Things to consider when recruiting in AgriTech

Sam Clayton, Managing Director and Recruiter at AgRecruit shares his views

Running an AgriTech specific recruitment business means that I spend my time working with companies in the AgriFood domain when it comes to recruiting for roles that are non-traditional for the sector. This sees me working on roles in Software Engineering, AI & Robotics, Data and various Engineering disciplines, as well as commercially oriented roles focused on a tech service.

For start-ups, or perhaps more established entities delving into the tech market for the first time, recruitment can mean stepping outside of the Agri world and into a wild-west where you’ll be fighting tooth and nail for the in-demand talent you need, against companies across the likes of Banking, Retail, Energy, Healthcare and any other sector you can think of.

This post focuses on elements that need consideration before you even dip your toe into the water and start engaging with candidates. Some may seem obvious, but hopefully there’ll be one or two you hadn’t thought of which will help you on your way…

Does what you’re looking for exist?

You may have 3-4 business needs that require addressing, varying from Sales through to Software Development – but, if you’re expecting one miracle worker to solve all of these, you might have to think again. With the odd exception, generally people will specialise in one discipline; so you need to decide which of these is the most pressing, or work out if you can recruit for more than one post.

How challenging is the role to fill?

You’ve decided that your requirements are feasible and it’s all systems go. Will it be straightforward though? Software Engineers and Data Scientists, for example, are established role types – but are still notoriously hard to find and attract. Are you looking for a skillset that is abundantly available, or is this a highly specialist role that could prove challenging?

Can you make life easier for yourself?

If, based on the above point, you’ve deduced that this could be challenging, can you take measures to open up the pool of viable candidates? Some flexibility on aspects such as remote working or the role requirements (could elements be learned on the job?) can significantly facilitate your journey.

What do you have to offer?

What is standout or unique about you and your proposition that will be enough to not only convince somebody that the upheaval of changing jobs is worthwhile, but also that you should be their first choice versus the other parties vying for their attention? How are you making your ‘USPs’ (Unique Selling Points) apparent to candidates?

Do you have an interview & selection plan?

What type of interview(s) do you want to carry out and across how many stages? Are all decision makers agreed on what is needed and reading from the same hymn-sheet? Will your process give people a chance? Of course, the barrier for entry can’t be set too low… but, on the other hand, a process that is overly arduous or drawn out may result in great candidates being ruled out for minor imperfections or becoming disengaged.

Do you have the time?

You doubtless have other tasks and responsibilities that require attention; do you have the time to make this a priority right now? Can you review CVs in good time? Do you have time to vet candidates on the basics (e.g. salary expectations, are they serious about looking or just ‘window shopping’, etc) before committing to interview? Are you and all other decisions makers available to move through the interview process at sufficient rapidity?

Will you need help?

If you’ve exhausted your own network and your job ad isn’t yielding results, you may need to enlist help and look at going down the Recruitment Agency route. It will need to be a sufficiently attractive proposition for an agency to invest time & resources into. Surprisingly to many, the fee % you’re willing to pay is not the most important thing here; experienced Recruiters are more likely to prioritise the prospect of a healthy working relationship and partnership. To aid this, consider whether you’d be happy to work with one agency exclusively, or will there likely be further assignments to come should they deliver for you?

All the above points could lead to a blog post on their own, but hopefully this is enough to help make your life easier and start to maximise your chances of success. We are passionate about building further relationships in the AgriTech space and lending a helping hand where possible to growing companies in this domain, so will always be happy to provide advice and guidance for free on the topics mentioned here. Happy hunting!

Contact Sam Clayton at AgRecruit for help on anything covered in this post, or any other recruitment related enquiries:
(+44) 01908 035950
sam.clayton@agrecruit-ltd.com

Ticking the patent box – can patents reduce your tax bill?

The UK patent box is a tax break designed to encourage R&D to start and stay in the UK. It offers a reduction in corporation tax on the profits derived from patented products and processes. Corporation tax can be reduced to 10% on these profits, although as with all things tax related, it’s not that simple.

