A FARMING business, like any other business, must grow in order to survive in the long term. If a business has been examined and profit from the existing assets cannot be further improved, expansion or diversification should be considered.
Further to the introduction of the Renewable Obligation requirement on all electricity suppliers there is now a demand for the generation of renewable electricity and associated income from Renewable Obligation Certificates (ROC’s). This has created a lot of interest by farmers in diversifying the use of their farm resource to invest in various renewable energy projects. However, in most cases the money has to be borrowed and the project must generate a sustainable surplus to meet new loan repayments private drawings and taxation.
It can be a big challenge to understand how a renewable energy project may bring benefits to individual farm businesses. An appropriate investment in renewable energy technology can reduce the high cost of energy inputs and provide an additional source of income for the farm family. Careful consideration of the business management aspects of potential renewable energy projects is essential to enable good planning and decision making.
We are all familiar with the different types of trading vehicles such as Sole Trader, Partnerships, Limited Company, however we may not know what the advantages and disadvantages are.
The Inland Revenue also has a series of Capital allowance measures for tax purposes. A further area of business management involves planning and control of finances including the establishment of financial and physical parameters needed to measure and compare performance.
Reflecting this need, business management will be one of the themes of technical seminars to be held at The Practical On-Farm Renewable Energy event to be held at CAFRE Enniskillen Campus on 13 February 2013.
Topics covered will include the proposed Renewable Heat Incentive (RHI), grid connection, planning, NI Renewable Obligation Certificates (NIROC,s), business planning and taxation as well as financing and funding options as well as a trade exhibition. In addition, Anne Douglas, senior manager, Cavanagh Kelly Chartered Accountants together with Charlie Kilpatrick Senior business technologist at CAFRE will deliver a short seminar on these subjects.
The event will run from 1pm to 10pm. For further details, contact Connor Maguire at 028 6634 4852.