Leaving the European Union would be bad for Britain’s farmers as it could mean a reduction in subsidies, according to a letter signed by 39 of the most significant industry figures.
In the letter to The Times today, leading farmers and dairies say that Europe’s single market accounts for 73 per cent of Britain’s agri-food exports and gives access to a market more than twice the size of the US.
Outside the EU, Britain could keep all or some of this market, but farmers would have to abide by EU regulations without a say in their formation and pay into the EU budget without receiving payments in return.
“We’d pay, but have no say,” the letter claims. This would depend on the type of deal Britain negotiated after Brexit, however.
The signatories include the managing director of farms such as Naylor Flowers and AC Goatham and Son, the poultry company PD Hook Group, the chairman of English Mustard Growers Ltd and two former presidents of the National Farmers’ Union, including Sir Peter Kendall.
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The group says that many of the worst regulations, as well as the “gold-plating” of EU directives that make them more draconian than in other countries, happen in the UK not in Brussels.
They sound the warning on subsidies, amid fears that farms could suffer if they can no longer benefit from the EU’s common agricultural policy.
The letter says: “On direct payments, Leave campaigners have said it is inconceivable that any UK government would drastically cut support. But it is government policy, set by Labour and endorsed by the coalition government in 2011, to abolish direct payments in 2020.
“Leaving the EU would mean reducing our access to our most important market, little or no reduction in regulation, no influence on future rules, the speedy abolition of direct support and an uncertain future for UK agriculture.”
This message was reinforced by Liz Truss, the environment secretary. She said: “Remaining in the EU means that our farmers and food companies have tariff-free, hassle-free access to the world’s biggest single market of 500 million people. This brings £11 billion to our economy supporting jobs, livelihoods and our fantastic countryside.
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“All countries that are not members of the EU have to pay tariffs to get their products in and are subject to the same regulatory burdens without having a say. For example, dairy farmers who are already suffering from low global demand could face an additional 36 per cent tariff to trade with European countries.”
Speaking at the Conservative conference in Scotland, Mr Cameron took a similar line: “Today, Scottish farmers can sell their meat, without quotas, without tariffs, to a market of 500 million people. But if Britain leaves, that could all change.
“A trade deal — like the one Canada has agreed with the EU — could involve tariffs and quotas on our exports. And if we have to fall back on the basic rules for global trade, that could mean tariffs as high as 13 per cent on Scottish salmon 40 per cent on lamb and up to 70 per cent on some beef products.”
Vive la French militants
In private British farmers express immense gratitude to their French counterparts (Ben Webster writes). It was French pressure which resulted in the creation of the Common Agricultural Policy in 1962. They also know that they have French militants to thank for resisting efforts to wean farmers off subsidies. During the talks in the late 1950s that led to the common market, France insisted on farm subsidies as the price for giving German industry access to its market. Part of the objective was to improve food security by giving farmers guaranteed prices to boost production. This was so successful that by the end of the 1970s the EU had mountains of grain and lakes of milk. The CAP has fallen as a proportion of the EU’s budget but still accounts for about 40 per cent, or £45 billion a year.
Under recent reforms, countries have greater flexibility to allocate the subsidy and can spend more on the environment. But most of the money is, paid directly to farmers, based on their acreage, leading to accusations that they are subsidised simply for owning land. Last year’s Tory manifesto promised to press for “further reform of the Common Agricultural Policy”.
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With the CAP accounting for 55 per cent of the average farmer’s income, many supported staying in the EU at the National Farmers’ Union conference last week. Farmers hate the regulations that come with the CAP but they love the money more.
