< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AGRI-BUSINESS SPOTLIGHT Farming under threat The farming industry is suffering not only in our region and not only in our country, but across the EU and further afield. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link AGRI-BUSINESS SPOTLIGHT © stock.adobe.com/shaunwilkinson R ecent developments, particularly concerning border checks and import procedures, have raised concerns about the nation’s ability to maintain a stable and reliable food supply chain. The government decision to conduct import checks inland rather than at the point of entry, with upshots including raised transport costs and slowed trade, has increased our reliance on cheap imported goods to manage the expense. This shift in priorities has inflamed the fears of the farming industry, signalling threats to the future of British farming, as well as food availability catastrophes. Because our country relies on imports for over 45% of its food needs, any disruptions or delays in the import process can have far-reaching consequences, which may even lead to major food shortages and empty shelves in supermarkets. These concerns are compounded by the introduction of a post-Brexit border check system, which has already begun to impact trade dynamics. European hauliers are reportedly more likely to avoid work in the UK due to the confusion and paperwork demands of the new system, while EU businesses look elsewhere to avoid the inflation in trade costs. Meanwhile, food campaigners Sustain found in 2022 that UK farmers made less than 1p profit from their produce and food goods. Some may view these challenges as merely part of the Brexit process. However, they represent a significant obstacle to our farming and national- grown food security. UK farmers remain undercompensated, while being increasingly sidelined in favour of short-term economic solutions. Brexit supporters initially touted reduced imports as a boon for UK farmers, anticipating increased domestic demand for their products. However, the reality has been far from optimistic, 22 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AGRI-BUSINESS SPOTLIGHT with ill-conceived government funding and aggressive pricing tactics by supermarkets eroding the viability of domestic agriculture. In sectors such as pork and apple production, UK farms have recently found themselves unable to compete with their European counterparts, leading to a sharp decline in domestic production. This not only threatens the livelihoods of farmers but also undermines the UK’s self-sufficiency, as the nation becomes increasingly reliant on imports to meet its food needs. Farmer-led protests across the UK, mirroring similar movements in the EU, serve as a stark reminder of the urgent need for policy interventions to address the imbalance in the market and protect domestic producers from unfair competition. The agricultural community is asserting that a series of poor decisions is slowly and quietly demolishing the UK’s farming sector, and protesting by taking actions such as tractor blockades at major ports. Despite generous subsidies being granted to farmers who take up to 280 actions to make their farming more environmentally friendly, these funds are unlikely to reach those most in need of financial support. Building sustainable farms often means integrating new technologies and planting systems for soil conservation, water management, biodiversity provision, and more concerns besides. When considering the cost involved for farms which are already struggling, it’s easy to see how subsidies can fall short in serving the everyday needs of farms and farming businesses. Poorly designed programs then lead to market distortions, incentivising overproduction or favouring certain crops over others. When problems like these lead to looking overseas for cheaply farmed products, they make agriculture an unjust competition for supremacy, rather than the community effort it should represent. Moreover, the introduction of this Sustainable Farming Incentive (SFI) by the government has raised concerns about its impact on food production. © stock.adobe.com/Gillwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link AGRI-BUSINESS SPOTLIGHT Critics argue that the SFI, while aimed at promoting environmental sustainability, incentivises farmers to prioritise environmental goals over food production, further exacerbating the decline in domestic agriculture. The government’s denial of the SFI’s negative effects does little to allay fears within the farming community, with many calling for urgent action to address the crisis facing UK agriculture. As trade struggles persist and poorly planned subsidies continue to undermine domestic producers, the future of UK farming hangs in the balance, necessitating decisive and effective policy responses to safeguard the industry and ensure the nation’s food security. When acted on in an inclusive and directly supportive way, farm subsidies play a vital role in sustaining agricultural production by providing financial support to farmers, stabilising food supplies, backing rural development, and mitigating the impacts of market volatility and natural disasters. Funding plans which are developed to serve farms who hope to invest in modern farming techniques, infrastructure upgrades, and sustainable practices, serve as lifelines for these small businesses and enable them to invest in their future, enhancing productivity and