Savills |

aspects of land

| spring / summer 2017

EXPERT OPINION

SUBSIDY FREE

STUART GRAY

Landowner and dairy

farmer in Scotland

“Seven years ago I

decided to farm without

subsidies – I just got

fed up with all the

paperwork. I made up

my mind to stop and

that was it. I always

thought that we would

eventually lose subsidies,

so it just made sense.

Today we farm a

grass-based New

Zealand system with

400 dairy cows. Farming

without subsidies makes

you tighten everything

up. You’ve got to forward

plan more efficiently but

I have no

regrets.We

can farm as we want

farm.We’

ve had no

problems and we’re

completely happy with

how it has gone.

I think it would be

a great thing if the

government did scrap

subsidies, but it is

obviously going to try

and keep them going for

a while yet.

It’s a bad system

because it doesn’t help

young farmers get started

and the farmers who

are depending on them

are probably better off

getting out of farming.

If there are no

subsidies, people will be

forced to up their game

and they will be better

farmers because of it.”

THE BANKER

OLIVER M

ENTYRE

National Agricultural

Strategy Director, Barclays

“If subsidy support

is withdrawn, the

marketing of British

produce would need to

be significantly scaled

up to promote brand

and country of origin

loyalty with the British

consumer. For that brand

loyalty to fall into place,

UK produce would have

to be price competitive

with produce from

around the world, as

many consumers buy on

price rather than origin.

“Therefore, UK

farming would need

to move to even more

highly efficient, high

output production to

provide for the everyday

market, as while there

is always going to be a

THE RURAL GUARDIAN

PATRICK BEGG,

Rural Enterprises

Director, National Trust

“Farming and the

environment – so

inextricably linked –

look vulnerable to a

Brexit

shock.We

need

to ensure that public

money supports farming

that delivers public

goods – such as quality

food, more wildlife and

beautiful landscapes.

“Direct payments

have kept many

businesses afloat. Dig

deeper, however, and

you find that they

have also encouraged

dependence and masked

fundamental weaknesses

in farm business models.

Agri-environment

payments have slowed

wildlife declines, but

biodiversity and soil

quality are still falling.

“Coupled with a harsh

trading environment

outside the EU, we

could see a race to the

bottom for UK farming.

Welfare standards and

environmental protection

could be sacrificed in the

struggle to compete on

the world stage.

“Neither the public

nor farmers want this

future.We

all want

sustainably produced

food, more wildlife and

beautiful landscapes.

Farming can provide

water management to

ensure less devastating

floods, carbon storage

and it can help improve

the nation’s health – and

it already does this.

“Farmers should be

supported financially for

providing these public

goods, alongside high

quality food for which

the market will pay.

“But it would be naive

to expect the government

alone to pick up the

tab.We

need new ideas.

With think tank Green

Alliance and other

landowners, we’re looking

at how to create markets

for these public goods,

which can sit alongside

food production at the

heart of farm businesses

post Brexit.”

market for high quality

produce, the breadth of

that market is limited.

“There also needs to

be a clear differential

between subsidised food

production and payments

for environmental

management – in reality

this is something which

needs to take more of

a visible profile anyway

within the understanding

of UK consumers.

“A loss of subsidy

would drive a need for

many to achieve even

higher levels of efficient

production, without

compromising welfare

standards and quality

of product, to drive

profitability.While

those in geographically

challenged areas

would need to look

to environmental

management payments

to add income to

their business.

“Whatever the future

of farm subsidies, a

business will need to

have long-term viability

to give a bank confidence

to offer long-term

financial support.”

Dairy farmers typically earn 20 per cent of their income through sudsidy

“FARMING WITHOUT

SUBSIDIES MAKES YOU

TIGHTEN EVERYTHING UP.

YOU’VE GOT TO FORWARD

PLAN MORE EFFICIENTLY

BUT I HAVE NO REGRETS”

SHUTTERSTOCK