How patent box works

The calculation can be quite complex, but the headlines are:

  • You need to own or exclusively licence a granted patent;
  • Your company must have undertaken qualifying development, and made a significant contribution to the creation of the invention or to a product containing the invention.

The patent box claim can be made any time, and can be claimed up to 2 years after the end of the relevant financial year.

The key thing to understand is that the patent must be granted. UK patents can take 3-4 years to be granted, and European patents longer. Therefore, if you plan to start selling the product earlier than this it creates a bit of a problem. No granted patent = no patent box tax relief.

Fortunately there are some strategies that can help.

Fast grant

Although the default option in the UK is 3-4 years, this is not the only option. There are various mechanisms available which can speed up the patent process. These are:

AgriTech blog - Vault IP image 1

  • Combining search and examination. Usually two stages of the process, these can be combined into one.
  • Requesting early publication. Patent applications are usually published at 18 months, and won’t be granted until a minimum of three months after publication. If we ask, the UKIPO will publish the application early, meaning that the three month period will be brought forward allowing for faster grant.
  • Requesting acceleration. We can ask the UKIPO to speed things up. A reason is required, and unfortunately ‘tax relief’ is not accepted! That said, a commercial reason such as ‘fear of infringers coming on the market’ or ‘grant would aid in licence negotiations’ are usually good enough.
  • Entering the green channel. This accelerated treatment is available to ‘green’ inventions. Therefore if the invention has environmental benefits, this route should be requested if it has not automatically been entered.

According to the UKIPO, these tricks can get you a granted patent in as little as 9 months.

The smart approach

Although fast grant sounds great, it does have some side effects. One is that often a pending application is a little more scary to would be infringers than a granted patent. The scope of a granted patent is set in stone. Therefore third parties know exactly what they need to do to ‘design around’ the patent and avoid infringement. Therefore fast grant is not always the best commercial decision.

Also, generally patents will get to grant faster if we accept narrower protection. To understand this, consider the difference between broad and narrow patents:

  • A broad patent covers the core product and as many variations of it as we can protect;
  • A narrow patent focuses on the core product alone. It may be easy to design around.

So the former is better commercially, but is not great for our fast grant strategy as it usually involves a bit more of a protracted examination. Also, keeping the application pending longer is usually more commercially desirable to keep would-be infringers guessing.

So what can we do?

Best of both worlds

The good news is that we can have both. It’s possible to have a fast, narrow patent for patent box and a slower, broader patent for better commercial protection. It uses a technique called ‘dividing’ the patent application or ‘filing a divisional’. This allows the patent application to be cloned. The original application can form the patent box patent, and the ‘divisional’ used to take things slower and pursue a broader patent:

AgriTech blog - Vault IP image 2

The economics – what do patents cost?

Ultimately most clients want to know (i) what they can save in tax and (ii) what the patent costs to get granted. Question (i) is for the accountants, but in terms of (ii) a fast, narrow UK patent for a mechanical type invention can cost as little as £3500 (ex VAT) from filing to grant. This is very much at the low end of the spectrum, and the average is probably more like £5000 – £6000 (ex VAT), but all the same it is easy to see how this cost can be easily offset by the tax relief. If the product lifespan is only 5 years (patents last way longer than this- up to 20 years from filing) then it only takes £700 to £1200 of tax saving a year for the patent costs to be covered.

Everything after that is on the bottom line.

Vault IP

Vault IP is a Midlands-based, boutique intellectual property law firm, created to be an antidote to the traditional IP practice. If you would like to understand more about the patents process or require assistance with any aspect of IP protection please drop Phil Sanger a note at phil@vault-ip.com or via any of the contact details below.

+44 (0) 121 296 9164

hello@vault-ip.com

www.vault-ip.com

Minimising the impact of waste on the environment

Water sustainability and agriculture

In recognition of water saving week, Agri-EPI Centre’s Membership and Events Manager, Annabelle Gardner, spoke with member Grant Leslie, Co-founder and Chief Operations Officer of SEM Energy, an environmentally conscious sustainability partner in waste and water effluent treatment.

SEM Offices

What does your company do?

