Land Farming and Forestry

Payment Behaviour Analysis: land farming and forestry Sector

An analysis of payment practices across 73 companies within the land farming and forestry sector reveals a payment culture that tends towards moderate settlement terms, though distinct variations in credit management behaviour are evident. The data indicates an average payment time of 37.5 days against a median of 36 days. The close proximity of these two figures suggests a relatively normal distribution of payment habits, centred around a standard 'net 30' to 'net 45' framework. However, the standard deviation of 17.1 days highlights that whilst the central tendency is stable, creditors must remain aware of inconsistent practices amongst different entities within the sample.

A detailed review of the distribution demonstrates that the sector is somewhat stratified. A solid cohort of 30 companies (41.1%) specialises in prompt settlement, falling into the 'Fast' category of 0-30 days. Furthermore, performance metrics indicate that 52.1% of payments are cleared within this 30-day window. Conversely, the interquartile range—spanning from 26 to 47 days—indicates that the middle 50% of the market often extends beyond standard monthly terms. It is crucial to realise that whilst the majority favour reasonable timescales, a significant segment (32.9%) operates in the moderate 31-45 day window, suggesting that administrative delays or strategic cash flow management are common features of the sector.

The data signals potential liquidity risks for suppliers dealing with the slower end of the market. Late payments characterise 28% of the performance breakdown, and 13.9% of payments stretch beyond 60 days. The disparity between the most efficient payer (11 days) and the slowest (92 days) is stark. Specifically, the 'Critical' bracket (>90 days) contains only one company, representing 1.4% of the sample, yet the presence of 12 companies (16.4%) in the 46-60 day range suggests a creeping delay in settlement habits. Companies operating in this sector should analyse their debtor books carefully to identify partners falling into these slower quartiles.

Geographically, the analysed companies show a strong concentration in the East of England (19 companies) and the South East (10 companies), which may influence the aggregate figures. To mitigate risk, suppliers should organise their credit control processes to anticipate a 36-day cycle on average. Whilst the single critical outlier is an anomaly, the broader trend of 8.2% of companies taking between 61 and 90 days to pay warrants strict credit limits and proactive ledger management.