As the outcome of Brexit rumbles on, we have as a group of consultants, recently met to discuss the various diversified enterprises that are carried out on clients’ farms.

The diversity is astounding but can be broken down into utilising the land or buildings for a third party to develop a business and our clients receive a rent or profit share OR the client themselves develop a business that they establish or run.

The question I always post at an initial meeting comprises of:

• Why are you diversifying?
• What research have you carried out to date?
• Will the concept lead to a clash with your primary enterprise re: time, energy or working capital?

The questions that I ask tenant farmers invariably involves a meeting/discussion with their Landlord or Landlord’s Agent and it is vital that the succession of AHA tenancies are considered at an early stage.

Both land owners and tenants need to discuss with their accountants when considering the longer-term succession/inheritance tax and probate issues which diversification may bring.

For more information or discussion regarding diversified farm income please contact Kevin at kevinedwards@fcgagric.com or your local FCG office.