Red and white diesel and farming operations

Steevo

Member
Location
Gloucestershire
If I’ve got things right there hasn’t actually been many changes to the law, it’s just going to be enforced more strictly.

On the farming or not question, I think a good phrase to keep in mind is “food production and agricultural land improvement “

If you’re digging a ditch bordering an agricultural field then it’s agricultural land improvement.
If you’re digging a ditch between a road and your neighbours garden, it’s not agricultural, but if it’s to allow water away that drains off your field from upstream then it would be I imagine.

If you’re putting up a fence to contain any farm livestock at any time then I would say that’s good production.
If you’re putting up fences with horses both sides then it’s not agricultural at all.

If you’re digging footings for a new shed, agricultural or not, that is construction.
If you’re moving manure from your own stock, it’s agricultural.
If you’re moving it from a stables to spread on your land (other rules come into play here) then it’s land improvement, but if you’re moving muck from a stables to land belonging to the stables, it’s not agricultural.

There are loads of different scenarios but you just have to think about it.

The law has changed for construction and quarrying.
 
the contractor round here said that the drainage board said as you will be more expensive on white we will do half as much each year :banghead: :banghead:
Except it’s only the fuel cost that will be altering, machine costs, drivers wages etc aren’t affected by this so costs aren’t going to double............unless they want to jump on the band wagon of any old excuse to put rates up.
 
The law has changed for construction and quarrying.

Yes, it has, but we don’t need to worry about that as farmers and 100% agricultural businesses.

It’s difficult for people like @Kevtherev because he’s involved in both agricultural and construction work.

It’s not difficult to know what such contractors NEED to do, but the practicalities make things very difficult.
 

Kevtherev

Member
Location
Welshpool Powys
Yes, it has, but we don’t need to worry about that as farmers and 100% agricultural businesses.

It’s difficult for people like @Kevtherev because he’s involved in both agricultural and construction work.

It’s not difficult to know what such contractors NEED to do, but the practicalities make things very difficult.
It’s not going to be easy managing two fuels.
 

benny6910

Member
Arable Farmer
the contractor round here said that the drainage board said as you will be more expensive on white we will do half as much each year :banghead: :banghead:
I would imagine that our drainage rates will increase to compensate. We are lucky that they are very active and they do try and keep on top of things. I hope they don’t start doing less.
 

Simon Chiles

DD Moderator
New rules make it difficult for folks like me that have the only telescopic in the village and get asked to lift the odd pallet of delivery wagons for my non farming neighbours. Should be white for them jobs but would take longer to swap diesel than the 5 mins the job takes🙄
I hope to muppet that changed the rules gets a hernia moving something heavy cos there isn't a machine handy on white to move it for him!

Technically you couldn’t do those little jobs on the rules as they are, the new rules don’t change anything in this scenario. The key word in the legislation is solely, the rules say that your only entitled to use red if your agricultural machine is solely used for agricultural purposes. That means if you use it for any other purposes, even just once, it’s not entitled to use red.
 

Ali_Maxxum

Member
Location
Chepstow, Wales
A friend has ordered 10,000 litres of red which is going to be 98p. It's honestly had me in genuine tears today at how sh!t everything is getting so quickly.

Me and the old man had a discussion yesterday about how much we are going to put our prices up by as our last lot of diesel was 76p. By this morning and having other farming and contracting friends ring me throughout the day it looks as if it may be wise to decide what we are going to charge every time we have a load of diesel.

Is equine fencing agricultural? Probably technically not but it's in an agricultural field or is it a field used for leisure so anything you do in it should be on white?

Honestly who is going to police it and quite frankly with the amount of anxiety that comes with it for simply trying to get your head down and earn a crust I can see a lot of folk seriously reconsidering whether its worth it at all. We just seem to be getting f'ed from every angle at the moment.

Hopefully it will level out and come right in the end but at the moment this is one wave that just feels like we don't have a big enough surf board.
 

mo!

Member
Mixed Farmer
Location
York
A friend has ordered 10,000 litres of red which is going to be 98p. It's honestly had me in genuine tears today at how sh!t everything is getting so quickly.

