 2022. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Objectives and activities

The Progressive Farming Trust (trading as The Organic Research Centre) (PFT) aims to combine scientific excellence with practical experience to deliver real benefits on the ground for all our futures by working, nationally and internationally, to:

Our objectives are pursued by means of a detailed programme of activities as set out in our annual business plans, with a quarterly review process, internally and by the Council of Management, used to monitor progress of activities and the outputs delivered.

The trustees have identified the following public benefits derived from the charity’s activities:

All findings of our research programmes are made available in the public domain.

PFT carries on certain other activities in addition to fundraising and administering the organisation. These include the management and administration of Agricology, which is a collaboration of 40 organisations who share their findings and provide practical information regarding sustainable farming practices, regardless of labels. It also manages and administers the Dean Organic Fund, which offers interest free loans to organic growers and farmers who may not otherwise be able to secure finance.

Achievements and performance

In 2021-22 ORC have worked on 22 research projects, collectively worth £2.2M with over 200 partners from all over Europe. We have published 18 technical reports as well as a peer-reviewed journal article and made 5 presentations at an international conference and 9 presentations at national conferences and events.

2

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2022

During the year, Agricology received sufficient funding from ORC’s fundraising efforts in order to start redevelopment work on its new website which will go live in Spring 2023. This work will improve the user experience and make site navigation (and site management) much easier. In addition to this activity Agricology continued to use its communication channels to promote the work of its 40 collaborating organisations through a range of farmer profiles, blogs and events. In addition after a one-year hiatus, Agricology returned to sponsor the Discussion Tent at Groundswell which gained over 5,000 visitors across two days.

In 2021-22, the Dean Organic Fund granted six new interest free loans with a cumulative value of £100,194 to a variety of developing businesses including market gardens, vegetable box schemes and pig and poultry businesses across the UK. These loans are in addition to the sixteen active loans which have an accumulated outstanding balance of £76,565.

In 2021-22 ORC’s own fundraising activities generated income of £393,000 from a cost of £187,403 (£203,000 income in 2020-21 from a cost of £145,554). This was achieved through a mixture of donations from individuals, trusts and foundations and major donors.

The COVID pandemic continued to cause significant impact to organisational ways of working during 2021-22. Although the team operated effectively ‘working from home’ this change to working life has resulted in the dispersal of the team to live in different parts of the country, thereby reducing its ability to meet in person. It is therefore unlikely that we will return to having all staff working in a company office environment and the organisation is finding the best way to respond to this in order to create a longer-term solution to ways of working.

Financial review

The financial performance of the charity is set out in the attached financial statements.

Total incoming resources, including income from charitable activities, was £747,132 for the year (£970,338 in 2020-21). There are two key contributing factors to this. Firstly the change in funding of Horizon Europe projects, which have previously been funded directly by the EU with payments of 40% funding in advance of the project start. However due to the complexities of Brexit, funding for these projects has now begun to be routed through UKRI, which pays quarterly in arrears. This change in funding is responsible for a shortfall of reported income of £333,000 in the 2021-22 financial year.

Secondly there was an unrealised loss on our investment portfolio of £184,906 due to the market volatility seen over the course of the past year – see ‘Investment Policy’.

The result is a net negative movement of funds of (£524,030), compared to a net negative movement of (£29,488) in the previous year. This result is disappointing given that a significant effort had been made by the team to return the business to breakeven. Total expenditure was £1,086,256 (£1,221,096 in 2020-21), however, representing continued cost savings of over £100,000.

The shortfall in income was funded from PFT’s reserves.

Sources of funding

A range of funding is utilised by PFT including restricted funding gained through project funding bids and applications to charitable trusts and major donors and unrestricted funds donated by charitable trusts and individual donors.

3

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2022

Risk factors and management

The trustees have given due consideration to the major risks to which PFT is exposed and holds a register of these. We have taken all reasonable steps to mitigate these risks. Risk assessment and management processes are in operation on an on-going basis throughout the organisation and cover all aspects of financial and non-financial performance.

