The Good, the Bad and the Brexit

The good, the bad and the Brexit

There is no doubt that Britain’s decision to leave the European Union in 2016 divided the entire nation.

Two years on, it seems Brexit is here to stay, meaning that some of Britain’s biggest industries are currently developing new business plans to ensure business continues even in the cloudiest of political climates. Looking forward, many industries are using Brexit as an opportunity to improve Britain’s domestic strategy and independency as a nation. Leading land-based institution, Hadlow College, recently held a roundtable event where industry thought-leaders discussed a variety of topics, including the challenges the agriculture industry will face during this transition.

Looking forward, many industries are using Brexit as an opportunity to improve Britain’s domestic strategy and independency as a nation. Leading land-based institution, Hadlow College, recently held a roundtable event where industry thought-leaders discussed a variety of topics, including the challenges the agriculture industry will face during this transition.

But the crucial question emerging from this debate was, considering the UK only produces 40% of the food it consumes, what are the solutions for farmers in a post-Brexit society? The new Agriculture Bill

In September 2018, the government released the first reading of the Agriculture Bill - the largest overhaul of Britain’s farming strategy since WWII. Divided into nine sections, the bill outlines new data-sharing agreements, farming subsidies and fairer trading practices, to name a few.

The ‘marmite-topic’ of the moment, the bill sees the departure from the EU’s controversial CAP (Common Agriculture Policy), a system which has been routinely criticised for its inability to deliver what is necessary to UK farming.

With the second reading been and gone and the third due to take place this month, the industry will have to await the final legislation, with all amendments, due to be released in 2019.

The amendment sparking the most controversy is in regard to financial sustainability and support - a grievance that the industry continues to face. Customary direct payments will continue to be paid in full for the next two years, but will be phased out during a seven-year transition period from 2021.

Instead, a ‘public money on public goods’ policy will be implemented; an initiative designed to improve the quality of the entire environment for years to come, focusing on soil conservation, biodiversity and flood prevention. Industry reaction

The industry, however, is sceptical of this decision, particularly as this section of the bill seems to override what the country will need to survive on if a no-deal Brexit is the outcome – food.

As the industry will have to rely on its own domestic food production if higher import costs increase prices of fresh produce on the continent, it is worrying to see little to no mention of how the UK can feed itself moving forward. Although it is great to see more investment in preserving the quality of the UK’s environment, food is a complete necessity to Britain’s population which the bill must account for.

With food demand set to be on the increase, the Agriculture Bill evades two crucial elements: what the budget will be to implement new policies and how the industry plans on feeding a growing population. With 66% of agribusiness currently dependent on direct payments, what are the other solutions?

Although there will never be a straightforward solution to cater for such a nuanced and diverse agriculture industry, there are some possible avenues the industry can propose to the government, to ensure the farming world continues to flourish in times to come.

The first option would be to offer long-term loans to ensure food productivity cycles can be sustained. With Britain’s top-fruit production averaging a 10-year productivity cycle and a twenty-year business plan, can this process be underpinned by long-term government or bank investments?

This level of investment would enable the industry to sustain itself over longer durations, providing farmers with the stability to expand their businesses and deliver produce to the nation. Negotiating trade terms

Moving away from the finance debate, the industry must also be given the opportunity to efficiently negotiate trade terms, border control and import and export costs during the Brexit discussions.

If the government decides to follow WTO standards, should it further its trade deals with non-EU countries, then the industry must ensure there are reciprocal agreements between each country.

Not only must these agreements be achieved, but the right legislation must be formulated to ensure the quality of food entering the UK meets the nation’s high requirements. Given the UK sets some of the best food quality standards across the globe, it is crucial that these standards are maintained even when the UK leaves the EU. Business resilience

It is clear that Brexit is causing a huge amount of change. But, this change could be used as impetus to create a positive UK farming industry which is robust and self-sufficient.

However, there is no doubt that UK farmers are under significant pressure to meet the globe’s

food demands. Working through every season, day-after-day in any weather condition, farmers often have little to no time to leave their site.

With this in mind, what kinds of incentives do farmers need to work more efficiently, particularly in terms of ensuring business resilience in a post- Brexit climate? Do they need nuanced, educational courses to develop their business marketing skills or more mainstream advertising? Learning platforms

Distance learning can be made available to farmers in many ways. Farmers cannot afford to be offsite; therefore, online portals provide the best opportunities for flexible learning. Farmers can also subscribe to single modules instead of an entire course if they are unable to leave their farms.

Courses and accredited programmes will provide greater accessibility for current and future farmers, enabling farmers to build upon their current skillsets to enhance their business offerings. Better advertising

Only a few months ago in October, the Food Foundation was awarded £2m worth of airtime by TV powerhouse, ITV, to promote its Veg Power campaign in the New Year. Designed to engage the nation, the campaign will encourage more families to cook with fresh vegetables.

What could the agriculture industry achieve if it was given the same opportunity? Farmers produce food to feed the nation; and considering the UK may very well be by itself from March 2019, the farmer’s pivotal role in delivering the UK’s food must be realised. Communicating the farming industry’s essential value to the nation will ensure the country continues to sustain itself until Brexit becomes a distant memory. But in the meantime, the agriculture industry will have to be on tenterhooks until the final bill is passed early next year.