Farm Buildings - Is now the time to build? By James Attrill
While the rest of the economy is suffering recession agriculture, despite recent falls in grain prices, has not suffered to the same degree. Farm profitability has been modest for the last decade but the prospects for the next 10 years would appear to be better. Many farms have not re-invested in farm buildings in recent years, but current circumstances would suggest that now may be the time to rethink. Reasons to consider would be:
Building contractors are offering competitive rates at present due to drop off in demand
Some (not all) materials are better value
Banks are keen to lend to agricultural businesses – it is one area where they feel secure and competitive rates are still achievable
Useful capital allowances can be generated by carefully allocating elements of the build (you should consult your accountant on this)
The planning regime is still relatively friendly towards farm buildings although, especially in the AONB, full justifications are required
Even a planning permission for a farm building helps build asset values
In some cases grant aid is achievable for farm buildings where a specialist ‘value added’ need can be proven
Planning authorities continue to apply increasingly stringent planning conditions to farm buildings – for instance preventing their use in the future for B1 or B8 conversion. The number and severity of these conditions is likely to increase in future years.
2009 may well be the year to secure that permission and get some quotations.