Brexit: Inspiring Farming Today

Transcription

1 UK Agriculture Brexit: Inspiring Farming Today Phil Bicknell

2 Making Sense of the Issues Helping the industry navigate the best path through Brexit

3 It s all up for review International trade UK/EU With third countries Agricultural policy Support payments Rural development Market management Labour Availability Movement

4 It is important to recognise that the UK does not have the proverbial blank piece of paper when it comes to trade or agricultural policy.

5 Wait and see is a high risk strategy taking action Improve competitiveness it s the best form of protection Drive productivity Businesses in the same supply chain can t exist in isolation Get to grips with potential product niches at home & abroad

6 WTO: the basics An organisation for liberalising trade Covers 95% of world trade A forum for governments to negotiate trade agreements A place for them to settle trade disputes.

7 Implications for UK agriculture: Agriculture is a key aspect of the WTO Agriculture Agreement Binding and cutting tariffs Removing import bans or restrictions Cutting subsidies that distort trade Main objective to drive global economic growth through freer and fairer trade

8 Shaping farming policy - Green, Amber and Blue Box measures Measures which have no, or at least minimal trade distorting effects or effects on production. These measures are not restricted under WTO rules. Measures which provide direct payments under programmes that limit the level of production. Restricted under WTO rules. All other agricultural support payments. The amount of support is limited with reductions required on historic levels e.g. Direct payments that are coupled to production

9 WTO: Key regulations likely to impact UK trade The Sanitary and Phytosanitary (SPS) Measures Agreement The Technical Barriers to Trade Agreement Like products and processes or production methods The Dispute Settlement Understanding Regional Trading Agreements and Free Trade Agreements Rules of origin Agreement Anti-dumping regulations

10 The SPS agreement key objectives and issues To provide consumers with safe food Protect humans and animals from the spread of pest and diseases To prevent backdoor protectionism Does not include environmental or animal welfare measures Measures must be science based or will be open to dispute e.g. hormone treated beef from the US Equivalence of domestic measures must be established

11 We have a lot to offer Farming uses 75% of UK area 17.4 million hectares UK Farmers and growers contribute 61% of domestic food supplies Farming employs 466,000 people UK s largest manufacturing sector, makes up 20% of UK manufacturing Agri food sector contributes 109 billion to UK economy UK farm output valued at 23.1 billion

12 The change has started Significant currency shift Uncertainty in land and land rental market Supply chain business thinking about the supply base Farmers and growers considering their future business focus

13 Change brings opportunity

14 The 5 questions we need to ask? 1. Are we making time, on a routine basis, to take a hands-off view of the business and its management? 2. Do we know our business costs and how do they compare? What is our action plan to tackle areas of under performance / high costs? 3. Is the business developing a sufficient profit, on a 5 year rolling average, before direct payment? 4. What if the direct payment was reduced by 25%, by 50% or more? Do you have a plan that takes account of different scenarios? 5. From labour availability to succession planning, what will our business do to ensure it has the right practical, business and leadership skills for now and our future?

15 AHDB Horizon: Phil Bicknell MI Director Tel: