Agriculture

Sector Payment Analysis: Agriculture

This report presents a detailed analysis of payment behaviour within the Agriculture sector, drawing upon a dataset of 73 companies. The central tendency of the data suggests a payment culture that is generally moderate, yet characterised by notable variability. The average payment time stands at 37.5 days, whilst the median is slightly lower at 36 days. This close alignment between the mean and median indicates a distribution that is relatively balanced around the centre, though the standard deviation of 17.1 days reveals a significant inconsistency in how different entities manage their accounts payable. Suppliers trading within this sector must realise that while the average performance appears stable, the wide dispersion of payment times introduces an element of unpredictability to cash flow forecasting.

When we organise the data by payment speed distribution, distinct tiers of performance emerge. A significant portion of the sector demonstrates prompt payment habits, with 30 companies (41.1%) settling invoices within the 'Fast' bracket of 0-30 days. However, a considerable cluster falls into the 'Moderate' category (31-45 days), accounting for 32.9% of the sample. The interquartile range, spanning 21 days (from 26 to 47 days), further underscores this spread. It is evident that whilst the top quartile of companies specialise in efficient working capital management—paying in 26 days or less—the bottom quartile drags performance down significantly, taking 47 days or longer to settle debts.

A critical examination of the performance breakdown highlights risks that potential creditors should not overlook. Although 52.1% of invoices are paid within a standard 30-day term, the incidence of late payments is worryingly high at 28%. The data reveals a dichotomy in behaviour: at one end of the spectrum, we observe elite performers, with 11 companies paying in under 20 days and the fastest payer settling in just 11 days. Conversely, the sector harbours a 'long tail' of slow payers. Approximately 13.9% of the companies analysed take over 60 days to pay, including a critical outlier that requires 92 days. Such extreme delays amongst the poorest performers suggest that credit risk is not uniform across the sector and requires granular assessment.

Geographically, the sample is heavily skewed towards the East of England (19 companies) and the South East (10 companies), indicating that the dataset may favour regional commercial hubs. In conclusion, whilst the Agriculture sector displays a functional median payment time, the presence of a 16.4% 'Slow' cohort and a small but critical segment of companies taking over 90 days necessitates caution. Suppliers are advised to analyse the specific payment history of new clients in this sector rather than relying on industry averages, as the gap between the fastest and slowest payers is substantial. Robust credit control measures should be favoured to mitigate the risks associated with the 28% of transactions classified as late.