The monitoring of our financial control systems and procedures and risk-management strategies is delegated to the Finance Committee, which meets quarterly and reports to the Council of Management. The major risk identified relates to failure to achieve income goals, which was unfortunately not realised this year. As a result Trustees have a programme of activity to review the organisation’s business model with the aim to ensure that it returns to breakeven in 2022-23.

Reserves policy

The charity’s reserve policy is to maintain liquid reserves equating to four months of its regular expenditure, currently £350,000 - £400,000. The charity’s total free reserves consist of the unrestricted funds held within net current assets together with the portfolio of listed investments which is held in order to generate income and support its long-term business strategies.

Investment policy

The market value of the Trust’s investments on 31 October 2022 were £861,024 (2020-21 £1,242,656).

The investment policy setting out the investment objectives, risk, liquidity and policy provides the strategic constraints within which the Trust’s finances are managed. It is reviewed annually. In summary, the investment objectives of the Trust are:

The detailed management of the investment portfolio is the responsibility of the appointed professional investment managers.

Structure, governance and management

The Progressive Farming Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19th August 1980 as amended on 11 July 2019. It is a charity and has been registered with the Charity Commission since 1980.

The company does not have a share capital. It has no subsidiary companies or legal association with other organisations. The company does work in partnership with many organisations on the delivery of projects and other charitable activities.

The PFT has a Council of Management consisting of not less than three and not more than fifteen unpaid Trustees (Directors), which sets strategy and direction and monitors performance.

4

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2022

The company is run on a day-to-day basis by a Senior Management Team led by a Chief Executive Officer, supported by a Head of Research and a Head of Finance. The Senior Management Team is responsible for implementing the plans approved by the Council on the basis of a statement of Delegated Authority.

The remuneration of the Senior Management Team is set by the Council as advised by the Remuneration Committee. The remuneration policy seeks to ensure that a) as this is a research organisation, for all staff relative pay levels compared with the Higher Education sector are maintained, and b) that for the Senior Management comparability with remuneration in other similar charities is also maintained.

Trustee recruitment and induction

The trustees (members of the Council of Management) are elected by the Members of the Progressive Farming Trust at the Annual General Meeting, with one-third retiring annually and eligible for re-election.

Recruitment of trustees is achieved through personal recommendation or utilising specialist agencies. The Council contains a broad range of farming, business, finance and organic experience, research, legal and international knowledge, and political experience linked with environmental interests.

Information is provided to help new trustees to familiarise themselves with the objectives and activities of PFT. They are also referred to the Trustee Act 2000 and relevant Charity Commission guidance.

Details of trustee and related party transactions are disclosed in note 19 to these accounts.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

▪select suitable accounting policies and then apply them consistently;

▪observe the methods and principles in the Charities SORP;

5

Progressive Farming Trust Limited

Report of the trustees

For the year ended 31 October 2022

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 8 March 2023 and signed on their behalf by

TM Bennett

Tim Bennett – Trustee and Chair

6

Independent auditors' report

To the members of

Progressive Farming Trust Limited

Opinion

We have audited the financial statements of Progressive Farming Trust Limited (the 'charity') for the year ended 31 October 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

7

Independent auditors' report

To the members of

Progressive Farming Trust Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

8

Independent auditors' report

To the members of

Progressive Farming Trust Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Testing transactions that are unusual or outside the normal course of business.