We are an environmentally conscious sustainability partner in waste and water effluent treatment. Our team of scientists, engineers and technologists pioneer leading-edge technologies that process co-products from ‘waste’ streams and deliver innovative water treatment solutions.

Our goal is to:

  • Reduce waste
  • Maximise solid matter capture
  • Save on haulage, storage and logistics costs
  • Increase efficiencies
  • Shrink the carbon footprint

What is your company vision?

A waste-free, circular economy in the future, securing our planet’s health and wealth for generations to come. We aim to minimise the impact of waste on the environment and, where possible, create value from its co-product waste streams and ensure compliance with discharge legislation.

Can you provide a case-study or example of the work you currently undertake in agriculture?

On-site conversion of agricultural animal slurry into organic horticulture products:

  • Aim – a reduction in slurry waste handling (Our client’s slurry production totalled 32,000 tonnes per annum.)
  • Method – using SEM technology to separate the liquid phase and de-water dry matter to create economically and socially valuable by-products
  • Results: water safe to discharge to local watercourse; solids (4% of total volume) used as fertiliser locally; 23% saving in handling, storage and transport costs.

We have been working with a client for the past year, applying our ever-evolving range of technologies and solutions to reduce the handling of slurry waste. Our aim is two-fold: effective separation of the liquid phase for treatment and re-use, and substantial de-watering of the dry matter to create an optimised, valuable by-product which can be re-purposed as livestock bedding, biofuel, fertiliser or growth media.

We implemented our patented MDM technology, which mechanically removes the liquid phase from slurries. It’s so effective that it also captures micro-solids as small as colloidal particles.

We integrated this with our I-DAF unit. An intelligent and autonomous upgrade to most DAF systems on the market today, it’s designed to maximise the removal of: total suspended solids (TSS); biochemical oxygen demand (BOD); chemical oxygen demand (COD) and heavy metals.

Sticking to our environmental guns, we used plant-based coagulant, flocculant and pH correction products that are automatically dosed, based on built in instrumentation readings. This ensured both homogenous, reliable performance and minimal chemical usage. The biodegradable formulations minimise environmental impact, whichever sludge disposal route chosen.

In order to ensure maximum nutrient capture and transfer from the liquid phase into the solids, we used another patented technology of ours – DRAM Filtration – to remove nutrients and heavy metals. DRAM utilises an organic matrix, over 99% of which is comprised of an existing and sustainable, agriculturally produced, grain-based, waste co-product from alcohol distillation.

The filtration process works through sorption, and readily sorbs ammonium nitrate and phosphorous. Combined with an additional proprietary reagent (DRAM+) which provides potassium, these form the essential fertilising elements.

Can you give an example of one of your technologies that focuses on water saving?

H2OPE – our flagship product for the agricultural market:

  • Removes volatile contaminants and de-waters
  • Optimises valuable ingrained nutrients
  • Remaining solid matter can be pelletised for use as fertiliser or as a nutritionally balanced growth media

The environmental benefits:

  • Reduction in application of nutrient rich liquids to agricultural land
  • Decrease in diffuse pollution of waterways due to agricultural run-off
  • Reduced carbon impact due to reduction in transport of slurries off-site
  • Significant reduction in the carbon generated by the manufacture of fertiliser

The social benefits:

  • Fewer greenhouse gases
  • Effluents can be treated on-site
  • Economic savings, as one of the by-products is steam, which can be used for on-site energy generation and distilled water.
  • Less odour emissions

Can you describe the significance of water sustainability in the agricultural industry?

Our goal is always to clean water well enough for re-use and re-purpose at source, whether that is for washdown water or perhaps irrigation. An absolute must for us, this aligns not only with our aims, but those of the United Nations 17 Sustainable Goals.

The sector has been, and will continue to be, paramount to the global economy. By protecting our ecosystems from potentially harmful co-products, we are sustaining not just the agriculture industry, but also the evolution of a circular economy.

Agri-EPI Centre and nutritional challenges of dairy calf rearing

Optimising lifelong productivity

The way a dairy calf is cared for in its early life stages can have major and long-lasting effects on the lifetime trajectory of that animal. This has significance not just at the farm level, but throughout the industry, where issues such as animal welfare, animal diseases and food safety can have substantial consequences.

