Agricultural policy must remain devolved - UFU

The Ulster Farmers’ Union (UFU) has submitted its response to the UK government’s consultation on ‘subsidy control – designing a new approach for the UK.’

As the UK is no longer an EU member state, there is now an opportunity to create a subsidy control system that delivers essential benefits but reduces the adverse effects.

UFU president Victor Chestnutt said: “Following the end of the transition period on 31 December 2020, the UK now has the freedom to design a new domestic subsidy control regime, that reflects strategic interests and particular national circumstances.

“Subsides are of fundamental importance to the agri-food industry and the UFU have responded to the UK government’s consultation on a new approach to subsidy control, to help shape a much-needed system.

“We recognise that the UK government wants a subsidy control system that strikes the right balance between allowing the benefits that can be obtained from subsidies, while limiting the most harmful impacts.

“The UFU supports the objectives for the future subsidy control regime - facilitating interventions to deliver on the UK’s strategic interests, maintaining a competitive and dynamic market economy, protecting the UK internal market and acting as a responsible trade partner.”

The Northern Ireland (NI) and UK agriculture sector currently receives a range of financial support which are vital to promoting the delivery of affordable food produced to the highest production and environmental standards.

The agriculture sector also supports wider rural development and social benefits, while helping to mitigate adverse effects of significant economic and environmental impacts.

The UFU president continued: “Agricultural support has, over decades, delivered an array of public goods and other benefits in the public’s interest.

“NI and UK agriculture face unique challenges compared to other sectors, such as volatile weather and natural constraints that directly impact farming families’ productivity and profitability.

“However, unlike other sectors within the UK economy, with long production cycles it’s often very difficult to mitigate against such variables in ways available to businesses in other sectors through investment in infrastructure, capital and alternative technology or input substitution.”

The UFU aims to ensure that agricultural support payments can continue at the current levels. This would guarantee that UK nations have maximum flexibility to develop a future support policy tailored to their own specific circumstances and that distortions to the UK internal market are minimised. 

Mr Chestnutt further explained: “It’s in no-one’s interest to create a situation whereby each administration tries to outdo the other as to who would provide the most support, or the most trade distorting support. It’s important that the contents of the NI Protocol are taken into account, particularly Article 10(2), which places limits on the amount and type of agricultural support in NI to minimise distortions to the UK internal market.”

The UFU is clear in its view that agricultural policy must be devolved to reflect different needs and circumstances.

He concluded:“NI must remain in charge of its own spending decisions. The UK government must create a subsidy control regime with the devolved administrations which works for the whole of the UK.”