Agriculture is one of the most essential industries in the UK. It sustains the population and is also the backbone of the UK economy – supporting the entire food and the drinks industry. Although originally a labour-intensive sector, technological innovations have slowly helped shift agriculture towards the ‘smart’ farming trend. The global increase in demand for food has led to agricultural businesses looking for more efficient and improved ways of farming. Thanks to technology farmers can witness quality crop yields at the year-end even in challenging times. In addition, the growing awareness about health and the environment has also made businesses seek out eco-friendly and organic ways of farming.
From introducing AI and big data technologies to using drones, automated farm machinery, and robotics – farming in the UK has become data-driven and increasingly dependent on technology. These new technological advancements help successfully tackle weather conditions and reduce the physical hours spent on the field. In addition, they also aid in increasing the fertility of the land and successfully reaping bountiful harvests.
In today’s volatile environment, all farmers want their business initiatives to succeed, and so does the UK government. It fully supports their vision and efforts and offers several incentives to farmers and businesses engaged in these agricultural technologies and processes. Even so, many farmers and agriculture businesses are unaware of these incentives. If you are involved in developing innovative methods of farming and technology within the agriculture industry in the UK, you could be eligible for an R&D Tax relief.
Claiming R&D Tax Credits is beneficial to businesses in more ways than one:
Develop & Design New Products: R&D Tax Credits for your agricultural innovation will help further fund your research. You can design new products, develop new formulas or improve existing products with the help of this money. If your design is one of a kind, you can even apply for a patent and reap lifelong benefits from your innovation.
- Improve Production: Additional funding from R&D Tax Credits will help you streamline production or improve manufacturing processes, which will lead to higher quality and production standards.
- Encourage Other Agriculture Businesses: Food is a fundamental human need, and businesses in the AgTech sector continuously need to look for innovative solutions to ensure better yield. When more and more agriculture businesses start claiming R&D Tax Credits, it encourages others in the industry to invest in R&D and reap the benefits of R&D Tax Credits.
- Increase In Profitability: The technological advancements in farming boost the quality of the crop yield – helping farmers earn a higher price for their products. Add to that additional cashback earned through R&D Tax Credits, and farmers and agriculture businesses can significantly increase their profitability.
Some Of The Areas Where You Can Claim A Tax Credit Are:
- Innovative use of AI in transforming agriculture
- Use of sensors and data analytics to improve agricultural efficiency
- Building new technology to improve the yield and quality of crops
- Eco-friendly techniques of farming
- Developing biotechnology tools for crop improvement
If you are a farmer or a business involved in technological innovations within the agriculture sector, Datafox can help you claim the maximum payout through R&D Tax Credits. Even if you have already made a claim, we can help you explore the full potential of that claim and identify any missing costs. Get in touch with our experts to make a successful claim.