Post Brexit Agriculture

rancidpunk

We might be able to source food cheaper, although we obviously need a better lettuce negotiator, but that's far from the only thing that affects food pricing.
Flipside to that though is our own farmers would also be exporting at lower rates too, meaning they will need even greater subsidies than they already receive.

Pacifico

So we are back to do we protect farmers from competition or do we allow poor people to eat.

I know which one I prefer.

Pacifico

They could just sell to the UK market. If we are going with imports being expensive and exporting being a bad idea, then how about British farmers sell to British customers?

tapzilla2k

We could, but we still wouldn't produce enough to not have to import. It also begs the question of at what price. Continue at the same rate, with the same subsidies, and it's stalemate. The consumer will still see a price rise if the pound doesn't recover and inflation continues to rise.
They could sell cheaper, pass on the saving to the consumer, but that would leave them needing extra help in subsidies.

There's so many variables, but a big part of why our farmers wanted to stay in the EU was because the current set up benefits them. I'd like to see our government do the same for them, the money will be there.
To paraphrase a controversial slogan.

A large part of the money we send to the EU every week is used to fund agriculture in the EU. Let's fund our farmers instead.

rancidpunk

why would you expect not to pay farmers what it costs to grow food?

Pacifico

No - you have got that 180 degrees out. The Pound has fallen which makes UK produced food cheaper on the world market without affecting Farmers income - in fact it is likely to go up.

Pacifico

Supermarkets will not pay more than they have to, in order to remain competitive with each other to attract the consumer to spend money. Before you can remove subsides you will have to force the supermarkets into paying more for farmers produce, as the free market won't do it. So the choice really boils down to paying farmers subsidies to offset losses vs forcing the Supermarkets into paying the correct price for milk (and other produce). If we continue with subsides to keep farmers afloat then cheap food or milk is just an illusion as the bill is picked up by the tax payer in the end.     

1000 dairy farms have closed down since 2013 -
http://www.bbc.co.uk/news/uk-england-36764592

My dad would laugh in your face, you've not got a clue about the pressures in the dairy industry.
He asserts that the worst decision made in regards to the dairy industry was the abolishment of the milk marketing board and price controls i.e. farmers and processors were guaranteed a minimum price for milk.

Food Security is the relevance. If there is another World War, we are not in a good position to secure our food supplies at least in the short term. We'll never be totally self sufficient, but we need to improve on that score and have done for decades.   

We've had higher food prices than the rest of the EU in the past. I believe Belgium food prices were 8% higher than the EU average in 2016. It's a very complex picture and a lot depends on what the Commodities Markets are doing.  

Yes, if we can strike good trade deals on agriculture with other non EU states. Of course we might get a good deal with the US and get flooded with US food products. Mmmm chlorinated chicken.

While Inflation is set to out pace wage growth later in the year, the weakening pound is having a varied effect on the Economy.

raduv1

We will never be self sufficient.

Better to ensure we have a diverse supply than to pursue a policy that impoverishes further those on low incomes.

A lot may depend on the commodities market, but the protectionism of the EU ensures that we always pay more than world market price.

Leaving gives us the opportunity to escape that.

Or we could get cheap beef, corn and other products that the US is a major producer of.

Or we could source other food on world markets without the EU protectionist tariffs pushing up the prices.

I'd still expect that anything sold here would need to meet our legal requirements on food safety.

IronGiant

Then you haven't understood that I wasn't talking about that. I'm talking post Brexit when we're no longer bound by CAP. Our farmers will be in a more competitive market for their produce, with no guarantees of even being able to survive if the right deals don't get struck, and/or the government doesn't support them after 2020.
We may very well be able to have our cake and eat it, but the flipside to maybe being able to buy cheaper is that we will likely have to sell cheaper too.

rancidpunk

If the market price of a pint of milk is £100 then thats what they will sell it for. If they dont sell stuff they go out of business


Good job we are leaving the EU and the CAP then

I'm sure that Farmers would love price controls - personally I think the consumer benefits more from competition.


we weren't self sufficient in food in WW2 - EU membership certainly hasn't solved that issue


You dont need a trade deal for cheaper food, just buy in on the world market outside of the EU's external tariff barrier. Also if we end up with US chicken being available it wont be compulsory to buy it.