British farmers must brace themselves for a hard Brexit. By 2020, subsidies can decrease by 20 percent, says the real estate agency Strutt & Parker Agrimoney† Land prices, however, remain stable.
According to the office, farmers have two years in advance of Brexit to get their household books in order. They may also have a hard time in the next five years. There is less support and trade tariffs can change with the risk of cheap imports.
Some subsidy will continue to exist, but it will probably be more focused on nature and stewardship. Farmers should expect a 20 percent decline in payments by 2020 and incomes will most likely continue to fall after that.
However, demand for land remains strong in some areas; prices are not expected to fall sharply. Partly because non-agricultural buyers are less sensitive to agricultural policy. Assuming that the new domestic agricultural policy does provide farmers with some support, it does not look like there will be a sharp drop in land prices in the medium term.
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