Investors in a farmer-owned grain processing, storage and marketing business in Suffolk could receive a 30% saving on their investment.

Beccles-based Future Grain has been told it will be given Enterprise Investment Scheme (EIS) tax relief status by HMRC.

The landowners and farmers behind the business received a £958,000 rural economy grant from Defra in October to construct a state-of-the-art processing facility that also helps cut farmers’ costs.

The grant will fund the first building phase to create 10,000t of processing capacity, while phase two will add a further 17,000t of storage.

Atlas Fram/ADM and Dewing Grain will market the members’ grain.

Future Grain chairman Andrew Kendall said if all 27,000t of capacity were sold, storage costs could be as low as £110/t, even before the 30% EIS saving.

“We are delighted that HMRC has confirmed that, based on the current business model, Future Grain Limited will meet the company requirements for EIS tax relief,” he said.

“This is the confirmation that we expected and will make investment in Future Grain even more attractive for certain individuals.”

HMRC runs the EIS scheme to help smaller higher-risk companies raise cash by offering a tax relief to their investors.

See also Stay tax smart understanding the enterprise investment