Invest with an eye to the future, warn farm business professionals
Farmers are increasingly looking to invest in their businesses, but must do so with an eye to the future to maximise long-term profitability.
At a business seminar in Devon last week land agent Carver Knowles and accountant Old Mill Rural Services joined forces to guide forward-thinking farmers through the threats and opportunities posed by current tax and planning legislation.
“Twelve months ago we were in a very different climate,” said Mark Neason, partner at Carver Knowles. Then, the majority of projects concentrated on developing redundant buildings for tourism or commercial use. “But within the past six months we have seen more people looking to put up new agricultural buildings.”
Stronger milk and grain prices, along with onerous slurry storage proposals, were contributing to this new wave of investment, but farmers had to consider potential future uses of buildings as well as immediate need, he warned. “It’s all about adding value to the farm and your business.”
Farmers should make the most of permitted agricultural planning rights, and seek to erect buildings on off-lying or un-serviced land. Not only would these buildings address immediate needs, they would add significant capital value to the land and offer potential development opportunities in the future, said Mr Neason.
And by improving the build specification and location of new agricultural buildings, farmers could open up commercial opportunities in future years, he added.
Accountant Neil Cox said there were many ways in which farmers could constructively utilise tax and pension opportunities when planning new buildings. These included the use of a corporate partner and a Self-Invested Pension Plan to minimise tax paid and reduce build costs through pension allowances – resulting in sizeable capital benefits.
“Agriculture is moving into a period where new developments are really on the cards,” he said. “By working with professionals farmers can benefit from a land agent’s ideas and experience to get the best from the planning authority, while using an accountant to exploit tax and pension regulations to make their project both viable and sustainable.”
Old Mill Rural Services is hosting a number of business seminars in partnership with Carver Knowles, covering topics such as tax efficient investment, proposed changes to the tax regime, obtaining planning permission and maximising capital value within a business. For more information or to book a place at Taunton or Yeovil on December 5, or Shepton Mallet on December 6, please call 01749 344986.
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Notes to editors
For more information contact
Alan Stone - Marketing Manager
Tel: 01749 335007
E-mail: alan.stone@oldmillgroup.co.uk
About Old Mill Rural Services
Old Mill accountants and financial advisers employ 140 staff in three West Country offices. The Rural Services teams are headed by Partners Mike Butler (Yeovil) and Ian Sharpe (Shepton Mallet). Looking after nearly 1,000 farmers they are one of the leading specialist farm accountants, and are happy to help with any financial and tax-related enquiries from the media.