The project on the Yorkshire Showground in Harrogate includes a suite of offices, plus a café and farm shop which will promote and sell the best of regional produce.

The centre has been devised by the Yorkshire Agricultural Society and deputy chief executive Heather Parry said: "We have all worked long and hard to reach this day so it's great to actually see construction begin.

"For the agricultural industry, it will provide a much needed centre and it will provide a great place to shop and enjoy good quality food and drink from our region."

The Yorkshire Agricultural Society is the first in the UK to develop a regional Agricultural Centre. The building will also house the society's office staff.

The building, designed by P+HS Architects, will have a timber frame and sheep's wool will be to insulate the offices. Rainwater will be harvested, a ground source heat pump will heat the building and solar thermal roof panels will provide some of the hot water. The shop and café will have a "green" sedum roof and a dry stone wall outer wall.

The project is being supported by Yorkshire Forward.

The society is best known as the organiser of the Great Yorkshire Show and Countryside Live. It is anticipated that construction will take about 11 months. Because of the building's position off Railway Road, neither of the shows, nor the many events which take place year round on the showground will be affected.

Over the last decade the society has spent more than £12m upgrading the 250-acre site which is the venue for a range of events from the Yorkshire International Business Convention to weddings.

This year's Great Yorkshire Show – the 150th – runs for three days from Tuesday, July 8. The Queen will join the celebrations on Thursday, July 10.