resilience. Furthermore, investing in technology and innovation can help businesses streamline their operations and enhance efficiency in the face of regulatory complexities and logistical challenges. Automation, data analytics, and supply chain management software can improve visibility and traceability across the entire supply chain, enabling businesses to identify and mitigate potential bottlenecks and disruptions proactively. As it stands however, current funding availability exacerbates inequalities within the farming sector, disproportionately benefiting large-scale producers at the expense of smallholders and marginalised communities. Vulnerable farmers have largely been abandoned by Brexit reformations, struggling to compete in an increasingly competitive marketplace. © stock.adobe.com/Budimir Jevtic East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION, MACHINERY AND EQUIPMENT © stock.adobe.com/Freedomz environmental A push toward sustainable development and environmentally friendly construction material may well shape the future of the construction industry. With an eye for the www.eastmidlandsbusinesslink.co.uk East Midlands Business Link CONSTRUCTION, MACHINERY AND EQUIPMENT A sustainable material can be defined as one that does not deplete non-renewable resources and has no adverse environmental impact when used. When reviewing that definition, the first thing that likely comes to mind is recycling, and yes, recycled, or reclaimed building waste is a sustainable material. Arguably, this is the most sustainable way of constructing new buildings if ‘closed loop thinking’ is employed. Closed loop thinking works on the basis of reusing a material in its’ current state for as long as possible, then recycling it when it cannot be used in its current form (recycling involves a process of turning the material into another form, thus creating some emissions) and finally throwing away once no further use can be made of the material. Recycled or reclaimed materials are also more cost-effective for both construction companies and clients, as they are easier to source (from existing sites or merchants) and cost less than brand new items. The easiest way to operate closed loop construction is to re-use materials or components in situ, so using an existing building or parts of buildings (this extends to foundations, frames, and façade masonry) and upgrading specific areas as necessary. If the structure no longer remains, the existing ground floor slab could be built upon. This would mean fewer hazardous materials such as concrete would have to be used, lessening the environmental impact of each project. A little more project planning could also help to identify materials or components that could be reclaimed with little processing. These could include steel beams or columns from previous buildings, crushed glass as bedding material for paved or block surfaces and 26 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION, MACHINERY AND EQUIPMENT building detritus (such as crushed aggregate) for landscaping or backfilling. Further sourcing efforts could also find discarded railway sleepers or telegraph poles, which could be dismantled and used in multiple ways. Employing unique items like these adds intrigue to the site, giving the potential for companies to create a landmark with their buildings. For example, using reclaimed wood from old buildings or barns gives an olde- worlde, calming charm to new properties which new wood cannot replicate. Whilst reusing existing materials should be the first port of call, some fascinating developments are being made in brand new sustainable construction materials. As an insulating compound, there is little better than aerated autoclaved concrete (AAC). This is made by mixing lime, cement, water, and a foaming agent. This mixture is then cured in an autoclave, causing it to expand and harden. The result is a lightweight and porous material which provides better insulation than concrete. It is also more resistant to fire, water, and mould, making it perfect for a wide variety of commercial applications. It can be used as a concrete replacement within structural components too and can withstand high wind and seismic activity. Furthermore, it is easier to work with than traditional concrete as standard tools can be used, making it a fast favourite for construction companies. It is more expensive than traditional concrete due to the extra effort in creation, however the energy saving benefits and low maintenance means it is likely to be more cost effective long-term. Plenty of sustainable strides are being made when it comes to flooring, roofs, and insulation. Bamboo is one of the most popular sustainable building materials. Firstly, it is fast growing and can be harvested in as little as three to five years. It is lightweight, making it perfect for interiors, such as flooring and wall panels, but it also has a tensile strength which rivals steel. This means that bamboo can also be used structurally for beams and columns. Similarly, cork is another commonly used environmentally friendly resource. As a bark from the cork oak tree, it can be harvested without needing to cut the tree down, making it an easily accessible material. It is best utilised as insulation, as it is lightweight but durable. Furthermore, it is naturally resistant to mould, mildew, and insects, making it ideal for food manufacturing or warehousing properties. Even more intriguing