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Farmers shouldn’t feel guilty for retiring, says Old Mill
armers have a great opportunity to retire following Defra’s announcement of the Lump Sum Exit Scheme and shouldn’t feel guilty for doing so.
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According to Catherine Vickery, associate director at Old Mill rural accountants, now is a prime opportunity to start thinking about retirement for a number of reasons. “This is an opportunity for farmers, particularly if they have no one to pass the business on to.” Inheritance tax (IHT) can be a barrier to retirement for some farmers but there are ways to lock in the tax benefits. “Farmers genuinely don’t have to keep farming until the day they die to be able to protect the family from IHT,” explains Ms Vickery.
The Lump Sum Exit Scheme will offer up to £100,000 to farmers who want to retire, based on the area payments they would have received until the end of the transition period in 2027.
“This means now is a great time to look at the potential benefits and tie it in with retirement plans. At present, capital gains tax is as low as 10%, providing a great opportunity to pass on assets, but at some point those rates are going to go up.” Farmers should think about where they want to be in the next five years, she advises. “Do you still want to be farming the same way you are now? What if you start to struggle physically? I think that’s an important aspect to be considering.” Retirement can also help the next generation. “It can enable farming families to help their children financially and see the impact it has on them – it’s called giving with a warm hand, rather than waiting until death to pass over the
money.”
But don’t leave yourself short of money, warns Ms Vickery. “When I’m doing IHT planning and looking at gifting to the next generation the last thing I want to do is leave the parents short of money. I want to make sure they have the means to look after themselves for the rest of their lives. “Whether that’s investing in assets which will generate a strong income, living off the capital or other pension planning - if there is a little bit of lead time there are steps we can put in place. We can put a bit more money into pension funds and discuss what investments might be suitable.” The key thing is that farmers don’t have to carry on farming. “There’s no need to feel guilty about wanting to retire,” says Ms Vickery. “Now is the perfect time to get planning with the prospect of these payments as it takes a while to retire.”
VERTICAL FUTURE PARTNER WITH CRATE TO PLATE TO PROVIDE ADVANCED GROWING SOLUTIONS FOR THEIR URBAN FARMS – IN THE UK & GLOBALLY igh-growth technology com‐ pany specialising in con‐ trolled-environment-agricul‐ ture (CEA), Vertical Future, is implementing its ‘Con‐ tainer Lab’ solutions across urban farm‐ ing business, Crate to Plate’s, new pro‐ duction sites.
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Bringing sustainable, local production of leafy greens to urban communities, Crate to Plate is a London-based urban farming business – growing the freshest possible produce, totally free of pesti‐ cides and toxic chemicals. Their brand ethos centres around efficient, sustain‐ able production and maintaining a min‐ imal carbon footprint, using significantly less water and space to produce the freshest possible produce with the highest nutrient value. Customers of Crate to Plate include Ollie Dabbous, chef patron of Michelin-starred restaur‐ ant, HIDE, as well as independent gro‐ cers like The Notting Hill Fish Shop and Artichoke in Hampstead. Vertical Future’s innovative Container Labs (built within 40 ft shipping contain‐ ers) are comprised of a fully contained growing environment complete with tune‐ able multi-spectrum LEDs, full climate control, dual irrigation, software integra‐ tion, and medical grade materials ensur‐ ing an ultra-clean, controlled climate for crops to thrive. By transitioning to Ver‐ 6|
Farming Monthly | June 2021
tical Future’s Container Labs solutions, Crate to Plate will be able to upscale their systems across the UK and interna‐ tionally and improve output and product quality, returning more value to end con‐ sumers. The partnership will start with two new Container Labs at Crate to Plate’s new site in Bermondsey, London, followed by
a further three planned containers at a new site in Stratford, London. From each of these locations, Crate to Plate will be able to produce over five tonnes of fresh produce per year (including lettuce, rocket, kale, herbs, microgreens and more), all delivered to consumers within 24 hours of harvest, with zero carbon footprint in transporting from farm to cus‐ tomer. This is also just the start of Crate to Plate’s growth plans, with many more sites planned across the UK and more broadly.
Jamie Burrows, CEO of Vertical Future says: “Our Container Labs create the op‐ timal growth environment for growing fresh produce and can be deployed close to points of consumption, using minimal space. Using zero chemicals and grow‐ ing crops in a controlled environment en‐ ables our partners to meet demand all year-round, as opposed to regular food production systems which are reliant on seasonal limitations. Our advanced tech‐ nologies, built in our Container Labs, also allow our partners to play tunes with taste, aesthetics, and nutrition.’ Sebastien Sainsbury, founder of Crate to Plate, says “Our partnership comes at a very important time of growth and devel‐ opment for both our ventures. It’s been incredibly encouraging and exciting to align with another dynamic, innovative and enterprising British business, which will help us to scale up our vision and ex‐ ecute our exciting opportunities both na‐ tionally and internationally.” Using Vertical Future’s systems will equip Crate to Plate with more efficient growing capabilities and more tools re‐ quired to meet consumers’ increasing de‐ mands for eating sustainably – in a world that demands speed, quality, and perfec‐ tion.
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