Me and the old man had a discussion yesterday about how much we are going to put our prices up by as our last lot of diesel was 76p. By this morning and having other farming and contracting friends ring me throughout the day it looks as if it may be wise to decide what we are going to charge every time we have a load of diesel.

Is equine fencing agricultural? Probably technically not but it's in an agricultural field or is it a field used for leisure so anything you do in it should be on white?

Honestly who is going to police it and quite frankly with the amount of anxiety that comes with it for simply trying to get your head down and earn a crust I can see a lot of folk seriously reconsidering whether its worth it at all. We just seem to be getting f'ed from every angle at the moment.

Hopefully it will level out and come right in the end but at the moment this is one wave that just feels like we don't have a big enough surf board.
Equine is not agricultural.
 

Simon Chiles

DD Moderator
The new rules on red and white diesel use come in soon, on the 1st of April. Obviously farming has still has a concession to use red. But to what extent will some machines/operations that take place on a farm require white from now on? Quite a lot of things that happen on a farm are not purely agricultural in nature. Quite a lot are of a construction/civil engineering type - digging ditches, repairing roads & tracks, laying concrete, preparing sites, erecting buildings, even fencing possibly.

So if a farm has machines like 360 excavators, backhoes and telehandlers, should they be operating on white if the work being done is not purely agricultural? For example, one can argue that combining a field is purely agricultural, in that you can never be doing it and it not be agricultural, harvesting is a fundamental part of food production. So a combine can always be on red. Whereas digging out ditches is not in and of itself agricultural. You could be digging ditches on a construction site and therefore need white. Equally fencing in and of itself is not always agricultural, fences are erected for all manner of purposes other than farming. So when these operations take place on a farm, are they agricultural ones or not? Do the machines need red or white? Does it make a difference if the farmer is doing the work himself, or is employing contractors? One assumes that if you have a new shed erected the contractor's equipment will need to be on white. So does the same apply to the farmer erecting his own shed? How far down the rabbit hole are HMRC going to go? Are we going to see HMRC turning up and dipping machinery and fining people based on what that machine was doing at that point in time rather than where it was (ie on a farm)?

Another point as ELMS increasingly kicks in is whether environmental work counts as farming? Does topping your wild bird cover count as farming, if no food is being produced? Or drilling it for that matter? After all by definition ELMS is paying for 'public goods' not food, so is it farming any more?

I guess my point is this - has any comprehensive definition of what constitutes 'agriculture' been provided with regards to the new rules? Or are we going to face massive uncertainty for the next decade or more as HMRC push the envelope of what is and what is not allowed?

To be completely honest I’ve been out of the loop on this for a few years so might not be right on some of this however as I understand it your 360 is still entitled to use red as it comes into the special vehicle category as a digger and also comes into the category of vehicles not used on road. Here’s the extract
DD37227E-213D-4D90-8250-22AAA7BEE994.png

Under the old rules repairing farm tracks, buildings etc qualified as agricultural operations, constructing new ones didn’t.
Thirdly, regarding contractors we established that you couldn’t discriminate between farmers and contractors, ie if someone who called themselves a farmer was entitled to use red then a contractor doing the same job was equally entitled.
If you re read Notice 75 from HMRC ( it was updated in Feb 22 ) and the MOA I think there is reference to conservation in it.
 

Steevo

Member
Location
Gloucestershire
I can see a big opportunity for agricultural contractors to buy plant and hire that to farmers for farmers use only so it’s always running on red.

That will be an attractive option to farmers. If I had a 13t digger in for a week to do some ditching I would be crying if the plant hire company insist it to be run on white.

If I had an alternative I could hire from a contractor for the same or similar price and could run it on red that would be much more attractive.
 

Goweresque

Member
Location
North Wilts
The other thing is is it physically possible to swap from red to white, and not have traces of red left in the system, which are then detectable by someone dipping the tank?
 

zero

Member
Mixed Farmer
Location
Yorkshire coast
Technically you couldn’t do those little jobs on the rules as they are, the new rules don’t change anything in this scenario. The key word in the legislation is solely, the rules say that your only entitled to use red if your agricultural machine is solely used for agricultural purposes. That means if you use it for any other purposes, even just once, it’s not entitled to use red.
Think we might just have to wing it like we've always done.
 

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