as an insulant is hempcrete. Made from the woody core of the hemp plant (making waves across multiple industries for its’ healing properties), it is mixed with lime and water to create the perfect insulant for walls, floors, and roofs. Hempcrete gains further sustainability points as is absorbs carbon dioxide as it expands, and is non- toxic to humans or the environment, making it a carbon-negative material. Alongside many other industries, the demand for more sustainable methods is driving product innovation. As can be seen from above, one of the key ways this is being done is through plant extraction. Bamboo, cork, and hemp are likely to become some of the foremost construction materials in the future, due to their unique properties of strength and resilience. Furthermore, unlike slow- growing trees, these materials can be harvested quickly, sometimes without having to cut down the plant, making them a truly sustainable resource that can accommodate continued industry growth. The primary sticking point for companies seeking to invest, is likely to be the materials cost. Newly innovated material generally costs more than traditional building materials. However, the resistance of these materials to weathering, and their energy saving properties makes them a positive long- term investment. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link CONSTRUCTION, MACHINERY AND EQUIPMENT © stock.adobe.com/Duncan Andison East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX James Pinchbeck, partner at Streets Chartered Accountants, provides food for thought ahead of the general election. T he wait is over and we now have a date for a general election, the 4th July. Whilst many will have been pressing for and wanting an election, how many of us have considered why or what we really want from the next government? Whilst individuals will no doubt have their own thoughts and asks, these invariably will be unique to them. When it comes to businesses there is probably a more collective thought or ask. Perhaps this might start with a government that provides greater stability, a sense of direction and vision for the future, one that has empathy for people and businesses alike, with the need for disruption and doing things differently being at the heart of addressing the challenges we face. That is opposed to internal politics and disruption we have seen over the term of this parliament, with infighting and a focus on themselves rather than the people they serve. There also feels like a need to demonstrate more in terms of good governance and embracing the Nolan principles of public life, which are around selflessness, integrity, objectivity, accountability, openness, honesty and leadership. For many in business there is a real quest for a more stable economy along with greater certainty and growth. With a greater sense of confidence and trust, optimism tends to follow along with the assurance and decision to make business investments and to drive change and growth. It would seem that much of the challenge of the cost of living has rightly focused on individuals but we mustn’t forget that people run, manage and work in businesses. Therefore, businesses are also impacted both directly and indirectly by the cost of living and the cost of running a business. Certainly, businesses are keen to see costs come down and stay down, something which no doubt requires a continued focus on the likes of energy costs and overall supply chain management. Rising costs over recent years, along with workforce and skills shortages, are certainly taking their toll on established, new and scale up enterprises. As such there needs to be a greater focus on improving productivity and for ensuring that our education system, from primary to tertiary and lifelong learning, is best placed to support the needs of our businesses. Business leaders are also frustrated by poor infrastructure, not least the inability to travel efficiently and effectively around the country whether by road, rail or public transport – we would all benefit from investment in the same. Whilst healthcare will be high on the list of issues campaigned about and will be on the minds of the electorate, we often overlook the impact on the workplace of people not being able to access and receive the health and welfare care and support they need. Certainly, many a business could benefit from a more robust, resilient and responsive care sector. Though it may seem an age since the pandemic, we are still dealing with the fallout and there still seems a lot to be done to support communities affected and the lasting changes we face. In particular it seems that many of our vital third sector organisations and the social economy has been hard hit and one which, despite its key and vital role in society, is often overlooked. We must also consider Brexit as we still seem to not have realised the supposed or otherwise benefits of our withdrawal from the EU. For some this will be around dealing with the challenges involved in trading with EU states, as well as the need to explore and realise new trading opportunities. There is also the key issues of geo-political challenges and a real sense of unrest, war and conflict around the world. Nor too, global warming and the environment. Whatever the outcome of the election, hopefully this has provided food for thought. Perhaps surprisingly there is little reference here to taxation and the need for tax reform or changes. Next >