Government creating climate of 'confusion' over EU

The lack of clarity regarding the EU is affecting farmer's abilities to plan, according to agricultural specialists.

Paul Laird, a Director at the Fish Partnership and a specialist in the finances of farms and the farming community, said the recent discussions held by government ministers at the National Farmers’ Union (NFU) annual conference this month, which he says shows there is confusion at even the highest levels that is damaging farmer’s confidence and denting growth.

During the conference held in Birmingham, George Eustice, Secretary of State for Farming, Food and the Marine Environment told delegates that leaving the European Union would pay an £18 billion a year “Brexit dividend” that will allow the UK to spend £2 billion on farming and the environment.

He also sought to reassure farmers that they would continue to receive similar subsidies under new measures that would be brought in following a departure from the EU.

However, during the same conference Liz Truss, Environment Secretary, took to the stage to tell the audience that leaving the EU would be “a leap into the dark” that would put the UK’s £11 billion food and farming export trade at risk.

Ms Truss has previously said that the Department for Environment, Food and Rural Affairs (DEFRA) didn’t have a team working on a ‘Plan B’ if Brexit occurred, raising fears of the fallout following Brexit amongst those in rural businesses.

Paul Laird said: “Contradicting messages like these from government ministers creates confusion in the agricultural market and sows the seeds of fear over what might happen to the sector if the UK leaves the EU.

“While it is unclear exactly what the outcome would be if the country did leave, what is obvious is that the lack of certainty over the future state of UK farming is having an effect on British farmers.

“This uncertainty is killing off any prospect of long-term planning and is forcing many to reconsider investments they had planned to make, hampering any chance of growth within the next year.”

He said that businesses that were unsure of what direction their businesses should be taking should seek professional assistance to plan for the future.