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Act now to prepare for Brexit
Farmers have just six or seven years to get their businesses ready for the tremendous changes which Brexit could bring , according the Central Association of Agricultural Valuers ( CAAV ).
S peaking at the Association ’ s spring conference in Cheltenham last month , Jeremy Moody , secretary and adviser to CAAV , said : “ Brexit as an event may happen in March 2019 – but it could be that nothing much happens after that during the transition period , until perhaps the end of 2020 . Brexit will be more of a process , with changes to policy phased in after that .”
While the Government has guaranteed the total present money for agriculture until the end of this Parliament ( March 2022 at the latest ), that does not mean the money will be spent in the same way . “ In England the Government proposes to cut some Basic Payment money in , say 2021 , and remove the whole payment in the following years ,” said Mr Moody . “ Spending will shift towards environmental payments , productivity and other public goods .” Wales , Scotland and Northern Ireland will make their own decisions but will see similar pressures .
However , the changes ahead are far greater than simple alterations to farm support payments , warned Mr Moody . “ The real challenge is around third country trade deals and tariffs on agricultural imports . I think we ’ re likely to end up with tariff-free trade with the EU , but frictionless trade seems less likely .”
In future , farmers will have to become more competitive , whether to succeed in commodity markets , differentiate products to
create particular markets , or find alternative income streams from their property , explained Mr Moody . But to meet those demands , they need to start planning now . “ Some farmers are already talking about it , some have stopped talking about it in the hope it will all go away , and some will find it just happens to them . It will be the top quartile of businesses which are best placed to handle this level of change .”
Given recent announcements on future Government policy in England , farmers will likely see more support for improving business efficiencies alongside greater environmental focus – and family businesses need to identify who is best placed to embrace that change . “ We ’ re on the cusp of a technological revolution , but who
Rural broadband needs to be a priority in government policy will best handle it ?” questioned Mr Moody . “ Scale is probably still a goal for commodity producers , but for many it will be about farming smarter not larger .”
This – and potential changes to taxation - are likely to lead to considerable restructuring of land occupation and use in the longerterm , he warned . “ Brexit is going to release change that has been pent-up by the Common Agricultural Policy for years – and it ’ s going to collide with change that is coming down the track . But if we don ’ t seize the opportunity it presents , it will end up being something that is done to us rather than something we choose to control .”
For more information visit www . caav . org . uk
Connectivity and broadband in rural areas has to be boosted if farms are to reach their full potential , the NFU has said , as new broadband legislation is laid down in Parliament .
T he design of the government ’ s Universal Service Obligation sets out that all households have a legal right to an affordable connection of 10 mbps by 2020 .
However , the NFU believes that the design of the scheme has significant issues when it comes to delivering for farm businesses , many of who already struggle with connectivity .
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NFU Vice President Stuart Roberts said : “ Universal Service Obligation could have offered a real lifeline to farmers , but design flaws mean it could end up increasing the digital divide between rural and urban areas . “ The NFU has consistently urged government to develop a package of measures that boosts rural connectivity ; currently just 9 % of farmers have access to superfast broadband .
“ These businesses are facing
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daily challenges and opportunities , which include increasing food production while managing the environment and mitigating price volatility . Rather than concerns over their broadband , British farmers want to concentrate on producing safe , traceable and affordable food .
“ At the NFU Conference in February , the Business Secretary Greg Clark made a commitment that superfast high speed broadband was a legal right for all .
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It is incredibly disappointing that it would appear the opportunity Universal Service Obligation offers to rural communities is falling at the first hurdle .
“ The NFU believes that trade with other countries post-Brexit , both within and outside the EU , will be vital and farming businesses will expect the UK digital communications to be comparable and fit for purpose to compete with our international neighbours in the global market .”
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06 | Farming Monthly | April 2018 www . farmingmonthly . co . uk