Brexit will ‘accelerate changes that has underpinned UK agriculture for decades’

Brexit is a prompt to do many things the UK should be doing anyway, CAAV has said
Brexit is a prompt to do many things the UK should be doing anyway, CAAV has said

The farming industry has warned that Brexit will accelerate changes that have been under way in agriculture for decades.

The industry has been urged to look ahead and adapt quickly to make the most of potential opportunities.

The Central Association of Agricultural Valuers (CAAV) has said that Brexit is a prompt to do many things the UK should be doing anyway, such as improving productivity and competing for world trade.

“This is the biggest peacetime task since 1945 and it’s a task that’s a lot bigger than the Government alone,” Jeremy Moody, secretary and adviser to the CAAV.

“If the industry wishes to take control of its destiny it requires effective and practical leadership at every level – from top organisations down to individual farming businesses,” he added.

“We need to analyse situations, develop ideas, and have direction to manage change effectively”

Competitive economy

The agricultural industry has previously said that the UK does not have a 'blank sheet of paper' to redesign its farm trade and support policies after leaving the EU.

However, at political level, there is a real drive for a more competitive economy, warned Mr Moody.

“There is huge pressure for change – more challenges from the market and greater expectations on farming businesses Area payments have held back structural transformation for years, so there is a lot of pent up change out there.”

Farmers will have to decide if they are commodity producers, and therefore focus hard on reducing costs of production and improving efficiencies, said CAAV.

“If you can’t compete on price, then everything else is an opportunity: Adding value, niche crops, more segmented markets. Farmers have formidably good collateral in land, so can raise the investment needed to diversify. It’s not part-time farming, it’s multi-faceted earning.”

The diversification of UK farms is becoming an important issue, more and more so in recent years.

Defra Secretary Michael Gove said farmers could produce, sell and export more than ever before following the UK’s exit from the EU with the help of cutting edge technology and innovation.

CAP and income payments

Historically, the CAP was not about the support payments to farmers that it has become.

There is no reason why the successor policy should simply be about income payments, added Mr Moody.

“Policy and support can be tailored to fulfill future needs – it’s about how you operate the sector. We need to be looking at investing in marketing, innovation, the environment, research, and resilience.

“The CAAV is working closely with the Government in discussing future policy, while agricultural valuers are ideally placed to help farmers and owners review their businesses for the future challenges,” he added.

“Our profession has always adapted to changing economic and legislative scenarios, whether that’s the introduction of Farm Business Tenancies, new tax regimes, or renewable energy options.

“There is going to be more demand for broadly based, practical professional advice across the whole rural economy, and we must be at the cutting edge of any such developments to ensure we can deliver that.”

Leaving the EU and removing CAP payments to farmers without replacing it with a national policy could result in the loss of up to 250,000 jobs connected to the rural sector, according to a study.