9

Independent auditors' report

To the members of

Progressive Farming Trust Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 10 March 2023

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

10

Progressive Farming Trust Limited

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 October 2022

Restricted
Note
£
Income from:
Donations and legacies
3
40,440
Charitable activities:
Research and projects
4
351,791
Information services
5
175,815
Other trading activities
6
-
Investments
-
Other:
Miscellaneous income
-
Gain on disposal of fixed assets
-
Total income
568,046
Expenditure on:
Raising funds:
Fundraising
42,124
Charitable activities:
Research and projects
473,774
Information services
92,162
Total expenditure
8
608,060
Net gains / (losses) on investments
-
Net expenditure
(40,014)
Transfers between funds
(143,362)
Net movement in funds
9
(183,376)
Reconciliation of funds:
Total funds brought forward
903,733
Total funds carried forward
720,357		 Unrestricted
£
119,493
17,247
-
15,869
26,477
-
-
179,086
145,279
181,024
151,893
478,196
(184,906)
(484,016)
143,362
(340,654)
1,271,726
931,072		 2022
Total
£
159,933
369,038
175,815
15,869
26,477
-
-
747,132
187,403
654,798
244,055
1,086,256
(184,906)
(524,030)
-
(524,030)
2,175,459
1,651,429		 2021
Total
£
203,029
475,793
42,195
5,255
23,578
2,525
217,963
970,338
145,554
865,098
210,444
1,221,096
221,270
(29,488)
-
(29,488)
2,204,947
2,175,459

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

11

Progressive Farming Trust Limited

Balance sheet

As at 31 October 2022

Note
Fixed assets
Tangible assets
12
Social investments
13
Investments
14
Current assets
Debtors
15
Current asset investments
22
Cash at bank and in hand
22
Liabilities
Creditors: amounts falling due within 1 year
16
Net current assets
Net assets
17
Funds
18
Restricted income funds
Dean Organic Fund
Other restricted funds
Unrestricted funds
General funds
Total charity funds		 £
112,288
355,308
210,690
678,286
(66,068)		 2022
£
1,428
176,759
861,024
1,039,211
612,218
1,651,429
538,848
181,509
931,072
1,651,429		 2021
£
8,319
156,647
1,242,656
1,407,622
162,411
375,186
325,458
863,055
(95,218)
767,837
2,175,459
538,848
364,885
1,271,726
2,175,459

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 8 March 2023 and signed on their behalf by

TM Bennett

Tim Bennett- trustee and chair

12

Progressive Farming Trust Limited

Statement of cash flows

As at 31 October 2022

Note
Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Dividends, interest and rents from investments
Profit on the sale of fixed assets
Decrease in stock
Decrease / (increase) in debtors
Decrease in creditors
Net cash provided used in operating activities
Cash flows from investing activities:
Proceeds from disposal of investments
Proceeds from disposal of fixed assets
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Purchase of investments
Consessionary loans repaid
Consessionary loans awarded
Net cash provided by investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 2022
£
(524,030)
7,320
184,906
(26,477)
-
-
50,408
(29,150)
(337,023)
331,057
-
26,477
(429)
(134,616)
113,662
(133,774)
202,377
(134,646)
700,644
565,998		 2021
£
(29,488)
9,687
(221,270)
(23,578)
(217,962)
375
(19,507)
(27,189)
(528,932)
251,822
631,824
23,578
(603)
(744,070)
81,653
(1,000)
243,204
(285,728)
986,372
700,644

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

13

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Progressive Farming Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

14

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

1. Accounting policies (continued)

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. Where these costs are not directly attributable to charitable activities, they have been allocated between cost of raising funds and expenditure on charitable activities on the basis of staff time as follows:

llows:
2022 2021
Raising funds: Fundraising 12.2% 9.6%
Charitable activities: Research and projects 59.1% 75.1%
Charitable activities: Information services 28.7% 15.3%

15

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

1. Accounting policies (continued)

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Fixture, fittings and equipment 33% on cost

j) Social investments

Social investments are concessionary loans made to third parties that directly further the charitable purposes of the charity. The loans are recognised as the amount paid, less cumulative repayments. They are reviewed annually for impairment.

k) Investments

Investments held at the year end are valued at the current market value at that date. Investment income from dividends is included in incoming resources while realised and unrealised losses and gains on investments are shown separately on the statement of financial activities (SOFA). Realised gains and losses are calculated on investment disposals during the year as the difference between the opening market value and the proceeds received on sale. Unrealised gains and losses are calculated on investment holdings at the year end as the difference between the closing market value and the opening market value or purchase value during the year.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Current asset investments

