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| Life’s tough on our struggling farms. Now they face Brexit’s chill winds | |
| (35 minutes later) | |
| The herb-filled fields around Warren Farm, overlooking Cheddar Gorge and the Mendip Hills, make an ideal home for cattle and sheep grazing the Somerset landscape. But their farmer, James Small, has other priorities. He has been moving a vintage tractor into the paddock outside his farmhouse to create a children’s play area – entertainment for guests staying at the farm’s fixed tents and lodges. Glamping is growing faster than Small’s livestock business. | The herb-filled fields around Warren Farm, overlooking Cheddar Gorge and the Mendip Hills, make an ideal home for cattle and sheep grazing the Somerset landscape. But their farmer, James Small, has other priorities. He has been moving a vintage tractor into the paddock outside his farmhouse to create a children’s play area – entertainment for guests staying at the farm’s fixed tents and lodges. Glamping is growing faster than Small’s livestock business. |
| “Tourism is pretty important to us,” he said. “It does provide an income to my wife and I. We’re going to have to try to find ways to use the asset we have – the views and landscape – that is not dependent on farming. | “Tourism is pretty important to us,” he said. “It does provide an income to my wife and I. We’re going to have to try to find ways to use the asset we have – the views and landscape – that is not dependent on farming. |
| “What we’re selling our beef for is barely covering the cost of keeping the animals. The sheep do make a margin at the moment, but unless we start seeing some better returns in farming, we need to find other methods.” | “What we’re selling our beef for is barely covering the cost of keeping the animals. The sheep do make a margin at the moment, but unless we start seeing some better returns in farming, we need to find other methods.” |
| Farming is tough. Brexit may be about to make it tougher. | Farming is tough. Brexit may be about to make it tougher. |
| Small, a third-generation farmer who works with his father and uncle, is ambivalent about leaving the EU. He believes the single market has allowed farming to stagnate as an industry and the Common Agricultural Policy hasn’t encouraged British farmers to try new techniques. Reshaping Britain’s farming policy provides an opportunity. | Small, a third-generation farmer who works with his father and uncle, is ambivalent about leaving the EU. He believes the single market has allowed farming to stagnate as an industry and the Common Agricultural Policy hasn’t encouraged British farmers to try new techniques. Reshaping Britain’s farming policy provides an opportunity. |
| There is also a risk: 30% of his lambs are exported to Europe, which means having tariff-free access to EU customers is vital. “I’d like to see access to the single market being maintained,” he said. “Nice and easy transference. We meet all the regulations and requirements at the moment.” | There is also a risk: 30% of his lambs are exported to Europe, which means having tariff-free access to EU customers is vital. “I’d like to see access to the single market being maintained,” he said. “Nice and easy transference. We meet all the regulations and requirements at the moment.” |
| Brexit is becoming a balancing act between allowing farmers and businesses to have access to the single market and popular demand to reduce numbers of EU migrants. | Brexit is becoming a balancing act between allowing farmers and businesses to have access to the single market and popular demand to reduce numbers of EU migrants. |
| Walking the tightrope at the Department for the Environment, Food and Rural Affairs are two pro-Leave campaigners: Andrea Leadsom, the environment secretary, and George Eustice, the farming minister. | Walking the tightrope at the Department for the Environment, Food and Rural Affairs are two pro-Leave campaigners: Andrea Leadsom, the environment secretary, and George Eustice, the farming minister. |
| Reducing the number of migrants has the potential to harm Britain’s horticultural industry. Small has no employees – he is a partner in a family-run livestock farm, but fruit and vegetable growers need about 100,000 migrants a year to plant and pick their crops, according to Laurence Olins, chairman of the British Summer Fruits trade body. | Reducing the number of migrants has the potential to harm Britain’s horticultural industry. Small has no employees – he is a partner in a family-run livestock farm, but fruit and vegetable growers need about 100,000 migrants a year to plant and pick their crops, according to Laurence Olins, chairman of the British Summer Fruits trade body. |
| “We’re hearing that some pickers who were due to come over for the second half of the season are now not coming because of the weakness of the pound and the rumours that they’re not that welcome in our society,” he said, referring to the spate of racist incidents after the referendum. | “We’re hearing that some pickers who were due to come over for the second half of the season are now not coming because of the weakness of the pound and the rumours that they’re not that welcome in our society,” he said, referring to the spate of racist incidents after the referendum. |
| “That’s just anecdotal, there’s no hard evidence yet – it’s too soon. But certainly there is concern not just in the grower community but also among foreign pickers. Farms rely on returning migrants for 75% of their labour.” | “That’s just anecdotal, there’s no hard evidence yet – it’s too soon. But certainly there is concern not just in the grower community but also among foreign pickers. Farms rely on returning migrants for 75% of their labour.” |
