The NFU has welcomed some components in Chancellor Jeremy Hunt’s Spring Finances, however mentioned it doesn’t go far sufficient in providing stability for agricultural companies, development in meals manufacturing and decarbonising the sector.

The headline bulletins included a 2% discount in Nationwide Insurance coverage for the self-employed, whereas there was additionally an extension to agricultural property aid (APR).

NFU President Tom Bradshaw mentioned these and different elements of the funds might provide some advantages to agricultural companies, however mentioned the Chancellor has missed a possibility to ship resilience for meals producers.

“We welcome the federal government backing the NFU’s name for the extension of APR to land in Environmental Land Administration (ELM) schemes as it is going to take away a barrier of entry for quite a lot of farm companies and provides farmers extra selection about methods to use their land. However the extension of this past ELMs could have an adversarial influence on meals manufacturing and farm tenancies and we are going to work with Treasury to evaluate these implications,” he mentioned.

In addition to making use of to ELMs, the NFU understands that this aid would even be given for different environmental land use and will influence the extent of productive farmland being faraway from agricultural use. “We’ll due to this fact be wanting carefully at any influence evaluation,” it mentioned.

It warned that it might additionally incentivise house owners to take land out of farm enterprise tenancies and personal buyers to buy land to enter into environmental schemes.

“Agricultural companies are going through a difficult financial backdrop, with enter prices at persistently excessive ranges and not less than a 50% discount in direct farm cost assist due this yr. The announcement on the abolition of the Furnished Housing Letting regime is a major concern because it’s an essential supply of diversification for farm companies which underpins resilience. We might be trying to have interaction additional with Treasury on this announcement,” Mr Bradshaw mentioned.

Combined bag

Nation Land and Enterprise Affiliation President Victoria Vyvyan mentioned the affiliation was ‘happy he authorities has listened to our requires agricultural property aid to be prolonged’.

“That is welcome information and can assist farm companies ship environmental advantages in addition to meals manufacturing,” she mentioned.

“However it’s not all excellent news. Fairly than serving to the tourism sector by completely decreasing VAT to make charges internationally aggressive, the Chancellor is squeezing vacation let house owners and stifling companies that create jobs and assist the agricultural financial system.