Brexit bonanza: Research admits UK farms could be even MORE profitable after leaving
BREXIT could make an even greater success of British farming after research revealed the nation’s agriculture could become even more profitable.
Michael Gove: Farmer subsidies to be tied with 'green' initiatives
In a study from the independent Agriculture & Horticulture Development Board (AHDB), analysts found annual income in British farms could rise to £41,000 from the current average of £38,000.
The research looked at three possible Brexit projections, including “business as usual” where trade arrangements and subsidies continue as they have under EU rule, reduced subsidies and tariff-free access for foreign producers, and a “cliff edge” Brexit where trade is based on WTO rules and tariffs with large-scale cuts in subsidies.
The business as usual approach saw average profits rise by £3,000 a year, while tariff-free access saw a drop of £23,000 and WTO trading saw average profits of £20,000.
The Government has since hit out at the negative elements of the report, claiming it is based on highly unlikely scenarios.
The report said: “Under the three scenarios outlined in the report, changes in the UK's trade relationships will impact farmers' bottom line when the UK leaves the single market, whether or not a free trade agreement is negotiated with the EU.
"Policy decisions also leave sectors where direct support has been a key part of farm revenues, such as beef, lamb and cereals, particularly vulnerable."
The Government has previously committed to matching existing EU subsidies until 2022, while Micheal Gove has repeatedly assured farmers he will not allow cheap produce with poor welfare standards to flood the market from other countries.
A spokesperson for the Department for Environment, Food and Rural Affairs said: "This report is based on hypothetical and highly unlikely scenarios that do not reflect the government's negotiating position.
"Outside the EU and free from the bureaucracy of the Common Agricultural Policy, our farmers will be able to focus on growing, selling and exporting more fantastic produce.
"We are committed to getting the best possible deal that allows us to continue to have tariff-free frictionless access for goods and services into the European market, and we will strike new trade deals around the world to help farmers take advantage of the growing appetite for Great British food."
Last month Michael Gove confirmed he would rather hold up a deal with US agricultural industries than cause harm to British farmers.
The Environment Secretary and frontline Brexiteer has repeatedly pushed back against claims he will allow chlorine-washed chicken from the US to be imported into Britain.
Chicken is washed with chlorine to remove disease from intensively farmed poultry and is widespread on US farms but was banned in the EU in 1997.
Mr Gove claimed the aim to ensure food sold in Britain is reared with high welfare standards could hold up a trade deal with the US.
Speaking to the Commons Environment, Food and Rural Affairs Committee, he said he would ensure UK welfare standards were protected.
Mr Gove said: "We want to have a free trade deal, but, of course, we need to have those protections, and if we can't achieve protections in those areas then any deal will necessarily have a slightly narrower scope."
Asked if this could slow down the process of negotiating a trade deal with the US, he said “yes”.