Farming Monthly National April 2018 | 页面 6

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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 .
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
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 .
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 .”
06 | Farming Monthly | April 2018 www . farmingmonthly . co . uk