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So, you are buying your land and you know the day (or year) is going to come when you have to make a profit.
It can be easier if you get your ducks into order from day 1.
You need to make a profit from agriculture, so growing lavender, making into little smelly 'drawer' pillows and selling them at £5 each may be a money spinner, but it isn't making money from agriculture.
Growing lavender and selling the lavender to someone who makes the pillows, that is making money from agriculture... but it is the pillow maker that makes the big money, not you as the grower.
So lets assume you have your 'added value trade in mind' - we all have one, maybe 2, maybe more.
I'm not an accountant, but see what you think...
I will continue with the Lavender theme...
Lavender Farm Limited (owned by Mr Farmer) grows some lavender.
Lavender Pillows Limited (owned by Mrs Farmer) makes lavender pillows and sells them.
Lavender Pillows Limited makes loads of money, but it doesn't count towards Lavender Farm's profits.
However, Lavender Pillows Limited needs to buy the Lavender off Lavender Farms...
And Mrs Farmer is willing to pay really high prices for the right lavender... really really high prices and she really likes the lavender being sold by Lavender farms Limited.
Which nicely moves the non agricultural money from the pillow business into agricultural money of the farm business.
Has to be Limited businesses, they are separate entities.
Won't do any harm if the farm is owned by one person and the pillow business by the other, although in law it makes no difference.
If it's good enough for Starbucks... :-)
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