24th April 2017
Radical overhaul to agricultural policy expected after Brexit
There’s plenty of speculation as to what will happen as a result of Brexit, but something that does seem likely is an overhaul of the agricultural policy after we leave the European Union.
Unfortunately, farmers will have to fight for Government funds with departments such as Health and Education, when Brussels hands over the purse strings for farming budgets directly to London. It won’t just be UK farmers that are affected though, because Britain actually puts more funds into the bloc's Common Agricultural Policy (CAP) than it takes out, all EU farmers will most definitely feel the effects unless that funding gap is plugged in advance.
In 2015, British farmers received a total of €3.25billion in direct payments from the EU’s agriculture fund, based on the amount of land they farm, acting as a form of income support. From this amount, each farmer receives on average £15,000, and for some this can amount to around 70% of their annual income - leaving farmers understandably concerned about an overhaul.
Until now, there has been a powerful farming lobby within Europe that has shielded British farmers, in addition to access to cheap seasonal labour and preferential trade deals, but it is feared all of these benefits may be lost post-Brexit.
On a positive note, the government has guaranteed payments will be maintained until 2020, but farming and environment minister Andrea Leadsom has confirmed that there will be a major policy overhaul when the EU subsidies stop.
At Davenham Asset Finance, we understand that limited access to finance and refinance can be a key cause in holding back growth in the agricultural sector. As machinery is an essential component of agricultural life and business, it is crucial that funds can be raised so farmers can continue to invest in equipment to aid success and experience growth. Opting for asset finance is a practical way to improve the capability, efficiency and productivity for farmers, so to learn more, get in touch with a member of our experienced team on 0161 832 8484. Take a look at the testimonial below from a farmer we helped in 2016, and visit our website to learn more about our agricultural finance solutions.
Unfortunately, farmers will have to fight for Government funds with departments such as Health and Education, when Brussels hands over the purse strings for farming budgets directly to London. It won’t just be UK farmers that are affected though, because Britain actually puts more funds into the bloc's Common Agricultural Policy (CAP) than it takes out, all EU farmers will most definitely feel the effects unless that funding gap is plugged in advance.
In 2015, British farmers received a total of €3.25billion in direct payments from the EU’s agriculture fund, based on the amount of land they farm, acting as a form of income support. From this amount, each farmer receives on average £15,000, and for some this can amount to around 70% of their annual income - leaving farmers understandably concerned about an overhaul.
Until now, there has been a powerful farming lobby within Europe that has shielded British farmers, in addition to access to cheap seasonal labour and preferential trade deals, but it is feared all of these benefits may be lost post-Brexit.
On a positive note, the government has guaranteed payments will be maintained until 2020, but farming and environment minister Andrea Leadsom has confirmed that there will be a major policy overhaul when the EU subsidies stop.
At Davenham Asset Finance, we understand that limited access to finance and refinance can be a key cause in holding back growth in the agricultural sector. As machinery is an essential component of agricultural life and business, it is crucial that funds can be raised so farmers can continue to invest in equipment to aid success and experience growth. Opting for asset finance is a practical way to improve the capability, efficiency and productivity for farmers, so to learn more, get in touch with a member of our experienced team on 0161 832 8484. Take a look at the testimonial below from a farmer we helped in 2016, and visit our website to learn more about our agricultural finance solutions.
"Thank you to the Davenham team for helping us out with our finance. After a very difficult year it has been tough but we have struggled through and things can only get better now – thank you very much."