| If British farmers couldn’t get migrant labour, they would end up moving their operations to eastern Europe, Olins said – growers already had operations in Poland and Portugal. | If British farmers couldn’t get migrant labour, they would end up moving their operations to eastern Europe, Olins said – growers already had operations in Poland and Portugal. |
| “Soft fruit growers are young, very adept, very switched-on businessmen and very capable of doing that. And if they operate within the EU, they will get EU funding. Which we won’t.” | “Soft fruit growers are young, very adept, very switched-on businessmen and very capable of doing that. And if they operate within the EU, they will get EU funding. Which we won’t.” |
| My worst-case scenario is ending up with WTO rules because you have lots of different tariffs | My worst-case scenario is ending up with WTO rules because you have lots of different tariffs |
| If both livestock and horticultural farmers are worried about the shape of Brexit, environmental groups are equally concerned that the wellbeing of the British countryside and wildlife might be abandoned in attempts to shore up farming. | If both livestock and horticultural farmers are worried about the shape of Brexit, environmental groups are equally concerned that the wellbeing of the British countryside and wildlife might be abandoned in attempts to shore up farming. |
| Craig Bennett, the chief executive of Friends of the Earth, is concerned that we might see a bonfire of regulations designed to help wildlife. | Craig Bennett, the chief executive of Friends of the Earth, is concerned that we might see a bonfire of regulations designed to help wildlife. |
| “Andrea Leadsom is going to have to find some difficult words to tell farmers that there’s not as much money around as they’re used to,” he said. “Already you’re seeing a vision of the National Farmers’ Union in which we should keep all the worst bits of the Common Agriculture Policy and none of the good bits. | “Andrea Leadsom is going to have to find some difficult words to tell farmers that there’s not as much money around as they’re used to,” he said. “Already you’re seeing a vision of the National Farmers’ Union in which we should keep all the worst bits of the Common Agriculture Policy and none of the good bits. |
| “If you’re going to use taxpayers’ money to subsidise things, don’t use it for things that the market will pay for anyway – food. Use it for things that farmers find difficult. | “If you’re going to use taxpayers’ money to subsidise things, don’t use it for things that the market will pay for anyway – food. Use it for things that farmers find difficult. |
| “Andrea Leadsom and George Eustice have a simple test to pass. Will they stand up for UK consumers and wildlife, or will they give in to the bloated industrial farming lobby that has taken decades of taxpayers’ billions while opposing sound ways to restore nature, cut flood risk and cut water pollution? Farmers need a better deal as well, but one that helps them restore nature and produce food, not one or the other.” | “Andrea Leadsom and George Eustice have a simple test to pass. Will they stand up for UK consumers and wildlife, or will they give in to the bloated industrial farming lobby that has taken decades of taxpayers’ billions while opposing sound ways to restore nature, cut flood risk and cut water pollution? Farmers need a better deal as well, but one that helps them restore nature and produce food, not one or the other.” |
| Small’s experience at Warren Farm bears this out. He has planted 100 acres of herb- and legume-rich grass in the Mendip Hills. The nectar-rich flowers attract butterflies and bees, which have seen sharp population declines in the countryside as a result of use of neonicotinoid crop sprays. | Small’s experience at Warren Farm bears this out. He has planted 100 acres of herb- and legume-rich grass in the Mendip Hills. The nectar-rich flowers attract butterflies and bees, which have seen sharp population declines in the countryside as a result of use of neonicotinoid crop sprays. |
| Yet Warren Farm receives no assistance from either Brussels or the British government for doing this. Those subsidies are provided by tourists. | Yet Warren Farm receives no assistance from either Brussels or the British government for doing this. Those subsidies are provided by tourists. |
| The British food and drink industry is worth £108bn a year, although farmers see very little of that, and the food they produce is worth about £24bn. But after the costs of production and tax are taken into account, farming income amounted to £3.7bn in 2015. | The British food and drink industry is worth £108bn a year, although farmers see very little of that, and the food they produce is worth about £24bn. But after the costs of production and tax are taken into account, farming income amounted to £3.7bn in 2015. |
| As a result, farmers in most sectors have been struggling, to the point of crisis. Dairy farmers in particular have been hard hit, with surveys suggesting that up to 45% of farmers want to leave the sector. Wheat and barley farmers have been unable to sell their crops to meet the cost of production. Farmers’ incomes have shrunk so much that Scotland’s chief statistician announced in June that nearly half of Scottish farmers cannot pay themselves the minimum wage. | As a result, farmers in most sectors have been struggling, to the point of crisis. Dairy farmers in particular have been hard hit, with surveys suggesting that up to 45% of farmers want to leave the sector. Wheat and barley farmers have been unable to sell their crops to meet the cost of production. Farmers’ incomes have shrunk so much that Scotland’s chief statistician announced in June that nearly half of Scottish farmers cannot pay themselves the minimum wage. |
