The Agriculture and Horticulture Development Board (AHDB) has launched a ‘Brexit Impact Calculator’ to help the farming industry assess the potential impact of the UK’s exit from the EU.
The online tool is expected to help farmers and growers review their business performance and “remain fit for the future”. With the calculator, they can input data to see what effect different scenarios might have on their business.
The tool allows farmers and growers to assess three potential scenarios; the first one being a full and comprehensive free-trade agreement with the EU where support payments stay at the current level, while the second scenario envisions a no free-trade agreement with the EU but the UK unilaterally lowers all agricultural tariffs to zero. Level of support is reduced by 50% and permanent labour costs rise.
The final scenario predicts the impact of a no free-trade agreement with EU where the UK adopts current EU tariff levels on all agricultural trade. The level of support here is reduced by 75% and permanent and casual labour costs rise.
Tom Hind, AHDB chief strategy officer, said: “Tremendous uncertainty still surrounds the outcome of Brexit negotiations. Nonetheless we believe it’s important that businesses make conscious, proactive and strategic decisions to be fit for the future.
“Last year, we analysed how a range of Brexit scenarios could impact on different farming sectors. Feedback from farmers and growers has indicated that many are unsure how the different scenarios might affect them, so we have now produced a tool to help them better understand what Brexit could mean for their bottom line.”