The NFU has submitted six key asks ahead of the Autumn Budget next week, including a plea for the roll-out of superfast broadband and emerging technologies such as robotics.
With one week until the Chancellor announces his forthcoming Budget (22 November), the NFU has highlighted the importance of improved fiscal measures required to ensure British farming stays productive.
The uncertainty as to what the economic and political landscape will look like in the aftermath of any Brexit settlement is poised to make the Autumn Budget seem a critical step towards a degree of certainty.
Carl Emmerson of the Institute For Fiscal Studies (IFS) says the Chancellor is in a "very difficult position" as "increasingly intense" political pressures are urging him to spend more.
The farming industry has also put increased pressure on Chancellor Philip Hammond to show support as it wrestles with mounting concerns.
'Stable and certain'
In its letter to Mr Hammond, NFU President Meurig Raymond wrote of the need for government to deliver a new domestic agricultural policy with the environment, farm productivity and volatility mitigation at its heart.
The letter also sets out a number of key fiscal recommendations for a "stable and certain" fiscal environment which encourages investment in farm businesses.
The NFU’s submission to the Chancellor contains six propositions. It calls for the need for the introduction of a Farm Infrastructure Allowance to provide relief for the depreciation cost of farm infrastructure over its useful economic lifespan.
The union also states that an exemption for agricultural buildings from any new system of Community Infrastructure Levy or Local Infrastructure Tariff contributions is needed to avoid a further decline of farm investment.
The letter goes on to urge for an improved capital allowances regime to encourage the adoption of a wider range of new technologies as a means of improving productivity.
Superfast broadband
The issue of superfast broadband was touched upon by Mr Raymond. Government has been urged to rollout better internet access alongside complete mobile phone coverage to help farm more efficiently and fully utilise emerging digital technology such as robotics and GPS.
The proposition comes after a report shows that lack of broadband in rural areas is the main reason the UK is seeing a decline in rural society.
The letter states an introduction of a UK farm management deposit scheme is needed to provide farms with the ability to better manage the impact of volatility on profits and their cash flow and enable them to maintain more consistent investment levels.
The last proposition urges the Chancellor to look into a review of trading loss restrictions to help farmers invest in restructuring their businesses.
'Ambitious future'
Mr Raymond said he wants to remind Chancellor Philip Hammond of the "significant" economic contribution farming plays in the UK, contributing £109bn to the economy.
“One week ahead of the Budget Statement, I’d like to remind the Chancellor Philip Hammond of farming’s significant economic contribution. This is on top of caring for our iconic British countryside and putting safe, affordable British food on tables across the country,” Mr Raymond said.
“In this Budget, the Chancellor has the chance to help secure a bold, ambitious future for British farming. The NFU has made the case for a number of measures which the Chancellor can harness to prepare our sector for life outside the EU.
“Brexit presents an enormous opportunity for the sector, and Government – across all departments – can help us grab it with both hands.”
