Farmers who are considering developing or diversifying their business in the future should start planning now, according to rural consultant Savills.
While branching out during an economic downturn may be the furthest thing from many farmers’ minds, now is actually the ideal time to get new projects underway, says Justin Lascelles, Associate Director in Savills’ Exeter office. ’If, for example, you have a range of redundant farm buildings with development potential, now is the time to be considering all the options. That way you can get planning permission so that you are ready to go when demand picks up.’
This is especially true today, as evolving legislation, markets and technological advances are widening the scope of rural land use. ’Rising food costs across the globe are stimulating intensification of farming, prompting, for example, larger indoor dairy or beef units and more broiler production. These buildings require planning permission in their own right, but may also cause smaller building complexes to become redundant from agriculture.’
Savills’ Rural Development Service, which brings together teams of experts to help landowners develop or diversify their businesses, is currently finding significant interest in renewable energy projects, says Mr Lascelles. ’Although the government is proposing to slash feed-in tariffs for large-scale solar photovoltaic schemes, smaller projects, especially roof-mounted arrays, are still financially very attractive. There may also be more support for anaerobic digestion and biomass schemes, which are particularly suitable for farmers.’
Incorporating renewable energy into diversification plans will add value in the future, and may also help landowners to obtain planning consent, he adds. ’It doesn’t matter whether you are considering developing a new farm building, converting redundant barns, creating rural housing or setting up a farm shop. All plans must be carefully thought through in an entire business context, including risks, rewards, planning and tax implications.’
Generating local support for projects is increasingly important, warns Mr Lascelles. ’The latest planning framework and localism agenda offer a great opportunity for those with well researched ideas to promote a more sustainable rural economy. But they also carry risks, whereby local people can veto an otherwise viable project. It is vital to adopt a co-ordinated approach with help from a range of experts, to optimise your chances of success.’
