According to a recent analysis conducted by the National Farmers’ Union (NFU), the risk of low standard imports after Brexit is the greatest trade threat to the poultry sector. Continue reading Lowered standards greatest threat to poultry sector →

Many agricultural groups have responded warmly to Environment Secretary Michael Gove’s plans to replace farm subsidies with funding to support farmers to provide public benefits, including environmentally friendly practice and better access to the countryside. Continue reading Welcome for Gove vision for farming sector →

Following the announcement that “sufficient progress” had been made on the split between the UK and the European Union, farmers consider the start of trade discussions to be crucial in ensuring that the food and farming industry can thrive in a post-Brexit era. Continue reading Transition period most important →

New figures have revealed that the efficiency and competitiveness of UK agriculture, as measured on how well inputs are converted into outputs on farms, known collectively as Total Factor Productivity (TFP), fell by 2.2 per cent last year.

In 2016 the volume of inputs used remained relatively static, falling by 0.3 per cent on average across all farming sectors compared with the previous 12 months. However, the level of outputs fell by an overall average of 2.5 per cent.

According to the Department of the Environment, Food and Rural Affairs (Defra), this drop was driven by an average fall of 7.9 per cent in production on arable farms, which was, in turn, dragged down by a staggering 30 per cent fall in oilseed rape production.

The main change in inputs was fertiliser, which rose by almost 12 per cent. Other increases were in fuel, for machinery and compound feed. The area of land used to produce outputs also rose on 2015.

On other inputs, labour was down 1.1 per cent, veterinary medicine was down by 1.4 per cent and plant protection products were down by 1.5 per cent. However, seed and building maintenance input costs fell by levels closer to the overall average of 0.3 per cent.

A Defra spokesperson said that setting the figures against a longer-term picture, productivity is still on an upward trend in UK and, although there are annual fluctuations, the long-term trend is still one of “slow but steady overall improvement”. The spokesperson added that the 2.2 per cent overall fall was measured against a record high for outputs in 2015.

Despite there being record numbers of workers from the European Union in the UK, farmers are facing difficulties recruiting them, meaning that there is a severe shortage of seasonal employees. Continue reading EU workers hard to recruit →

Farmers have welcomed the £40 million grants scheme for investment in ‘cutting edge’ farm technology and equipment, with a spokesman for the National Farmers Union (NFU) saying that improving farm productivity past Brexit could have benefits that far extend beyond the farm gate. Continue reading Focus on the agri-food sector →

Farmers can become targets for fraudsters who try to relieve them of their hard-earned money at this time of year when they are receiving their Common Agricultural Policy (CAP) and Basic Payment Scheme (BPS) payments. Continue reading Farmers warned to look out for fraudsters →

Defra Secretary Michael Gove has announced that rural business owners will get a £40 million productivity boost in the form of grants that can be used by livestock, arable and horticultural farmers. Continue reading £40 million for investment in farm technology and machinery →

A ruling by the European Court of Justice (ECJ) could mean that UK farmers who were incorrectly removed from a VAT simplification scheme may be entitled to a repayment of VAT or compensation from HM Revenue & Customs (HMRC).

The Agricultural Flat-Rate Scheme (AFRS) is a method of VAT simplification whereby farmers with qualifying agricultural, forestry or fishing activities can join the scheme. Under its rules, instead of recovering VAT incurred on their underlying costs, they can receive a flat-rate compensation of four per cent to the value of their sales.

However, HMRC has “routinely withdrawn” AFRS certificates from farmers if the compensation received means that they gain a much greater net benefit than under normal VAT registration. This is apparently to “protect the revenue”.

One example of this was Shields & Sons Partnership, which was removed from the AFRS by HMRC in 2012. The business challenged HMRC’s decision before the UK’s VAT tribunal and, although the First Tier Tribunal (FTT) dismissed the appeal, the reviewing court referred the case to the ECJ.

The ECJ’s ruling was that although the European VAT Directive does allow the exclusion of ‘categories’ of farmers, the UK does not have a general discretion to remove individual farmers from AFRS where they are simply recovering more using the scheme than they would under standard VAT accounting rules.

Once the UK leaves the EU, the UK will no longer be bound by EU VAT legislation and the Government could decide to ignore the ECJ’s findings. However, in the meantime, UK farmers wrongly removed from AFRS would be entitled to a VAT refund or some other form of compensation.