Current asset investments are cash held on deposit that will be used to fund social investments. Current asset investments are measured at cost.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

16

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

1. Accounting policies (continued)

p) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

q) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

r) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

s) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

17

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Research and projects
Information services
Other trading activities
Investments
Other income
Gain on disposal of fixed asset
Total income
Expenditure on:
Raising funds:
Fundraising
Charitable activities:
Research and projects
Information services
Total expenditure
Net losses on investments
Net income / (expenditure)
Transfers between funds
Net movement in funds
Income from donations and legacies
John Ellerman Foundation
Yarrow Trust
Other donations < £15k
Total		 Restricted
£
£
95,203
107,826
475,793
-
42,195
-
-
5,255
-
23,578
-
2,525
-
217,963
613,191
357,147
39,580
105,974
453,026
412,072
161,994
48,450
654,600
566,496
-
221,270
(41,409)
11,921
137,570
(137,570)
96,161
(125,649)
Restricted
£
£
40,440
-
-
30,020
-
89,473
40,440
119,493
Unrestricted
Unrestricted		 2021
Total
£
203,029
475,793
42,195
5,255
23,578
2,525
217,963
970,338
145,554
865,098
210,444
1,221,096
221,270
(29,488)
-
(29,488)
2022
Total
£
40,440
30,020
89,473
159,933

3. Income from donations and legacies

18

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

3. Income from donations and legacies (continued) Prior period comparative:

John Ellerman Foundation
Yarrow Trust
Garfield Weston
Boltini Trust
Other donations < £15k
Total		 Restricted
£
£
39,580
-
-
30,000
-
25,000
15,000
-
40,623
52,826
95,203
107,826
Unrestricted		 2021
Total
£
39,580
30,000
25,000
15,000
93,449
203,029

4. Income from charitable activities: research and projects

Defra
European Commission
The Soil Association
John Pain
UK Research and Innovation
Other project income
Consultancy
Rural Payments Agency
Campaign to Protect Rural England
Welsh European Innovation Partnership
Ekhaga Foundation
Total research and project income
Biotechnology and Biological Sciences
Research Council		 Restricted
£
£
108,386
-
92,515
-
58,667
-
50,000
-
5,419
-
36,804
-
-
17,247
-
-
-
-
-
-
-
-
-
-
351,791
17,247
Unrestricted		 2022
Total
£
108,386
92,515
58,667
50,000
5,419
36,804
17,247
-
-
-
-
-
369,038		 2021
Total
£
157,161
212,918
-
-
-
11,713
-
33,867
29,487
20,960
13,575
(3,888)
475,793

All income from research and projects in the prior period is restricted.

Negative figures in income in the prior year represent accrued income balances which had to be written back after they were found to be irrecoverable.

19

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

5. Income from charitable activities: information services

Income from charitable activities: information services
Esmée Fairbairn
Rothschild Foundation
The Soil Association
Other project income
Daylesford Foundation
Prince of Wales' Charitable Foundation
Total information services income		 2022
Total
£
80,000
54,000
9,865
31,950
-
-
175,815		 2021
Total
£
-
-
-
-
31,873
10,322
42,195

All income from information services in the current and prior period is restricted.

6. Income from other trading activities

Sponsorship
Other estate income
Total		 2022
£
14,590
1,279
15,869		 2021
£
-
5,255
5,255

All income from other trading activities in the current and prior period is unrestricted.

7. Government grants

The charitable company receives government grants, defined as funding from Defra and UK Research and Innovation, to fund charitable activities. The total value of such grants in the period ending 31 October 2022 was £113,805 (2021: £170,736). There are no unfulfilled conditions or contingencies attaching to these grants.

