With less than a week until the chancellor publishes his autumn budget, the NFU has called for a new deposit scheme for farmers to help them maintain investment levels amid Brexit instability.
The proposal was one of six propositions made to Philip Hammond.
In his letter to government, the NFU’s outgoing president Meurig Raymond set out the need for the government to deliver a new domestic agricultural policy with the environment, farm productivity and volatility mitigation at its heart.
The letter also made a number of fiscal recommendations to help ensure economic stability and encourage innovation and investment in farm businesses.
The NFU’s six proposals were as follows:
1. The introduction of Farm Infrastructure Allowance to provide relief for the depreciation cost of farm infrastructure over its lifespan.
2. An exemption for agricultural buildings from any new system of Community Infrastructure Levy or Local Infrastructure Tariff contributions to avoid a further decline of farm investment.
3. An improved capital allowances regime to encourage the adoption of more new technologies and improve productivity.
4. Rolling out superfast broadband and providing complete mobile phone coverage to help farms make the most of emerging technologies such as robotics and GPS.
5. The introduction of a UK farm management deposit scheme to allow farms to better manage cash flow volatility and maintain more consistent levels of investment.
6. A review of trading loss restrictions to help farmers invest in restructuring their businesses.
Raymond said: “In this budget, the chancellor has the chance to help secure a bold, ambitious future for British farming. The NFU has made the case for a number of measures, which the chancellor can harness to prepare our sector for life outside the EU.
“Brexit presents an enormous opportunity for the sector, and government – across all departments – can help us grab it with both hands.”
He added: “British farming meets 61 per cent of the nation’s food needs and forms the bedrock of the UK food and drink sector, which contributes £109 billion to the nation’s economy and provides 3.8 million jobs.
“One week ahead of the budget statement, I’d like to remind the chancellor Philip Hammond of farming’s significant economic contribution.”
