Are you an agri-tech innovator developing solutions that improve the efficiency, productivity and sustainability of agriculture? You may not realise that your new systems or processes on farm are real-life examples of agri-tech innovation – and therefore could benefit from research and development relief.
To encourage companies to invest in R&D the UK government provides incentives to companies and farm businesses that develop new products, processes and services, or enhance existing ones.
The R&D tax credits scheme allows companies to reduce their corporate tax bill or receive a tax refund based on a proportion of their R&D expenditure. The scheme can be used by any organisation liable for corporation tax in the UK and meets the necessary R&D criteria and it can even be used on unsuccessful projects. The work that qualifies for R&D tax relief must be part of a specific project which aims to make an advance in its field.
Examples of R&D in agriculture
- Optimisation of irrigation systems and water treatment
- Agricultural trials involving seeds, soils and pesticides
- Development of crop species with enhanced properties
- Design of agricultural machinery, equipment, and agricultural structures
- Food Engineering and the processing of agricultural products
- Feeding trials: developing new feeds, type of feed, timing of feed, ration timing
- Improving animal health and welfare: reducing mortality/tail biting
Agri-EPI recognises that innovation support such as the R&D tax incentive can provide businesses with a cash injection to fund further R&D and reward innovation. We are pleased to have partnered with Leyton, the UK’s largest innovation funding consultancy. to provide support and advice to Agri-EPI members and farmers to find out how their agri-tech innovations can qualify for the research and development scheme.
Matilda Hayward, Technical R&D Consultant at Leyton commented that there is a lot of misconception surrounding the types of projects which qualify for the scheme, which has resulted in a lot of companies only claiming back a small portion of what they are eligible for. The government is actively looking to support company’s investing in process and product improvements, which is a big part of running a business within the agricultural sector.
Sector examples of what can qualify
Trialling new varieties to improve yield or disease resistance | New methodologies to optimise yield | The investigation into hydroponic, aeroponic or vertical growth systems | Improving ground quality or reducing environmental impact | Modification of fertilisers to improve the absorption of minerals and nutrients | Optimisation of harvest and sorting line • Innovative use of technology – drones, sensors, scanners, software etc
Improving animal health and welfare: reducing mortality/tail biting | Reducing antibiotic usage | Feed trials or improvements to feed conversion ratio | Improvements to number of sows per litter and farrowing rate | Improvements in muscle to fat ratios/ average daily gain | Selective breeding to improve genetic trials
Feed trials to increase egg quality / quality | Light / ventilation trials to affect outputs | Housing improvements around poultry welfare | Trialling different breeds | Improving water quality to the farm | Reducing the use antibiotics: trialling vaccines/water treatment | Delaying in maturation |Increasing the FCR (feed conversion rate) |Improvements to egg harvesting (reducing wastage / automating processes)
Selective breeding to improve genetic traits | Reducing mortality rates and improving the health of the cow | Reducing antibiotic usage | Investigating alternative ways to reduce the risk/rate of disease | Developing new feeds to enhance milk production | Feeding trials: type of feed, the timing of feed, ration timing | Improving sustainability and decreasing environmental impact
Can you see any examples of your R&D on the list? If so, get in touch to discuss how you could qualify for R&D Tax relief, or talk to one of Leyton’s technical team, to see how and Leyton’s expert innovation funding services can support your agri-tech innovation full details here.