Harvest Preview
Building for the future
EXPERT VIEW
Grain storage comes sharply into focus at harvest – a time when many growers consider investing in new buildings, says Matthew Berryman
I
’m never more aware of how small some of our buildings are than when I’m corn-cart-
ing.” That was a comment made recently by a farmer to me, re- flecting on the more antiquated structures in his yard.
The current system of permit- ted development rights (PDRs)
means the planning applica- tions aspects of putting up cer- tain new buildings can be simple and cheap, though. Getting per- mission can cost hundreds rath- er than thousands of pounds and applications stand a reasonably strong chance of being approved. Assuming you meet the basic
criteria and can provide the ag- ricultural justification, it’s pos- sible to put up a structure of up to 1,000 sq m under PDRs. This means now could be the perfect time to erect additional grain storage if it’s needed. The availability of cheap fi-
nance is also contributing to the trend among farmers to erect more buildings. With base rates still at a low 0.75%, banks are in- credibly keen to lend money to farmers because their asset bas- es are so strong with land values at historically high levels.
Clear strategy Of course, there’s got to be a clear business strategy to do any work, but nowadays, it’s possible to put up a basic 500 sq m gen- eral purpose structure for less than £50,000. Meanwhile, farmers have been incredibly creative at find- ing new uses for old buildings, even though their design might render them far less suitable for modern-day agriculture. An old grain store might be
entirely inappropriate for to- day’s 16-20 tonne trailers, but putting such structures to an- other makeshift – perhaps only partly effective – agricultural use could mean you’re wasting an as- set with great potential. Converting it into, say, work- shops or office units – or potential- ly even a residence – could gener- ate exciting new income streams and it might be possible to do this under PDR.
Now we know that direct production subsidies are being phased out, farmers and landown- ers will need to look more closely at all their assets to check they’re working hard enough for them.
Opportunities
If you are in the right area, there’s a massive demand for buildings for non-farming uses. There are opportunities for rental income near towns and cities, but even elsewhere, some farmers and estate owners are making a big profit from a relatively small turnover on rental income from buildings, while only generating
Wayne Tobin I Eastern Counties Area Manager I T: 07776 206708 I E:
wayne@bdcsystems.com BDC Systems Ltd I Grafton Road I Burbage I Marlborough I Wiltshire I SN8 3BA T: 01672 810851 I E:
sales@bdcsystems.com I
www.bdcsystems.com
44 ANGLIA FARMER • JUNE 2019
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