The Farmers Mart Oct/Nov 2016 - Issue 48 | Page 8

Farm News Agricultural firms leading adoption of drone tech »»DRONES ARE HELPING UK business’ profits soar, with an estimated half a million using them for commercial purposes - and agricultural firms are among those leading the way. A study of 3,045 UK adults by DronesDirect.co.uk, one of the UK’s leading drones e-tailers, published in the The UK Drone Usage Report 2016, reveals that 586,430 Britons have used drones for commercial purposes. The agricultural industry (18%) has been quick to incorporate the remote flying technology into their processes, including assessing crop growth, and distributing pesticides and fertilisers. Unmanned aerial vehicles (UAVs) are being put to work in an increasing number of commercial situations, such as filming, surveying landscapes, and product delivery. The media industry (63%) is leading the uptake of their use –for taking aerial photography or videography. Facilities management firms (39%) ranked in second place with Mitie having recently unveiled plans to use drones for accessing problems such as pest control in high rise buildings. Oil and utilities companies (34%) are also driving drone uptake. Firms such as BP and Shell currently use UAVs to inspect off-shore oil rigs and pipelines. The construction industry (17%) ranked in fifth place, using drones to access the progress of projects. UK fire and police services have also been incorporating drone technology into rescue operations. UAVs can provide alternative angles from which to access and observe crime scenes and can be used to access the safety of hazardous sites. Surveillance (32%) is amongst the most common commercial uses of drones, following photography. More than one in five (21%) is using a drone for workplace security. Delivery is anticipated to be the largest area of growth for commercial drone usage ahead of the launch of Amazon’s Prime Air parcel delivery service, and plans by Royal Mail and DHL to do similar. The UK is a popular base for developing and testing commercial applications of UAVs. The Civil Aviation Authority (CAA) has also recently relaxed several of the current regulations surrounding UK drone usage for commercial trials, in response to requests from Amazon to trial its Prime Air delivery service, including the operation of vehicles without direct line of sight and the uses of anti-collision technology. Tim Morley, category manager at DronesDirect. co.uk, said, “It’s great to see agricultural businesses incorporating drones into their day-to-day practices to make processes simpler and more efficient. “We anticipate even more businesses using drones following the recent change in rules from the CAA.” The full Report can be found online here;www.dronesdirect. co.uk/content/dronereport 8 Oct/Nov 2016 www.farmers-mart.co.uk SIX REASONS WHY FARMERS SHOULD LOOK ON THE BRIGHT SIDE »» GREAVES WEST AND Ayre, Berwick-upon-Tweed based chartered accountants, have put together the following list of reasons to remind British farmers of the things there are to be positive about in the agricultural industry’s current climate, and how recent changes to laws surrounding pension reform and tax can be beneficial to farmers and their families. New averaging rules for tax purposes - 2016 has seen the introduction of the choice between 2 and 5 year averaging of profits for tax purposes, as well as simplification of background rules. It is worth checking which works to your best advantage. Pension reform - Amongst other changes, inheritance tax and other charges on death have gone and pension schemes in many ways can now be regarded as a multi generation tax sheltered wealth fund. It is important to review your strategy to ensure it is still meets the needs of your circumstances. Tax shelters - There remain a number of useful legitimate planning techniques and vehicles that can be used by family businesses as part of both their business structure and overall wealth and asset management. These include companies where tax rates are dropping, trusts and investment and insurance based products. Diversification - Those who have managed to diversify effectively over the last decade or so should be taking some comfort from a more robust and diverse income base in their business. Manageable diversification creates increased stability. End of Chinese One Child policy - China has ended its controversial one child policy, and it remains to be seen what effect an increased rate of population growth will have in the longer term on China’s import of agricultural products. Different options - You don’t have to do things the way they’ve always been done. It may be wise to allow arable land to lie fallow and put the capital into something else - even Premium Bonds! during the normal production cycle. Andrew Ayre, partner at Greaves West & Ayre, said: “There seem to be many reasons at present, perhaps even more than usual, to feel a bit down. These include uncertainties caused by the Brexit debate, low commodity prices, growing bureaucracy, and the impact of land reform political interference in our lives generally. As well as, of course, the perennial weather which seems to get more volatile. “However, having said that, we believe that there is still room for optimism! We thought we’d put together a list of reasons, that we’ve found to be helpful to our clients, to be cheerful and to remind people it’s not all bad.” www.greaveswestayre.co.uk