Download Farming`s Offer to Britain

FARMING’S
OFFER TO
BRITAIN
HOW FARMING CAN DELIVER FOR
THE COUNTRY POST-BREXIT
Farming's offer to Britain
INTRODUCTION
Farming is Britain’s backbone. It matters to everyone.
Leaving the EU creates a defining opportunity for British farming. For too long the success of our sector has been
determined not in Britain, but in Brussels.
More than any other sector farming is affected by Brexit. If Government can make British farming a success postBrexit, it will be the clearest indication possible that the country will succeed outside Europe.
Because if we get Brexit right for farming, we will be able to invest in British farming to increase our productivity
and competitiveness and deliver for the wider rural economy. To shape and conserve our countryside for both
domestic and international tourism. To deliver great, affordable and local food for British shoppers. To export even
more, putting farming at the heart of our future as a great trading nation. To encourage new sustainable farming
techniques which meet the UK’s environmental challenges and reduce the risks from flooding. To improve our
food security and reduce our reliance on foreign food imports. And to safeguard Britain’s high food standards –
helping to protect the nation’s health and drive-up standards around the world.
TODAY, BRITISH FARMERS AND THEIR PARTNERS:
l Keep the nation fed – producing over 60% of all the food eaten in the UK.
l Look after over 75% of the landmass of the UK, safeguarding and managing iconic landscapes for visitors
today, and for generations to come.
l Contribute over £100billion every year to the British economy.
l Export British produce to every corner of the world.
l Provide the bedrock for Britain’s food and manufacturing sector which creates jobs and opportunities across the
country.
l Help to protect the nation’s health by upholding high standards in the food we produce at home and the food
we import from overseas.
Because of the critical role farming plays it must be at the heart of the Government’s plans for Britain after we
leave the EU.
Our vision is clear: after Brexit competitive, profitable and progressive farm businesses should play a central role in
a dynamic UK food chain.
£Bn
The UK food and drink sector provides jobs for
UK food and non-alcoholic
drink exports
14
EU28
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3.9 MILLION
PEOPLE
non-EU
10
8
The UK food and drink sector is worth
6
£108
BILLION
4
2
0
2004
2006
2008
2010
2012
2014
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Farming's offer to Britain
WHY BRITISH
FARMING MATTERS
Simply put, farming matters because food matters. It is one of the essentials of life. Just as the Government must
ensure the nation has a secure energy supply, it must ensure there is a safe, affordable supply of food.
This means British farming performing at its optimum level, delivering to the best of its productive capacity. British
farming can and must deliver for Britain.
Today, we are only 61% self-sufficient in food. And we are on a downward trend resulting from decades of taking our
productive capacity for granted and a lack of investment. Without action, our food production is projected to decline
below 50% of our needs by 2040.
Our climate, our land and our expertise all mean that yields on some British farms are among the best in the world.
This is something to be immensely proud of.
Reducing production means we will be less able to protect over 75% of Britain’s rural landscape for generations to
come, or help mitigate the impacts of climate change today and tomorrow.
And importing more food means that we export jobs in farming and food production, as well as the environmental
impact of this production. We will become increasingly reliant on other nations, put ourselves at the mercy of global
markets and risk sourcing food produced to lower standards. Over time, this will reduce certainty and transparency in
our supply chain, and could increase prices for consumers.
British farming is hugely proud of what they contribute to the nation. This is reflected in the public’s view of farming.
Survey after survey demonstrates public support for British farmers.
The integrity of British produce has never been greater, and consumers want to see more food in supermarkets from
British farms. They value a safe, affordable supply of home grown food.
But the last decade has demonstrated our food security should not be taken for granted, as world markets, driven
by unpredictable weather and unpredictable trading block decisions, have produced increasingly volatile returns for
producers.
That’s why we must seize the opportunity of Brexit to create a new British agricultural policy. One which invests in
domestic food production by supporting competitive, profitable and progressive farm businesses at the centre of a
dynamic UK food chain.
