Could Johnson hand farmers a £500million No Deal bailout?

BORIS Johnson is considering a £500million farming industry bailout if a No Deal Brexit cuts off access to European markets.

It came after the PM was accused yesterday of ‘playing Russian roulette’ with the sheep farming sector, which exports 40 per cent of its output to the EU.

Welsh farming groups have warned of ‘civil unrest’ if he presses ahead with No Deal, which would lead to the imposition of 40 per cent tariffs on lamb exports, effectively killing the market.

But speaking on a visit to a poultry farm near Newport, Mr Johnson insisted he was focused on trying to achieve a new agreement, saying: ‘We are not aiming for a No Deal Brexit and I don’t think that’s where we are going to end up.’ But he acknowledged that British agriculture would need support in the event of No Deal and said ministers were already working on a package of financial support.

‘We’ll make sure they have the support they need,’ he said. ‘If their markets are going to be tricky, then we will help them to find new markets. We have interventions that are aimed to support their incomes.’

Mr Johnson is considering proposals drawn up by Michael Gove, the former environment secretary who is now in charge of Whitehall No Deal planning, the government would agree to buy excess lamb and beef at the point of slaughter at a pre-determined price.

The commitment is expected to cost the Treasury about £500million a year and could also cover some arable crops.

But farmers’ leaders fear that leaving the EU without a deal would wreck parts of the sector.

Helen Roberts, of the National Sheep Association in Wales, called on Mr Johnson to ‘stop playing Russian roulette with the industry, which he appears to be doing at the moment’. Asked about the possibility of civil unrest among sheep producers, including roadblocks and tractor protests, she told BBC Radio Four’s Today programme: ‘I think they will, I think it’s time to come and stand up for ourselves and be counted.’

Welsh First Minister Mark Drakeford, who held talks with Mr Johnson yesterday, said Brexit would be ‘catastrophic for Wales’.

He added: ‘It will decimate our agricultural and manufacturing sectors and risks ripping the union apart,’ he said. ‘The PM must stop playing fast and loose with our country.’

But Welsh Secretary Alun Cairns pointed out voters in Wales had backed Brexit in the referendum. He suggested farmers could look to new export markets such as Japan, although critics pointed out that Tokyo has not yet agreed to roll over the benefits of its trade deal with the EU to the UK after Brexit.

‘Playing Russian roulette’