With a horizon of reduced BPS Payments over the coming years, we were recently asked to go and see a client in Warwickshire who we have only known for the past couple of years to review diversification options. The client has 210 acres of arable and pasture land in a ring fence together with a farmhouse and a range of predominantly open fronted buildings, one good grain store and an enclosed barn.
Class R Diversification Option
The farm’s sources of income are currently limited to the sale of grain, Basic Payment Scheme payment and the sale of straw, hay and silage. The client recognised the fact that the days of receiving about £16,000 per annum from the Rural Payments Agency as a source of support are almost gone – so something needed to be done. We inspected the farm and concluded that letting one of the buildings out for storage was worth exploring. The building was relatively under-utilised for farming and could bring in about £20,000 per annum income, if let for commercial use. The client instructed us to seek a change of use via Class R permitted development, which was successfully managed by our in-house planning team. Within the next few months, once the conversion work is completed, we hope to be in a position to let the building out.
Class R allows development consisting of a change of use of a building from a use as an agricultural building to a flexible commercial use providing diversification for the farm. The principal qualifying criteria is that the building was used for agriculture as part of an established agricultural business on or before the 3rd July 2012.
The conversion works in the example of this unit are minimal, being to replace a few box profile sheets, install a roller shutter door, (second hand, in good working order,) and make a small repair to the guttering. The building should then be ready to place on the open market for rent with our commercial agency team. There are other buildings at the farm suitable for conversion and it is likely that this will be the first of a number of units on this farm.
If you require a similar consultation, are looking at your options or would like to hear our suggestions for diversification or funding solutions, please get in touch. ian.large@howkinsandharrison.co.uk | Ashby de la Zouch | 01530 877977
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Julia Trapp
Julia looks after all of our marketing communications, printed material, design, branding, publications, digital marketing and advertising. She has worked across a number of industries in marketing roles and outside of work, if usually found on a netball court or coaching from the side lines.
