Introduction
Research has found that implementing new farming technology will help reduce the productivity gap between the UK and countries with much higher productivity in agriculture such as Australia and the USA. Future funding is critical if UK livestock farmers want to implement new technologies to improve growth and productivity.
Why are farmers holding off on investing?
Recent research has found that farmers are willing to invest in new technology as they recognise the benefits the technology can make to productivity, animal welfare and reducing emissions.
However, the Social Market Foundation (SMF) recently interviewed UK farmers and the majority were deferring investing money to implement technology into their operations because of uncertainty regarding post-Brexit funding streams. In these interviews, many farmers expressed that the policy regarding post-Brexit funding streams are too complex and confusing to navigate, which makes it challenging to plan ahead and make investments.
The Think-tank found that future government policy on funding is the ‘single biggest issue in agricultural policy’ and is the most important factor in the future of technological adoption.
What will improve farmers’ confidence to invest?
Policy uncertainty remains a major barrier preventing widespread investment in technology across the agriculture sector. Further recommendations include raising more awareness about cutting-edge farming methods and providing farmers with access to key data from slaughterhouses and retailers. Implementing these measures will give farmers more confidence to invest.
How can we help?
Hawsons has a dedicated team of specialist agriculture accountants in Sheffield, Doncaster and Northampton. We know that farming isn’t just a business; it’s a way of life.
The rural and agriculture sector is a specialist sector, with unique practices and conventions, and we act for a significant number of arable farms and assist farming families in many matters specific to the sector including tax and will planning and succession planning.
We have been able to assist our farming clients in adding value to their businesses including advising on the financial and taxation consequences of property development, green technologies and capital allowance planning. In particular, we can assist in the area of capital taxes planning which is a significant issue for most farmers following the increase in land values and the availability of development opportunities.
Dan Wood
Partner
Related news
Farming Partnerships: Why the Structure Matters for Tax and Control
dw@hawsons.co.uk What is a farm partnership and why does structure matter? A farm partnership is a common structure for family-run farms in the UK. A farming partnership agreement sets out who owns the land, how profits are shared and what happens when circumstances...
Farm Accounts: Are you making the most of your Management Information?
dw@hawsons.co.uk Still only checking your books at year-end? When we speak to farming clients, there’s a pattern we see time and again. Most farms still only look at their accounts once a year, usually around tax time. Bookkeeping is something that gets done late at...
VAT on Farming: Common Mistakes Farmers make and how to Avoid them
dw@hawsons.co.uk You’ve worked hard to build something lasting. Don’t let VAT mistakes catch you out. It all starts with a small decision… You’ve just put up a new grain store. The builders have finished, you’ve got the invoice in your hand, and you’re...