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Farm Business
Agricultural Matters
Calculating whether you can manage without
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<blockquote data-quote="Feldspar" data-source="post: 3388512" data-attributes="member: 386"><p>I spend most of my time thinking about the crop growing part of the business. Sadly, it is the time spent pursuing energy and housing development opportunities that has given by far and away the highest differences to the bottom line. With tightening margins land values would even more increasingly reflect real estate and tax avoidance potential rather than agricultural productive capacity (assuming they do not fall dramatically), we would end up spending more time making sure that we were investigating all of these other areas. For example, we have been too slow to pick up on the residential development opportunities that are presented with the absence of local plans in some areas. Had more attention been paid in this direction, we would probably be mid-way through a planning application rather that just starting a few.</p><p></p><p>On the arable side, I see Mid-Tier as a good hedge against a turbulent transition period. Depending on the speed with which subsidies may or may not be removed, it will act as a bridge. It will also allow the most marginal land (far away from main base, high black-grass burden, or awkward areas / small fields) to be taken out of production in a profitable way.</p></blockquote><p></p>
[QUOTE="Feldspar, post: 3388512, member: 386"] I spend most of my time thinking about the crop growing part of the business. Sadly, it is the time spent pursuing energy and housing development opportunities that has given by far and away the highest differences to the bottom line. With tightening margins land values would even more increasingly reflect real estate and tax avoidance potential rather than agricultural productive capacity (assuming they do not fall dramatically), we would end up spending more time making sure that we were investigating all of these other areas. For example, we have been too slow to pick up on the residential development opportunities that are presented with the absence of local plans in some areas. Had more attention been paid in this direction, we would probably be mid-way through a planning application rather that just starting a few. On the arable side, I see Mid-Tier as a good hedge against a turbulent transition period. Depending on the speed with which subsidies may or may not be removed, it will act as a bridge. It will also allow the most marginal land (far away from main base, high black-grass burden, or awkward areas / small fields) to be taken out of production in a profitable way. [/QUOTE]
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