The British farming industry is facing a dire situation, with Brexit being the catalyst for a series of devastating changes. The UK's departure from the European Union has resulted in a perfect storm of challenges for farmers, from plummeting prices for their produce to a complex web of environmental and trade regulations. The impact is so severe that it threatens the very existence of British food in the mainstream market, as Liz Webster, a farmer in Wiltshire, southwest England, warns. This is not just a story of financial hardship for farmers; it's a tale of how Brexit has disrupted the delicate balance of food security and environmental stewardship in the UK.
The Perfect Storm of Challenges
Brexit has brought about three significant changes to British farming: the withdrawal from the EU's Common Agricultural Policy (CAP), the introduction of new trade policies that flood the market with cheaper imports, and the creation of trade friction with the EU, the UK's largest food export market. These changes have had a profound impact on farmers, with the quantity and value of farmed exports to the EU nearly halving, and the variety of exports reducing by a third. The poultry sector has seen exports fall by 38%, beef by 24%, lamb by 14%, and dairy by 16%.
The fall in prices for livestock, which typically fetch £2,000 to £3,000 per animal, is a direct result of cheaper meat from Australia, a consequence of the new trade deals signed by the UK government. This has left farmers struggling to make ends meet, with the price of inputs like feed, energy, and fertilizer soaring. The situation is so dire that British food, unless it's niche and appealing to a particular wealthy market, may disappear from mainstream supermarkets.
The CAP: Welfare for the Rich?
The CAP, the subsidy system that has been in place since the mid-1970s, has been criticized as 'welfare for the rich'. It rewards the biggest farmers, often with scant regard for the environmental consequences of their intensive farming practices. The CAP has been accused of encouraging the overuse of pesticides, fertilizers, and other chemicals, contributing to environmental degradation. The system is so opaque that it's hard to even identify who the biggest beneficiaries are.
The Promise of Reform
Michael Gove, the environment secretary at the time of Brexit, hailed sweeping reforms that would lead to 'public money for public goods'. The idea was to encourage farmers to adopt more sustainable practices, such as environmental land management schemes (ELMS), which would protect nature, maintain air and water quality, nurture the soil, and provide habitats for wildlife. However, the reality has been far from ideal.
The Reality of Reform
In practice, delays, revisions, and disruptions have hindered the implementation of these reforms. Farmers in England are facing the end of old land-based payments next year, but the switch to the replacement sustainable farming incentive (SFI), landscape recovery scheme, and other ELMS measures has been fraught and patchy. The farm budget, which is about £2.3bn a year for England alone, has not kept pace with inflation, and only about half of farmers receive payments.
The Impact on Small Producers
The introduction of friction to trade with Europe has been particularly devastating for small producers. Businesses like seed potato exporters, shellfish sellers, and bull semen breeders have found themselves stranded, unable to export their products to the EU market. The costs of haulage for small loads have become prohibitive, making it difficult for smaller producers to compete.
The Promise of a Green Brexit
The Conservatives promised that Brexit would be green, with farmers playing a key role in this. However, a report from the Wildlife Trusts found that the UK has diverged from the EU on key environmental regulations, and Labour's focus on 'bats and newts' as obstacles to development has plunged nature into a worse plight. The government's abrupt closure of the SFI last year, due to concerns over farmers doing the minimum for their public subsidy, further highlights the challenges facing the farming industry.
The Way Forward
The reset promised by the Labour government could ease some of these issues, but not all. The future of British farming hangs in the balance, with the industry facing a series of challenges that threaten its very existence. The question remains: can the UK find a way to balance the need for food security with the need for environmental stewardship, or will British food disappear from the mainstream market?
In my opinion, the future of British farming is at a critical juncture. The industry has been hit by a perfect storm of challenges, from Brexit to environmental regulations, and the impact has been devastating. The government has a crucial role to play in supporting farmers and ensuring food security, but it must also address the environmental concerns that have contributed to the current crisis. The UK must find a way to balance the need for food security with the need for environmental stewardship, or risk a future where British food is no longer a staple of the nation's diet.
