Europe – in or out

Europe – in or out – is a hot topic and the debate is particularly important for the UK farming community.

Having just had my annual catch-up with many clients as we have completed their Basic Payment Scheme forms, there is no doubt that the mood is generally downbeat as most farmers are struggling with the impact that low commodity prices are having on their business.

So the support payments received from Europe through the CAP have once more become a very important income stream for most farmers. Whether that is a good thing is a different question, but I suspect many farmers will be relying on such payments to make a profit this year.

This is a significant change from the last few years when commodity prices were higher and the underlying farming business was able to make a profit without support from Europe. This led a number of my clients to question the need for support payments because of all the cross compliance regulations attached to them, but I hear this radical opinion less often now.

That does not take away the immense frustration many feel about the endless red tape and regulations, many of which seem to have their roots in European legislation, although whether our own government “gold plates” these rules is a moot point.

David Cameron would ease the concerns farmers about Europe if he could cut meaningless red tape, like the “greening” rules associated with the new Basic Payment Scheme.

Then there is the issue of European workers. When I started practising in Somerset more than 25 years ago I cannot remember any non-British (and very few non- Somerset) farm workers here. The contrast today is quite extraordinary, especially on intensive dairy farms where Eastern Europeans are almost the norm.

So, before any farmers vote to get out of Europe because of all the hassle associated with regulations, they need to ask themselves some serious questions.

First, would a British government of any hue provide the same level of direct payments that farmers now receive via the EU? My hunch is they would not.

Second, how would some more intensive farms staff their holdings without the availability of a European labour force? I suspect attracting a replacement British workforce would prove significantly more expensive.

Third, do you think that rules and regulations will significantly diminish if we are outside the EU? I have my doubts as we seem perfectly capable of creating our own red tape.

Fourth, if we think the playing field is uneven when we are in the EU, do we think it will get better or worse if we are outside? I don’t think this question is very difficult to answer.

Farmers who are understandably frustrated by the endless rules and regulations coming out of Europe should think twice about voting to quit the EU because our exit would herald a challenging new world for agriculture in this country.

There is an argument that these dramatic changes would benefit the industry, as it did in New Zealand some years ago, but there would undoubtedly be significant collateral damage affecting the wider farming community.  

James Stephen MRICS FAAV
Partner
Rural Practice Chartered Surveyor, Wells
T: 01749 683381
E: james.stephen@carterjonas.co.uk