With the trigger of article 50 imminent, the agricultural industry remains divided as to whether Brexit offers the sector opportunities or threats.
DEFRA Secretary, Andrea Leadsom, set out her two long-term ambitions for the industry at the Oxford Farming Conference on 4 January:
“1.Firstly, to make a resounding success of our world-leading food and farming industry; producing more, selling more, and exporting more of our Great British food;
2. And secondly, to become the first generation to leave the environment in a better state than we found it”.
Mrs Leadsom’s focus will be on removing the EU “red tape” currently restricting farmers, such as the controversial three crop rule; welcome news to many. She also reassured farmers equal levels of financial support will continue up to 2020. Additionally, the Rural Development Program will receive up to £120 million towards supporting rural growth and a further £160 million has been allocated to a dedicated agri-tech strategy.
But questions remain.
Notably missing from the speech was any indication of what level of subsidies farmers could expect post-2020. Will the Environmental Audit Committee’s suggestion that any new subsidies be linked to environmental objectives, rather than simply providing income support, be followed?
Leaving the single market is also causing some apprehension: will agricultural success now depend more on increased access to alternative markets, and how easy will that be? Will increased competition from jurisdictions with lower food, animal welfare and environmental standards impact on UK regulations? Only time will tell.
We await clarity on potential changes to immigration rules. Already, reportedly fewer numbers of EU seasonal workers are applying to work in the UK. This could eventually affect UK production rates, leading to fluctuations in levels of imports and price instability.
Despite these uncertainties, Mrs Leadsom remains optimistic, with the announcement of a major consultation on food and farming and the environment, describing it as a “once in a generation opportunity to look at new ideas”.
Without a doubt Brexit will mean changes to the agricultural industry and potentially rocky roads ahead. Ambiguous future governmental support will mean thoughtful, forward-looking business planning will be necessary to successfully navigate the oncoming period of uncertainty.
By Marie Barber (for whom further details can be found here) and Melissa Spurling (for whom contact details can be found here).
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