476,000
The number of people working on UK
agricultural holdings in 2014
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Farming's offer to Britain
REALISING FARMING’S FUTURE
For decades, UK farming has been subject to policies set in Brussels. Leaving the EU offers farming a huge opportunity
for change. Government can now create policies and a legislative framework that underpins a successful, progressive
sector – one that delivers for everyone.
The creation of our new British agricultural policy should be ambitious. It must aim to establish a new deal with society
– a consensus on what the modern-day farming industry can deliver for the economy, for consumers and for the
environment.
This deal must also deliver for farmers. A fair deal on trade, a secure business environment, fair returns from the
market and access to the modern and developing technologies needed to compete on the global stage.
Our vision is clear: after Brexit competitive, profitable and progressive farm businesses should play a central role in a
dynamic UK food chain.
Our farmers need to produce increasing amounts of safe, high-quality and affordable food to British consumers, as
well as to new export markets. This must go alongside high standards of animal health and welfare, and effective
environmental protection.
Our members have a clear view of the principles around which a new British agricultural policy should be
built. It should:
l Be stable, providing certainty for our industry and those who depend on it over the long-term.
l Deliver fair prices for consumers and farmers.
l Give British farmers the best possible access to markets inside and outside the EU.
l Encourage the public to prefer food produced to the high standards adhered to by British farmers.
l Support a controlled immigration policy while ensuring farmers and growers have sufficient supplies of labour.
l Build on farming’s environmental role, allowing all farmers to care for the countryside and wildlife, and mitigate
climate change.
l Improve farming’s competitiveness, including policies that are science and evidence-based to create a better
regulatory environment for British farmers.
l Void unnecessary complexity.
But before anyone can draft a new British agricultural policy, the right business environment must be created.
This means securing positive trade deals with our nearest neighbours and beyond.
It means having controlled access to a flexible labour force that can sustain the seasonal needs of the sector as well as
the labour needed further down the food supply chain.
The Government has committed to financing the current CAP budget until 2020. After this, farming will have to
present a compelling case for future support. The nature of the trading relationship we negotiate with the EU and
countries beyond, and the controlled access to labour we enjoy, will dictate the level of support we require after 2020.
That’s why our starting point must be to secure effective trade deals and ensure controlled access to labour.
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Farming's offer to Britain
THE FOUNDATIONS OF A
NEW BRITISH AGRICULTURAL
POLICY: LABOUR AND TRADE
A. THE TRADE WE NEED
Trade is an important issue for British farmers. The EU single market is farming’s biggest export destination by far, and
is crucial for some sectors. 75% of our agriculture exports are sold to the EU. In addition, because of the quality and
global recognition of British produce, we also have an opportunity outside Europe to grow our exports to new markets
around the world. In doing so, farming can add huge value to the UK economy and British farmers will be better
placed to invest in creating sustainable businesses able to deliver environment benefits.
But the future terms of access to the UK market matter. A potential unilateral lowering of British tariffs would be
damaging, especially but not exclusively for our livestock sectors.
Likewise, bilateral free trade arrangements with countries like New Zealand or Brazil must be entered into in full
knowledge of the potential impact on UK producers. The economic message is clear - many UK farm businesses would
be unable to survive if current tariff barriers were removed or slashed.
Trade with the rest of the world must be balanced – with the same conditions applying to imports and exports. And
because of the opportunity presented by boosting British agriculture exports around the world, food and farming must
be a part of our future trade talks from day one.
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Farming's offer to Britain
We have three asks to secure a good trading environment for British farmers and their produce:
l Focus on food as one of Britain’s great exports
British food and farming has a growing reputation for exports. In 2015 we exported £1,188m of dairy products,
£403m of beef and sheepmeat worth £302m. 38% of our total lamb production finds is exported to the EU, especially
France, while 26% of pork production is also exported - over 80% of this to the European markets. In the same year
cereals and oilseeds in 2015 showed a robust export balance of 3m tonnes, with a quarter of exports outside the
EU. These exports not only generate foreign earnings but also sustain the balance of home markets with less valued
products in the UK finding profitable outlets abroad, so avoiding food waste. We ask that Government works with
farmers and the UK food chain to promote and grow great British produce exports around the world.