20

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

8. Total expenditure
Total expenditure
Staff costs (note 10)
Activity delivery costs
Office/facility operation & maintenance
Other office costs
Computing and IT support
Bank charges/interest
Insurance
Audit and accountancy
Governance costs
Legal and professional fees
Investment manager fees
Depreciation
Miscellaneous costs
Sub-total
Total expenditure
Allocation of support and governance costs		 £
59,391
4,861
-
-
-
-
-
-
-
73,758
8,096
-
-
146,106
41,297
187,403
Raising funds:
fundraising		 £
286,558
168,985
-
-
-
-
-
-
-
-
-
-
-
455,543
199,255
654,798
Charitable
activities:
research		 £
138,932
8,519
-
-
-
-
-
-
-
-
-
-
-
147,451
96,604
244,055
Charitable
activities:
information
services		 Support and
governance
costs
£
175,512
38,322
20,840
6,528
42,780
1,362
8,001
8,642
4,281
6,992
-
7,320
16,576
337,156
(337,156)
-		 2022 Total
£
660,393
220,687
20,840
6,528
42,780
1,362
8,001
8,642
4,281
80,750
8,096
7,320
16,576
1,086,256
-
1,086,256

Total governance costs were £12,921.

21

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

8. Total expenditure Prior period comparative

Prior period comparative
Staff costs (note 10)
Activity delivery costs
Office/facility operation & maintenance
Other office costs
Computing and IT support
Bank charges/interest
Insurance
Audit and accountancy
Governance costs
Legal and professional fees
Investment manager fees
Depreciation
Farm tenancy and sharefarming expenditure
Miscellaneous costs
Sub-total
Total expenditure
Allocation of support and governance costs		 £
55,217
4,990
-
-
-
-
-
-
-
36,408
9,821
-
-
-
106,436
39,118
145,554
Raising funds:
fundraising		 £
431,897
127,226
-
-
-
-
-
-
-
-
-
-
-
-
559,123
305,975
865,098
Charitable
activities:
research		 Charitable
activities:
information
services
£
88,180
59,794
-
-
-
-
-
-
-
-
-
-
-
-
147,974
62,470
210,444		 Support and
governance
costs
£
208,895
12,094
33,852
4,083
43,402
1,212
9,576
16,425
923
54,254
-
9,687
(1,800)
14,960
407,563
(407,563)
-		 2021 Total
£
784,189
204,104
33,852
4,083
43,402
1,212
9,576
16,425
923
90,662
9,821
9,687
(1,800)
14,960
1,221,096
-
1,221,096

Total governance costs were £9,563.

22

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

9. Net movement in funds

This is stated after charging:
Depreciation
Trustees' indemnity insurance
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (including VAT)		 2022
£
7,320
Nil
Nil
743
8,640		 2021
£
9,687
Nil
Nil
44
8,640

Trustees expenses comprise amounts relating to 3 trustees for travel and subsistence costs (2021: 1 trustee).

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2022
£
548,583
50,719
61,091
660,393		 2021
£
659,810
50,255
74,124
784,189

No employees earned between £60,000 and £70,000 during the year (2021: nil).

The key management personnel of the charitable company comprise the senior management team. Total employee benefits paid to the key management personnel were £226,961 (2021: £223,208).

The average staff head count during the year was:
Administration
Research / project staff
Average full-time equivalents (all staff)		 2022
No.
12.6
10.0
22.6
17.7		 2021
No.
12.0
10.3
22.3
20.5

11. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

23

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

12. Tangible fixed assets

Cost
At 1 November 2021
Additions
At 31 October 2022
Depreciation
At 1 November 2021
Charge for the year
At 31 October 2022
Net book value
At 31 October 2022
At 31 October 2021
13. Social investments
Debtor brought forward
New loans committed
Loans repaid in year
Debtor carried forward		 Fixtures,
fittings and
equipment
£
42,618
429
43,047
34,299
7,320
41,619
1,428
8,319
2022
£
156,647
133,774
(113,662)
176,759		 Total
£
42,618
429
43,047
34,299
7,320
41,619
1,428
8,319
2021
£
237,300
1,000
(81,653)
156,647

