DOES THE DEAL SIGNAL A WIDER CHANGE FOR UK FARMING?

The Australia deal is the first agreement to be built from scratch since the UK left the EU (others simply rolled over the UK’s existing EU deals). The NFU and other farming organisations fear this FTA sets a precedent and gives Britain a potential entry into the Comprehensive and Progressive Agreement for TransPacific Partnership, of which Australia is a member.

This could see similar deals struck with other nations, such as the US and Mexico, and major beef producers, such as Brazil.

In the post-Brexit world, subsidies that UK farmers enjoyed under the EU’s Common Agricultural Payments (CAP) system are being phased out and replaced by a concept of ‘public money for public good’. Details have yet to be published but this would include payments to incentivise farmers to farm in ways that secure better air and water quality, higher standards of animal welfare and implement measures to curb flooding.

Some argue this approach is incompatible with large-scale food production and may mean the UK must import more to feed the nation. “People seem to think that if we decide to hug more trees we will produce more food, but we won’t,” says economist Sean Rickard. “The Australia

FTA is a template for other deals in the pipeline with countries that are major food exporters and you can be sure they will insist on and get access to our market. The significance won’t be seen instantly but within 10–15 years this will lead to a slimmed-down UK farming sector.”