Whilst our farmers continue to work increasingly hard it’s not been without plenty of troubling and uncertain times for their own businesses. Here we outline other funding options available to you.
A National Emergency
The agricultural industry has been at the forefront of
keeping our nation fed for centuries, but now more than ever consumers are
beginning to notice and buy British. Whilst our farmers continue to work
increasingly hard it’s not been without plenty of troubling and uncertain times
for their own businesses, particularly in the dairy and beef sector. According
to the AHDB, it is estimated that 5,200 dairy farmers have suffered a milk
price reduction this spring and some have had to poor milk down the drain.
We want to assure our farming clients that there are options
available to you to ease cash flow volatility – Whether that’s during COVID-19
Changes to Basic Payment Scheme Deadlines
The Basic Payment Scheme – a scheme to claim back funds for
environmental work on farms, such as countryside and environmental stewardships
has had its deadline extended. Applications were originally due between 12th
March and 15th May for farmers in England and Wales – However due to COVID-19
the government has extended the deadline to 15th June 2020. The Rural Payments
Agency (RPA) have said that they will be monitoring this closely in alignment
with the COVID-19 progressions, so it’s certainly a case of watch this space.
The sooner you can get your application in the less you will
have to worry about it!
COVID-19 Grants for Dairy Farmers
The dairy sector is the largest farming sector in the UK
with over 40 million litres of milk produced every single day – This equates to
16.85% of total agricultural output in the UK based on 2018 statistics. But we
are in tough times and the government have recognised this at the loss of pubs,
bars and restaurants.
If you are a dairy farmer who has seen income losses as a
direct result of COVID-19 then you could be eligible to apply for a grant of up
The Department for Environment, Food and Rural Affairs
(DEFRA) have announced that farmers who have lost more then 25% of their income
during April and May due to Coronavirus will be able to apply, with no set cap on
the number of farmers who will receive support.
DEFRA have been clear that this grant is vital to ensure
that farms can continue to operate under sustained production without affecting
animal welfare at any stage – Something we all take very seriously, no matter
what part of the supply chain we sit in.
This is a grant which much of the agricultural sector have
commended and one that we feel is sorely needed at this time.
Research and Development Tax Relief
For other businesses within the farming community looking to
claw back some cash – Whether directly as a result of Coronavirus or simply to
increase revenue, Research and Development (R & D) Tax Relief is something
that you should be considering.
R & D Tax Relief has been around to encourage greater
research spending to allow for greater investment into innovation. If your
company is liable for Corporation Tax (CT) then it is most common that your tax
relief will come as a deduction from your CT liability. However, if you are a
company with no CT liability to set against the deduction then payable credits
It really is worth investigating for you and your farm.
Am I Eligible?
You’re eligible as long as your work is part of a specific project directly looking to advance in science or technology. But, as this is quite a generic statement, it’s important to remember that on the application it will be important to explain how your specific project:
– Looked for an advance in science and technology
– Overcame doubt
– Could not be easily worked out by a professional in the field
If you can easily explain the above, then we would certainly advise you apply.
From a farming perspective, this means that if you are introducing
any new methodologies to optimise the performance of your crops or implementing
strategies for mitigating disease in livestock then you could and should apply.
Options Available To You
As we begin to obtain a small sense of normality, it’s important to acknowledge that there are lots of options available to you to improve your cash flow and strengthen your business, so please do not hesitate to get in touch.
We’re happy to help and look at individual cases where
support is required.
The agricultural industry has been at the forefront of keeping our nation fed for centuries, but now more than ever consumers are beginning to notice and buy British. ”