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News Brexit

Pro-Brexit wind by agriculture ministry

30 July 2019 - Niels van der Boom

Boris Johnson, the new Prime Minister of the United Kingdom, has appointed Theresa Villiers as the Minister of Agriculture, Food and Rural Development. Villiers succeeds Michael Gove. 

Michael Gove has been head of this ministry since June 2017, but he is now 'Chancellor of the Duchy of Lancaster'. A feature most Brits don't get the point of. Former minister George Eustice is also joining Defra (Department for Enivornment, Food & Rural Affairs), as the department is called. Earlier this year, he resigned because of the Brexit debacle.

Outspoken about animal welfare
Villiers is known for her controversial statements. She is from the agricultural county of Norfolk, but is not of farming descent herself. In the agricultural field, she was mainly known for her commitment to animal welfare. For example, she focused on limiting or banning the export of live livestock. She also campaigned against the use of cages in livestock farming.

The other positions are at odds with this. She opposes taking action against climate change and voted against a law requiring companies to apply for a permit to extract shale gas (fracking). Other proposals on CO . reduction2emissions and greenhouse gases were also voted against by it.

New policy in the making
Eustice and Villiers are both eurosceptics, staunch pro-Brexit supporters and do not see a no-deal as a disadvantage for the agricultural sector. Most agricultural entrepreneurs do not share this opinion. Eustice will be responsible for drawing up a 'bill' to prepare agriculture for the situation after the break with the European Union.

In 2016 Eustice campaigned among farmers to get support for a Brexit. Grant amounts would not fall, according to his promise. Current government policy, however, shows something different. The plans state that direct hectare support will be phased out from 2021 over a period of 7 years. Just like in the Common Agricultural Policy (CAP), farmers can then receive a subsidy when they take additional measures on their farm.

The UK agricultural sector receives £3 billion (EUR 3,3 billion) annually from the Common Agricultural Policy. It is unclear whether this amount will be maintained in the post-Brexit scenario.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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