EU alignment risks £810m hit to UK farm incomes

Aligning Great Britain’s crop protection rules with the EU’s is set to slash farming profit by up to £810m and trigger steep falls in UK crop production, according to new analysis commissioned by pesticide lobby group CropLife UK.

The report, produced by the Andersons Centre, examined the potential impact of the UK bringing its plant protection product (PPP) regime into line with the EU as part of a common Sanitary and Phytosanitary (SPS) area.

See also: Freer trade with EU likely as SPS deal gathers momentum

In a “cliff-edge” scenario where the UK had to align with EU decisions on plant products with immediate effect in 2027, the research estimated a 3-6% drop in gross value added from UK crop production in the first year alone, translating into a hit to total income from farming of between £500m and £810m.

The study also showed wheat volumes could fall by 9-16%, potatoes by 4-6% and apples by 3-7%.

These reductions would come as a result of the loss of key crop protection tools, including four new active substances, as well as shifts in cropping patterns and increased costs associated with growing certain crops.

Dave Bench, chief executive of CropLife UK, said: “The Andersons Centre analysis is concerning and its findings should be a wake-up call.

“We call on the government to consider all evidence available and to work with industry and grower groups, and to make a deal which protects domestic production and security.”

Underestimates 

According to the report, the figures on income drops and production cuts are likely to be underestimates, as the loss of plant protection products was not modelled for all crops grown in the UK.

It warned that a cliff-edge scenario would make the UK less self-sufficient in food and could lead to higher prices for consumers.

The UK has maintained equivalent legal, scientific and technical standards to the EU since it left the bloc, but decisions on active substance approvals, usage rules and maximum residue levels (MRLs) have diverged over the past five years due to the different considerations of each system.

The research suggested a process of “managed alignment”, where GB regulatory decisions are respected until a new decision is made under a future single regulatory regime, would have the greatest mitigating impact.

“Any loss of crop protection tools through aligning these decisions would not be due to any scientific or safety concerns, but a political choice,” the report said.

It is understood that, at a recent meeting with the Cabinet Office, industry representatives were told prime minister Sir Keir Starmer wanted the flagship SPS agreement with the EU to be implemented by June 2027, with no transition period.

Government stance

In contrast to the CropLife UK report’s findings, Defra says its expects the SPS agreement to significantly reduce costs and delays associated with certification and border checks, and massively benefit the UK economy. 

A Defra spokesman said: “We’re focused on securing a food and drink deal that could deliver up to £5.1bn a year for the UK economy – backing British jobs and helping put more money in people’s pockets.

“SPS deal would slash red tape, cut costs and delays at the border, and lift barriers on a wide range of UK exports to the EU – supporting farmers, producers and businesses across the UK.

“Our negotiations are ongoing, and we’re working with businesses on the ground to shape our approach and make sure they’re ready to benefit as soon as any new arrangements take effect.”