Improvements in calf rearing will play a crucial role in the future sustainability of British dairy produce. Many problems exist in current calf rearing systems which threaten to restrict the sustainable development of dairy cattle in the UK. When managed incorrectly, dairy calves are susceptible to a range of health and welfare issues associated with inappropriate nutrition and weaning that can have long term impacts on the lifetime productivity of that animal in the dairy herd.

Agri-EPI has made substantial investments in a joint facility with SRUC to facilitate the measurement and management of key elements in calf rearing to optimise lifelong productivity. Colostrum management is the foundation of successful calf rearing. Colostrum contains high concentrations of protective antibodies to support a calf’s immunity, as well as a range of other constituents which are crucial to calf growth and development. Factors such as quality and amount of colostrum, as well as the timescale over which colostrum is delivered can all impact the future health status of an animal.

Getting right the energy and nutrient requirements of each individual animal goes far beyond colostrum. Dry feed, forages and water, as well as supplements and milk replacers also make up significant areas of the calf’s diet and all impact on animal health. Recent research findings suggest that the gut microbiome of the dairy calf is the key opportunity to improve early life gut health.

 

In partnership with you

The overarching aim of Agri-EPI’s dairy work is to develop and trial precision technology and techniques which support sustainable and productive UK milk production. Under an imminent Agricultural Policy reform, British dairy farmers will be required to constantly adapt, innovate and invest to ensure security for the future of the industry.

Agri-EPI’s Calf Research Facility, at SRUC’s Crichton Royal Dairy Farm in Dumfries, allows the daily monitoring of a calf’s consumption of milk, water, forage and concentrates, and its weight gain. Weigh cells in individual feeders record each calf’s intake every time they eat or drink. The data gathered by the units within the facility can be combined with data from ‘animal-mounted’ sensors, such as anklets recording an animal’s activity levels. The result is a comprehensive picture of an animal’s health and development, and how changes to intakes may influence these factors longer-term. The facility also creates opportunities for longer-term research into how different nutritional strategies may influence an animal’s lifetime health and productivity. For example, by considering how different milk formulations may impact on an animal’s growth and productivity.

Agri-EPI and SRUC are keen to partner with individual farmers, calf feed manufacturers, dairy cooperatives, processors, retailers and the wider supply chain to undertake research and trials to develop the latest technologies and techniques in calf rearing.

Example areas for research and trialling at the facility include:

  • Feed trials
  • Microbiome
  • Growth performance
  • Nutrient digestibility
  • Blood biochemical indices
  • Rumen development

For more information about our Calf Research Facility at SRUC Crichton Royal or to discuss a project/trial idea, please contact Kasi McReddie, Agr-EPI Centre Business Development Manager – Livestock.

Wyoming Interactive, digitalisation and agriculture

Enabling smart decisions

Wyoming Interactive is a digital consultancy providing data services, software engineering and user experience design to medical, veterinary, agri-tech and life science organisations.

Launched in 2008, Wyoming have built long-term relationships and a solid reputation for seamless end-to-end digital solutions amongst both US and UK clients over the last 12 years.

Wyoming help producers, breeders and veterinarians achieve high impact outcomes through smarter use of data and digital.

Digitalisation can reduce costs, increase revenues and build value-added services and Wyoming have been heavily involved in delivering these benefits to clients in Europe and North America. Much of their work in the agri-tech sector is to help organisations digitalise traditionally farming processes, such as data collection, through the use of smartphone apps, for example. Connecting new data sources, such as those based on GPS, weather, soil, herd health, crop health, etc. is a relatively new but rapidly increasing need and progressive users are seeing benefits accrue.

Wyoming incorporate these digital data sources into smart tools and power visual dashboards (which can support mobility through smartphone apps). Predictive tools can also be built on top of these data sources to move beyond ‘what happened’ to ‘what will happen’. Consequently, farms can enable smart decisions to be made and poor decisions avoided.

