Shropshire dairy farmers urged to explore tax credits amid tough challenges

The recently released Dairy Farm Business Income Forecasts for 2024 by Defrathe Department for Environment, Food & Rural Affairs (Defra) have raised concerns within the dairy farming community.

According to the forecasts, the average Farm Business Income (FBI) for dairy farms in the upcoming 2023-24 period is projected to plummet to £50,000, marking a significant decline from the exceptional highs witnessed in 2022-23.

The substantial decrease in FBI is primarily attributed to a drastic fall in livestock output, with output from milk and milk products expected to decrease by approximately 19 per cent. This downturn is chiefly driven by a decline in farmgate prices for milk, which began to falter in early 2023 following the volatility of the previous year.

Despite relatively stable milk volumes and animal numbers, the downward pressure on prices significantly impacts overall farm income. Defra statistics reveal a notable drop in the average farmgate price from 43.59p per litre to 37.83p per litre between March and December 2023, highlighting the market readjustment and its consequences for dairy farmers.

Now Reclaim Tax Ltd is advising stakeholders in the dairy sector on the importance of claiming research tax credits as a means to alleviate financial burdens and support dairy farming operations.

Chris Jones, MD, said: “An agricultural SME can potentially claim an average of £70,000 in research tax credits which demonstrates the significant financial support available in the dairy farming sector.

"However, many farmers and agricultural businesses remain unaware of their eligibility or simply don’t understand the process of making a research tax credit claim.’

“We urge dairy farmers to take advantage of the financial support available through Research Tax Credits.” It takes just five minutes to check your eligibility for research tax relief. We are here to assist dairy farmers in navigating the process and accessing the financial support they deserve,” he concluded.

For more information, call Reclaim Tax Ltd on 01743 298980 or visit https://tax-credit.co.uk/