Although this is traditionally a quieter time of year for machinery sales as most farmers are now busy with harvest and drilling, those sales which have taken place, have seen a good trade, with a recent Cheffin`s sale reporting a 50 % increase in prices against the same sale in 2015 and over 70 % of the trade going for export to the European market.
Whilst most livestock prices across the board have remained pretty consistent, with little change in the weeks following Brexit, there has at least been some positive impact to the UK beef and lamb exports, 90 % of which go to the EU( AHDB). The sheep sector has witnessed live weight lamb prices increase by 25 % on the same period in 2015, to an average of over £ 1.80 per kg( for the week ending 26 August), the main reason for the increase is the weakening of the pound against the euro. Prices have been following the usual trend for this time of year and have started to fall as more finished lambs come on to the market. The upbeat fat lamb trade has consequently had a knock on effect with the early breeding ewe sales, with Darlington auction mart reporting that prices were an average of £ 8 per head more than at the same sale in 2015. Trade for ewe lambs is expected to be up a good £ 5 – 10 a head on 2015 levels. For the same period, finished cattle sales remain strong, though demand for bulls has fallen slightly following buyers concerns over heavier carcass weights. Again one of the main drivers behind the firm trade is the weakening value of the pound against the euro.
Now that we are in the midst of harvest; wheat, barley and oil seed rape prices are slowly beginning to creep up, though are still too low for many.
Going forward, until the UK gives formal notice to leave the EU and serves Article 50, there is going to be continued market uncertainty, which in turn will result in a weak pound. It is likely that future trading relationships with the EU will not be clear for some time and the continued uncertainty may force the likes of the food processors to move their production sites out of the UK. This would be detrimental for the UK Agricultural industry as those processors will then look to seek their produce elsewhere.
The agricultural red meat trade with non-EU countries only accounts for small volumes, though recent trade talks with the US has been positive thus far.
The recent announcement that the Treasury will commit to the same level of funding through the Basic Payment System and Environmental Stewardship currently received by the EU through until 2020 has come as a welcome relief to many within the industry.
Looking in to the future and in particular post 2020, survival for many farmers within the industry will depend on what trade deals the UK can agree with the EU.
THE POTENTIAL IMPACT OF BREXIT ON LABOUR, EMPLOYMENT AND HEALTH & SAFETY.
One of the primary policies of the‘ Vote Leave’ campaign was the perceived reduction of EU bureaucracy. On closer inspection, it is clear that whilst there are some key elements of employment law that are heavily influenced by European Directives; British Government has still set the parameters in order to achieve these Directives.
The Working Time Regulations( 1988) implemented the European Working Time Directive into British law.
Pensions in the UK are heavily influenced by European Directives, the EU is responsible for ensuring certain aspects of pensions exist however the British Government is responsible for implementing specific schemes to meet these requirements.
The Health and Safety at Work Act is the primary piece of legislation covering occupational health and safety in Great Britain. The Health and Safety Executive, with local authorities( and other enforcing authorities) is responsible for enforcing the Act.
The Agriculture( Safety, Health and Welfare Provisions) Act 1956 applies to England, Scotland and Wales. It aims to protect the safety, health and welfare of people employed in agriculture and avoid also to accidents to children arising out of the use, in connection with agriculture, of vehicles, machinery or implements.
The Government’ s new National Living Wage( NLW) is now law across the UK. If workers are aged 25 and above, they are legally entitled to £ 7.20 per hour. The NLW was introduced through amendment to the National Minimum Wage Regulations 2015.
On a practical level, whilst Teresa May has suggested she wants to continue to support EU workers in Britain, provided their home-countries support British labour in their countries, the potential impact of Brexit on British businesses using foreign labour is huge. For example, if Brexit means farmers cannot get the foreign workers they rely on, or it hits efficiency, perhaps by way of trading tariffs, more production may move abroad.
Whilst it is hoped that some streamlining and a‘ sense-check’ of the legislation that has been developed to implement the EU Directives may be possible, it is unlikely that much will change in the near future and as precedents and expectations for employers and employees alike have now been set, the most likely outcome is the transposition of most EU rules and regulations into UK Law with any change unlikely to vary dramatically or significantly reduce red tape.
decisions that will affect your business you should seek further advice, or review Defra’ s latest guidance notes.