Data-driven farming

Agriculture and farming require digital tools to offer new growth potential. However, many producers have technology from different time periods and from different providers. While ‘point solutions’ can be adept at controlling finances, monitoring yield or tracking pesticide use, this does trend towards data silos making it harder to project an integrated view of farm performance. Data management techniques and digital dashboards marshal those various sources, abstracting the interpretation and action away from clunky source systems and into rich reporting and visualisation tools creating a holistic business view.

Allowing for better visibility and management of the wealth of data both livestock and crop farmers produce, will enable them to make data-driven decisions that will optimise yield, boost revenue, minimise expense and predict the best time to plant.

A recent example of Wyoming’s work was with an organisation that helps farmers to manage farm operations. The data generated from the farm is used throughout the food supply chain and with veterinarians. Wyoming helped to make sense of this data, creating customised models and dashboards tailored to the varying needs of different stakeholders.

For more about Wyoming Interactive, visit: www.wyoming-interactive.com.

Agri industry driving R&D

Claiming tax relief

Paul Crooks of CATAX, an Agri-EPI member, explains how those in the agri-tech sector can make a claim for the Research and Development (R&D) tax relief available.

“The demands on farmers and the agri-tech sector, driven by requirements for increasing efficiency, minimising or mitigating environmental threats, reducing energy use, waste management etc are significant and are driving an enormous research and development effort within the industry. However, farmers and the agri-tech sector are missing out on hundreds of thousands of Pounds in unclaimed Research and Development (R&D) tax relief.

“We know not enough farmers and agricultural businesses are coming forward because the numbers reaching Catax’s door are dwarfed by those in other industries such as engineering and manufacturing. As one of the UK’s leading specialist tax companies, that finding is meaningful.”

Areas where R&D is most likely to be found in agriculture include:

  • Development and use of new technologies and processes in farming
  • Reductions in the environmental impact of the sector
  • Use of data and the internet of things to aid crop or animal management
  • Robotics and AI
  • Monitoring, satellite imagery and remote sensing
  • Increasing yield
  • Improving labour productivity through robotics and machines
  • Resource management
  • Biotechnology
  • Drone technology
  • Soil management and smart irrigation.

The project doesn’t have to be successful to qualify and claims can be back-dated two years.

“Many businesses do not realise that much of what they are doing can be categorised as R&D under the government’s rules, making them eligible for the valuable tax relief that was designed to reward and encourage innovation. The HMRC criteria for genuine R&D is whether an appreciable improvement can be shown, addressing a scientific or technological uncertainty.

“Catax worked with a leading UK equipment manufacturer who wanted to develop their own range of manure spreaders and trailers and the technological uncertainty came about in meeting new mechanical, construction and design parameters to produce a new series of equipment which had increased functionality. Our twelve years of experience in specialist tax relief enabled us to identify and, importantly, maximise the qualifying costs in this innovative project and the tax benefit to the engineering business amounted to £30 000.

“Another client wanted to develop an automatic gas purging system in his potato store and a lot of work was carried out in determining the optimum location and frequency of gas sensors which linked to the automatic purging pump. The total tax saving for this business was over £60 000.

“The average tax relief benefit for farmers and agritech businesses we have worked with has amounted to £50,000 – a significant sum which could be reinvested in the business to fuel further innovation and growth. If your business profits from products you hold a patent on, then the Patent Box Tax Relief can also help retain more of those profits in your business.”

Many businesses in receipt of public grants from Innovate etc have been advised that they cannot claim R&D Tax Relief on grant aided projects. This is untrue, although the claim is processed through a different HMRC programme to the normal one available to SME businesses and can amount to a benefit of nearly 10% of the entire R&D project.

As in most disciplines, the results achieved by specialists can differ significantly from that achieved by many generalists and the same principals apply in the field of R&D Tax Relief. Most good R&D tax specialists will work on a commission basis so cost considerations can be dismissed as no fees will apply unless a significant benefit is achieved for your business.

Catax have developed a highly efficient system which maximises your tax benefit but minimises your time involvement while we collect and process the information required.

For more information, visit: www.catax.com.