'Cliff edge' for farmers

As I write this post, the Council of the National Farmers' Union is debating options for farming post Brexit a few miles away at Stoneleigh Park and none of the scenarios looks particularly promising.

If area subsidies are withdrawn overnight, farmers will face a 'cliff edge'. Many enterprises will go out of business and be consolidated into larger businesses or bought by foreign investors at a knockdown price.

We need a phasing out of existing forms of subsidy. Exactly how this might be done is something I am working on at the moment.

Earlier this morning I did a television interview for Reuters on the challenges for UK farming post Brexit. The interviewer made the point that they heard a lot in London about the needs of the financial services industry, but very little about farming. Exactly so.

Indeed, the UK Government is now contemplating a trade deal with New Zealand that would benefit the financial services industry, but allow in additional imports of lamb, to the detriment of the sheepmeat industry.

The Scottish Government is considering continuing general subsidies after Brexit, although they may face budgetary constraints in doing so. What is clear is that French and German farmers will continue to receive CAP subsidies which could amount to 20 per cent of the market value of product.

I want to move away from subsidies, and in particular blanket subsidies that are not related to a policy objective. But it must be done in a way that allows the industry to adjust.

A farmer writes

A contribution from an upland sheep farmer, reflecting on prospects after the Brexit decision.

'At the moment we have a reliable source of revenue from our lamb sales but are concerned to what will happen when our exit from the EU takes place as it seems no negotiations with old or new partners can take place until that point. This could leave a gap of several years before anything is agreed. There have been discussions with the US taking place for a couple of years via the EU I believe for the sale of lamb to the States, these of course will come to a stop and we will have to start again. More than one country has indicated that we will be at the end of the queue.

The British government is being rather vague over the continuation of any support after 2020. Conservation support will not pay the bills commendable as it is. It is also very short term usually in 5 year blocks, you are then on your own and must come up with new areas of the farm to enter into a new scheme for another five years.

All farms only have a limited area that can be taken out of production and still allow the farm to be a viable producer of food. Conservation will only be successful if the industry feels secure financially. Some form of support is certainly needed to counteract the volatility in food production as we all need to eat.

Of the type of support even we are not sure. Any payments per head of stock only produces quantity not quality which is not good for the industry or the environment. Payments on the number of hectares held has caused some problems in Wales as to how you value different areas of land. Perhaps something more on the quality of stock produced and sold successfully, but I don't know how that would equate in the more arable areas.

One thing is for certain, if the family farms are not maintained they simply will not be there in a few years then who is going to look after the environment? Those making an income from the land see and understand the healthy balance of the land for all concerned, and that certainly includes the wild life in all forms.

Also the local communities who rely on agriculture, there are many people working self employed, be they fencing contractors, tree surgeons, agricultural mechanics, shearers- to name some who would find themselves having to move away for work. Our villages will become ghost areas or holiday parks. even those with holiday cottages I hear are sometimes finding it difficult to fill the vacancies as there seems to be so many of them.'

How coupled payments make a difference

The last CAP reform allowed the devolved administrations to make 'coupled' payments in addition to the basic payment for particular schemes. A case in point is the Scottish Upland Sheep Support Scheme where payments to farmers have just started. It was originally envisaged that they would receive €100 per hog ewe, but demand for the scheme has reduced the payment to €78.12, still a significant amount, particularly given the falling value of the pound.

I have just returned from a visit to Orkney which is traditionally a beef area, although there are dairy herds which, among other things, supply the Orkney cheddar cheese factory which is a protected 'geographical indication'. I was surprised by the growth in sheep numbers, but the coupled payment could help to explain it.

The scheme is devised for rough grazing areas and is intended to protect the social and environmental benefits that sheep bring to those areas. There is also a Scottish Suckler Beef Support Scheme. Beef accounts for 22 per cent of Scottish agricultural output over the last ten years.

The farming community in Orkney seems to be in good heart, with their own specialist and informative magazine, The Orkney Farmer.

Some land in Orkney, notably on the island of Hoy, is not even suitable for rough grazing.

Farming in the Pyrénées

Near Lescun, France

I am just back from a visit to the Pyrénées, specifically to the village of Lescun which is at a height of around 1,000 metres. Often large flocks of sheep were on the roads as 'transhumance' was taking place from the mountain areas to the valley floors. Read more about 'transhumance' here: Transhumance

The sheep here are used to produce milk from which cheese is made. This creates good value added, and along with subsidies, allows the peasants to survive. I was advised that 'paysan' is not a derogatory word in French: it is simply one of those words that does not translate well.

I also tasted yoghurt made from sheep's milk, although I preferred the product using goat milk.Reference was made to a 'progressive' local dairy farmer who had built her herd up to 20 cows. That would not be seen as viable in the UK, but it is a different style of farming.

The village

The population of the commune has shrunk as pastoralism has declined and the village has a number of second homes. Village children go to a school in the valley. Efforts have been made to ensure that there is good internet connectivity. There is a bed and breakfast (once a hotel) and some tourist activity related to the excellent opportunities for walking.