Concessionary social investment loans comprise interest-free loans of up to £25,000 made to fund the purchase of equipment, stock or similar items to enable the borrower to carry out certified or closely aligned organic/agroecological farming and/or food business activities. They are repayable in monthly installments beginning 12 months after the loan was agreed. Amounts receivable within one year is £71,826 and amounts receivable in more than one year is £104,933 (2021: £77,883 receivable within one year, £78,764 receivable in more than one year).

24

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

14. Investments

Market value at 1 November 2021
Additions
Disposals proceeds
Realised gains / (losses)
Unrealised gains / (losses)
Market value at 31 October 2022
Historic cost:		 £
1,242,656
134,616
(331,057)
(1,733)
(183,458)
861,024
882,734
Listed
investments		 2022
£
1,242,656
134,616
(331,057)
(1,733)
(183,458)
861,024
882,734		 2021
£
529,138
744,070
(251,822)
41,535
179,735
1,242,656
1,101,945

Listed investments comprise funds held by Rathbones, which are shown at the market value at the balance sheet date.

15. Debtors

Trade debtors
Accrued income
Prepayments		 2022
£
50,115
51,504
10,669
112,288		 2021
£
81,059
70,263
11,089
162,411

16. Creditors : amounts due within 1 year

Trade creditors
Accruals
Other creditors		 2022
£
9,144
34,606
22,318
66,068		 2021
£
23,645
40,735
30,838
95,218

25

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

17. Analysis of net assets between funds

Tangible fixed assets
Social investments
Investments
Net current assets
Net assets at 31 October 2022
Prior period comparative
Tangible fixed assets
Social investments
Investments
Net current assets
Net assets at 31 October 2021		 £
-
176,759
-
543,598
720,357
£
-
156,647
-
747,086
903,733
Restricted
funds
Restricted
funds		 £
1,428
-
861,024
68,620
931,072
£
8,319
-
1,242,656
20,751
1,271,726
Unrestricted
funds
Unrestricted
funds		 Total funds
£
1,428
176,759
861,024
612,218
1,651,429
Total funds
£
8,319
156,647
1,242,656
767,837
2,175,459

26

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

18. Movements in funds

Movements in funds
Restricted funds
EU funded projects
UK statutory funded projects
Foundation funded projects
Other projects
Dean Organic Fund
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds		 At 1
November
2021
£
161,080
95,343
24,450
84,012
538,848
903,733
1,271,726
1,271,726
2,175,459		 Income
£
92,515
189,137
160,524
125,870
-
568,046
179,086
179,086
747,132		 £
£
(275,010)
-
(196,047)
-
(67,919)
-
(69,084)
-
-
-
(608,060)
-
(478,196)
(184,906)
(478,196)
(184,906)
(1,086,256)
(184,906)
Net losses on
investments
Expenditure		 Transfers
between
funds
£
8,083
(87,630)
(10,970)
(52,845)
-
(143,362)
143,362
143,362
-		 At 31
October
2022
£
(13,332)
803
106,085
87,953
538,848
720,357
931,072
931,072
1,651,429

Purposes of restricted funds

EU funded projects

EU-Funded projects are part of international framework programmes (Horizon 2020, Horizon Europe) and typically are large collaborative international projects, of a 3 to 5 years duration, where typically ORC partners with more than 10 partners, both scientific and stakeholder, according to a ‘multi-actor approach’, from different EU or associated countries. Such projects cover all ORC thematic areas and can be of three types: ‘Research and Innovation Action’, mostly aimed at producing original knowledge, ‘Innovation Actions’, mostly aimed at bringing innovative practices closer to market readiness on an international scale, and ‘Thematic Network’, mostly focused on knowledge exchange on an international scale.

