While the weakening pound has been bad for Irish exports and hence farmers, it has been positive for UK farming, according to Graham Redman of Andersons Farm Business Consultants. He said there is a strong co-relation between the euro-sterling exchange rate and UK farm profitability.

As farmers’ subsidies are calculated in euro and then converted into sterling each September, the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland, shows that CAP payments to Northern Ireland farmers increased €39m, or 18%, in 2016 as a result of the weaker sterling.

The weakening of sterling since the Brexit vote has supported UK domestic prices

However, the most important benefit of a weak pound is the boost it gives to the UK’s agri-food exports. With the majority of UK food sent to the EU, a weak pound makes these exports more competitive and makes food imports to the UK more expensive.

Redman said the weakening of sterling since the Brexit vote has supported UK domestic prices. Commodities will rise in price first as they are only priced at the point of sale, so the response to currency fluctuation is instant. The impact for the cost of inputs is delayed as these are priced for a period of time and hence profits rise.

Read more

Full coverage: Navigating Global Trade conference