| So what do ministers plan to do about it? Leadsom has talked of protecting subsidies “in the short term”, while Eustice, who kept his job as farming minister after Theresa May’s reshuffle, pledged during the referendum campaign to protect or even increase farmers’ subsidies, reduce regulations and push funding towards environmental protection, conservation and flood defences. | So what do ministers plan to do about it? Leadsom has talked of protecting subsidies “in the short term”, while Eustice, who kept his job as farming minister after Theresa May’s reshuffle, pledged during the referendum campaign to protect or even increase farmers’ subsidies, reduce regulations and push funding towards environmental protection, conservation and flood defences. |
| EU subsidies form about 55% of farmers’ incomes – about £3.1bn a year – but not every farmer believes they are helpful, including the NFU’s dairy board chairman, Michael Oakes. | EU subsidies form about 55% of farmers’ incomes – about £3.1bn a year – but not every farmer believes they are helpful, including the NFU’s dairy board chairman, Michael Oakes. |
| “The whole supply chain knows that you get a subsidy, so they factor that into what they believe your total income will be,” he said. “If it wasn’t there and they didn’t pay a price that covers the cost of production, we wouldn’t be in business very long. It allowed us to be almost abused for a period of time. | “The whole supply chain knows that you get a subsidy, so they factor that into what they believe your total income will be,” he said. “If it wasn’t there and they didn’t pay a price that covers the cost of production, we wouldn’t be in business very long. It allowed us to be almost abused for a period of time. |
| “Every farmer in the country would like to exist without subsidy and just get a fair price for the work and product we deliver. We’ve got to be able to compete with other European dairy farmers without being disadvantaged. In the short term we need subsidies, but we need to be cuter.” | “Every farmer in the country would like to exist without subsidy and just get a fair price for the work and product we deliver. We’ve got to be able to compete with other European dairy farmers without being disadvantaged. In the short term we need subsidies, but we need to be cuter.” |
| Oakes believes Eustice and Leadsom should look at public procurement: instructing public bodies like the NHS, the armed forces and schools to buy British dairy products instead of using the open market. Another option is loosening restrictions on so-called producer organisations – large-scale farmers’ co-operatives with thousands of members who could then negotiate with Britain’s food processing companies and supermarkets, increasing the price when they leave the farm gate. The danger for politicians would be that the cost of food would almost certainly increase. | Oakes believes Eustice and Leadsom should look at public procurement: instructing public bodies like the NHS, the armed forces and schools to buy British dairy products instead of using the open market. Another option is loosening restrictions on so-called producer organisations – large-scale farmers’ co-operatives with thousands of members who could then negotiate with Britain’s food processing companies and supermarkets, increasing the price when they leave the farm gate. The danger for politicians would be that the cost of food would almost certainly increase. |
| Mike Hambly, the NFU’s crop board chairman, believes there is an opportunity to make the new system less complex and strip away regulation – a move that would no doubt cause conflict with Friends of the Earth and other environmental groups. | Mike Hambly, the NFU’s crop board chairman, believes there is an opportunity to make the new system less complex and strip away regulation – a move that would no doubt cause conflict with Friends of the Earth and other environmental groups. |
| The biggest fear of Oakes and Hambly is that British farming will be used as a bargaining chip during Brexit negotiations with the EU. | The biggest fear of Oakes and Hambly is that British farming will be used as a bargaining chip during Brexit negotiations with the EU. |
| “My worst-case scenario is ending up with World Trade Organisation rules because you end up having lots of different tariffs for lots of different products. I fear that if we did end up going down that route, we’d have very low tariffs on food coming into the UK.” Countries like Ireland and Denmark, which export significant amounts of food to the UK, would want to protect their export market, he said. | “My worst-case scenario is ending up with World Trade Organisation rules because you end up having lots of different tariffs for lots of different products. I fear that if we did end up going down that route, we’d have very low tariffs on food coming into the UK.” Countries like Ireland and Denmark, which export significant amounts of food to the UK, would want to protect their export market, he said. |
| “It would be very easy for the government to give the Danes, the Germans and especially Irish farmers access to our market in exchange for full access for the City and financial services. For me that’s a real danger, the worst-case scenario – we’re a pawn in a bigger game and we’re not seen for the total value of the supply chain and we are sold down the river for something perceived to be much sexier.” | “It would be very easy for the government to give the Danes, the Germans and especially Irish farmers access to our market in exchange for full access for the City and financial services. For me that’s a real danger, the worst-case scenario – we’re a pawn in a bigger game and we’re not seen for the total value of the supply chain and we are sold down the river for something perceived to be much sexier.” |