The impact of COVID-19 on the agriculture sector

Category: AgricultureCOVID-19 - Posted On: Mar 20 2020


Our EQ Agriculture specialists are in constant communication with our clients and have been reviewing how the ever-changing environment is affecting agricultural businesses. We will do all we can to support our agriculture clients through this difficult period.

The most immediate impact on the industry appears to be the lack of availability of seasonal labour for soft fruit and vegetable growers. Travel restrictions and tighter border controls around the world are having a major impact on the number of people willing or able to travel during the pandemic.

Government support announced over the past few days that can help support the industry includes:

  • Support for businesses who are paying sick pay to employees.
  • Business Interruption Loan Scheme.
  • A one-off grant of up to £10,000 for small businesses who claim Rural rates relief.
  • Diversified farming businesses may be able to claim cash grants for leisure and/or hospitality ventures where the premises used have a rateable value between £15,000 and £51,000.
  • Bank of England base rate cut to 0.1%.
  • Workers involved in food production are classified as ‘key workers’ in relation to school closures for those struggling to secure alternative childcare provisions.

We anticipate more detailed support to be announced over the coming days, especially relating to employees and wage subsidies to allow businesses to continue to employ staff. We will provide further updates as soon as this information is available.

Agricultural businesses must also look at alternative ways to help get through these difficult times. Other considerations include:

  • Diversification to open up other income streams.
  • Managing costs and spreading those over a longer period.
  • Liaising with advisors over cash flow to ensure current working capital facilities are sufficient and if not, speaking with lenders as soon as practically possible to restructure borrowing.
  • Negotiations with HMRC for time to pay arrangements.

We will continue to update you as soon as information becomes available and will be on hand to support you throughout.

If you have any questions, or want to discuss your circumstances, please get in touch with our dedicated EQ Agriculture specialists by calling one of our offices or emailing agriculture@eqaccountants.co.uk.