Farming Group Newsletter: Issue 22

Sticks and Carrots – No Change Then

Over recent years farmers have been incentivised periodically to change their crop choices. We have had ‘yellow years’ as Oilseed Rape coloured our landscape and ‘blue years’ when Linseed was dominant. I suspect that ‘green years’ may be the next favoured colour and I’m not just thinking of the green cover required overwinter as part of the sustainable farming incentive but the metaphorical green of solutions to problems others face with issues like excess nutrients and the need for biodiversity gain to offset development – net zero green.

The ‘stick and carrot’ approach emerged in the 19th century in racing but as new markets and products evolve governments will continue the approach of prohibitions and incentives as the net zero imperative seems dominant.

What to expect from this issue

In Issue 22 of our Farming Group Newsletter Louise Bassett revisits the development of the new subsidy regime and warns we must be alert to changes in detail introduced to better achieve government objectives. I have indulged myself by considering why, as an accountant, I might want to have specialist knowledge of farming. Andrew Band considers aspects of VAT, Steven King addresses the Structures and Buildings Allowance and Ben Kilby addresses Retirement. Price volatility is always an issue for farmers and Richard Alecock considers Futures and Forward Contracts which are becoming increasingly popular for farmers wrestling with price unpredictability as they look to protect their positions.

Click here to read Issue 22 of our Farming Group Newsletter.