Agricultural Post Brexit exit Plan
Six months on since Theresa May invoked ‘Article 50 of the Treaty of European Union’ following the results of the prior referendum, and the UK still remains in a world of uncertainty with the level to which various industries will be impacted.
One consensus that has been reached, is that the Agricultural sector will indefinitely be one of the worst affected, with British Liberal Democrat politician and Former Deputy Prime Minister, Nick Clegg stating that ‘staying outside the European Union would devastate British Farming’.
Since the announcement, the pound has plummeted and import prices have risen, but the worst may be still to come, with ‘punishing tariffs’ up to 22.3% on average to be placed on the £11bn of Agricultural products sold to the EU each year, effectively pricing UK Farmers out of their biggest export market.
And all of this, without discussing the main issue of what would replace the Common Agricultural Policy (CAP) which currently provides access to £4bn of funding allocated to rural developments, and 55 percent of UK total income for farming. No UK Government is likely to subsidise at the same level, which is likely to bring about further detriment as our EU Farming counterparts still receive such assistance.
It’s no wonder Landowners and Farmers have been left in a state of confusion and worry, with Consultancy ‘Agra Europe’ suggesting that ‘land prices will crash and 90 per cent of Farmers could soon go out of business.’
So what now? Is the reality that the Agricultural sector does need to down tools and consider an exit strategy, and if so, how do they maximise the value of their assets in what has been stated as an area of decline.
Mick George Ltd, a nationwide Construction business that has unreservedly combined with Landowners up and down the country for mutual profitable benefits, has expanded its services to help overcome such issues.
Essentially the company is presenting four options for selling off land, with the degree of intervention and support that the business provides, dictating the inflation value the Landowner could ascertain at the point of sale.
If you’re looking for a quick return without making any adjustments, but just don’t know where to start then Mick George Ltd can simply be a pointer in the right direction.
But why should Landowners just sit back and accept minimal returns? Alternatively, Landowners could utilise the organisations highly experienced planning teams, Remediation or Earthworks services, negotiating skills and commercial contacts with developers, to reap higher yields.
In times of financial struggle, the investment to undertake improvements to your land might be difficult, and Mick George Ltd recognises that, which is why they’re prepared to offer this solution in return for an agreed percentage of the uplifted value of the land.
Appraisals of the land and its valuation will be evaluated at the outset of discussions, so all details remain transparent to all parties involved.
It’s not just the Agricultural sector that this scheme should benefit either. As the government is currently tasked with delivering 200,000 new homes a year until 2020, and the market for private developers fairly buoyant, Landowners in general should look to capitalise. Effectively, Mick George Ltd can action ‘option, promotion or hybrid’ agreements, traditionally recognised in this area, with any desire to improve Brownfield or Contaminated sites also handled.
Jon Stump, Finance Director at Mick George Ltd commented: ‘’Over the years we have built some fantastic relations with Landowners, primarily in relation to Aggregate extraction or reservoir installation, that has secured significant monetary benefits to a sum in excess of millions-of-pounds in some instances.’’
Stump continued: ‘’For us, the Agricultural sector and the commercial world in general, Brexit has and will continue to bring about difficulties. What is important, is how we respond and challenge these issues to return the best outcomes. We feel we can offer genuine assistance to Landowners with this provision.’’