2013-05-17   facebook twitter rss
Don’t Dismiss the Benefits of Long-Term Farm Investment Plans

Farmers hit by bad weather should not be put off from investing in their long-term business plans to ensure their farms are best placed to realise the long term growth opportunities ahead.

“While last-year’s poor harvest and this year’s snow-hit planting and lambing season will have affected the short-term outlook for some, thinking about how to take advantage of farming’s long-term possibilities remains the right thing to do” says Tim Parsons Director of H&H Land and Property.

Tim Parsons

Tim Parsons

Rising global populations, increased demand for protein from developing countries and greater interest in UK sourcing and traceability in the wake of the horsemeat scandal means the UK’s prospects for a strong and profitable farming sector are positive.

Maintaining a focus on the longer term opportunities that a very positive outlook for farming will bring and ensuring you have the right infrastructure and farming systems in place will be the key to achieving growth for your business from these opportunities in the future.

For example, investing in additional livestock sheds, a farm energy scheme, grain storage, increased processing or production capacity or increasing the use of precision farming technology now will help farmers be better prepared for the future.

“There are good reasons to accelerate your long-term business plans whether through investing in technology, buying more land, or investing in improved production capacity” says Tim.

“Letting the productive capacity or efficiency of your business slip because of a lack of on-going investment could put you at a disadvantage in the future - especially if supply contract requirements tighten or keeping control of your costs, through a farm energy scheme for example, becomes a real issue.”Other factors such as historically-low interest rates – the lowest since 1957 on some measures – and the Annual Investment Allowance currently at £250,000, mean that now could be a sensible time to develop parts of your farming system in a very cost effective way.

The specialist lenders, such as AMC who have been providing medium to long term loans to farming for 85 years, realise that on-going capital investment is an important component of success in many farm businesses.

HH Land

   
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