l Maintain the best possible access to the EU single market
We support the Government’s objective of securing a bespoke trade deal with the EU for Britain, rather than following
existing models used by other countries which exclude agricultural commodities. As a part of this bespoke approach
we must ensure that our access is not constrained by tariff or non-tariff barriers, such as burdensome inspections at
our borders.
l Sign equitable trade agreements with markets around the world
We support the Government’s intention to establish Britain’s own bilateral trade deals with countries around the world
as soon as we are able. British food is already one of our great export success stories and we are looking forward
to the next chapter in this success post-Brexit. But the Government must ensure that the same conditions apply to
food imports as to our exports in each deal struck in order for British farmers to thrive, and to protect high standards
and transparency across the supply chain for consumers. At the same time, we commit to work with Government to
continue to promote the qualities and values of British production though assurance schemes, such as Red Tractor.
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Farming's offer to Britain
By 2020, we estimate
In 2016
80,000
95,000
seasonal workers were employed by
the horticulture sector
seasonal workers will be employed
by the horticulture sector
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Farming's offer to Britain
B. THE LABOUR WE NEED
Access to a flexible, skilled workforce is imperative if farming is to succeed post-Brexit.
During our consultation, members raised serious concerns about labour costs, access to skilled workers and the
opportunity offered by mechanisation or robotics to replace labour. Especially for the horticulture, poultry and pig
sectors, continued access to non-UK seasonal and non-seasonal workers is critical.
In common with other developed economies including the US, Canada and Australia, we rely on non-domestic
workers for seasonal labour.
These are jobs that are advertised locally, but are not taken up. Today's generation have higher expectations
than previous ones. Our domestic population want 9-5 jobs, near their homes, round the year, not short-term
harvesting work in potentially outdoor, remote environments. This situation is a product of our success in Britain –
but the jobs still need doing.
Even today agriculture is already facing a seasonal labour shortage for 2017. Sterling’s devaluation has made the
UK labour market less competitive. There is a real danger that production will shift abroad unless the industry
secure continued access to the supply of labour it needs.
This is contrary to the ambition of the sector to grow its GDP contribution and to put significantly more British
food on British plates - which is supported by retailers seeking higher volumes of British food due to the
uncertainty over the exchange rate and the public’s desire to purchase UK produce.
Growing our domestic food production provides jobs, adds further value to UK GDP and will continue to provide
us all with safe, quality and affordable food. Ultimately, there will be significant implications on the balance
between UK production and imports if required labour is hard to recruit, and existing skills cannot be accessed.
A lack of labour will lead to a number of consequences for UK agriculture, including produce left to waste, the
movement of investment and operations out of the UK, and the likelihood of price inflation for consumers.
The solutions we are calling for include:
l Trialling a controlled fixed-term work permit scheme for agriculture and horticulture targeted at non-EU
workers during 2017. Taking this step now will help maintain production and investment, and help reduce
the likelihood of price inflation for consumers. Importantly, it also presents a unique opportunity to test a new
approach to delivering the controlled access to workers many sectors will depend on post-Brexit.
l Provide reassurance that EU workers who are already in living and working in Britain will have right of
residency in the UK post-Brexit.
l A Government commitment to discussion and consultation on controlled access to labour for the medium to
long term.
l The Agriculture and Horticulture Development Board and Government should provide investment for,
and create the environment for investment in, innovation, productive technology, robotics, automation and
mechanisation. And to support science funding for research and development.
l Over the long-term – working with schools, the National Land Based College and universities to promote and
provide the relevant technical skills needed for the industry.
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Farming's offer to Britain
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Farming's offer to Britain
CONCLUSION
Our vision is clear: after Brexit competitive, profitable and progressive farm businesses should play a central role in
a dynamic UK food chain.
Helping to grow our economy, producing great affordable food, protecting our environment and maintaining
standards and transparency across our supply chain.
Brexit creates an opportunity to deliver this future and the benefits it will bring for all of Britain.
The first steps to deliver this new future are to secure the right trade environment and the continued access to
labour British farms need. Getting this right will set the foundations for a successful new British agricultural policy.
We know this will take time. But we look forward to working with Government to deliver a countryside that works
for everyone.
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