27

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

18. Movements in funds (continued)

UK statutory funded projects

UK Statutory projects are a wide array of activities funded directly or indirectly by UK governmental bodies and typically are aimed at a regional-to-national scale. They can take the shape of high-consultancy contracts, like with DEFRA or other public and private bodies, or subcontracts to a university or public research centre (like those funded by the UKRI), or grants from various organisations and programmes e.g. the Innovative Farmers programme.

Foundation funded projects

Foundation funded projects support specific programmes of work identified by the research team with funding sourced from Foundations. Projects cover a variety of activities such as the Systems Health project, a project to promote health at all levels in the farming system, funded by Ekhaga Foundation.

Other projects

This funding stream covers a variety of programmes of work identified by ORC whereby funding is received from multiple sources including individuals. This covers internal programmes such as the development of our fundraising capabilities and the implementation of a CRM system supported by The John Ellerman Foundation, or improving our community engagement which has been supported by the Boltini Trust.

Dean Organic Fund

The Dean Organic Fund was established following a major bequest from the late Jennie Bone to ORC, along with the transfer of funds from the former Dean Organic Trust which she established in 1993. Her idea was to support the conservation of wildlife in the farmed environment by providing interest free loans to organic producers. ORC is committed to continuing this process and launched a third round of funding in January 2022.

Transfers between funds

Transfers from unrestricted funds to restricted funds represent the coverage of restricted overspends with general funds.

Fund misallocations in previous years have been rectified in these accounts by transfers from restricted funds to unrestricted funds.

Restricted funds in deficit

Restricted fund balances in deficit represent recoverable overspends in this financial year on restricted projects, to be cleared by the receipt of income in 2022-23.

28

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

18. Movements in funds (continued) - prior period comparative

Movements in funds (continued) - prior period comparative
Restricted funds
EU Funding
UK Statutory Funding
Foundation funding
Other projects
Dean Organic Fund
Total restricted funds
Unrestricted funds
Designated funds:
M Langman: Food quality and health bequest
Farm and Food Society: Animal health and welfare
Total designated funds
General funds
Total unrestricted funds
Total funds		 At 1
November
2020
£
166,556
33,802
34,404
33,962
538,848
807,572
38,305
44,101
82,406
1,314,969
1,397,375
2,204,947		 Income
£
212,918
260,550
38,307
101,416
-
613,191
-
-
-
357,147
357,147
970,338		 £
(254,813)
(205,701)
(141,277)
(52,809)
-
(654,600)
-
-
-
(566,496)
(566,496)
(1,221,096)
Expenditure		 £
-
-
-
-
-
-
-
-
-
221,270
221,270
221,270
Net gains on
investments		 £
36,419
6,692
93,016
1,443
-
137,570
(38,305)
(44,101)
(82,406)
(55,164)
(137,570)
-
Transfers
between
funds		 At 31
October
2021
£
161,080
95,343
24,450
84,012
538,848
903,733
-
-
-
1,271,726
1,271,726
2,175,459

29

Progressive Farming Trust Limited

Notes to the financial statements

For the year ended 31 October 2022

19. Related party transactions

Trustees donated a total of £1,643 (2021: £10,160) (of which, all were travel and subsistence expenses not claimed (2021: £160)) to Organic Research Centre during the year.

In the prior year, Organic Research Centre paid £10,290 in membership fees to IFOAM during the year. Roger Kerr was a trustee of Organic Research Centre (until 14 December 2022) and IFOAM.

20. Financial instruments at fair value

Financial instruments at fair value
2022 2021
£ £
Financial assets measured at fair value 861,024 1,242,656

Financial assets measured at fair value comprise listed investments.

21. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years		 2022
£
37,200
43,400
80,600		 2021
£
37,200
80,600
117,800

22. Cash and cash equivalents

Current asset investments
Cash at bank
Total		 2022
£
355,308
210,690
565,998		 2021
£
375,186
325,458
700,644

30