It is just over a year since Robert Wood Johnson “Woodie,” the US Ambassador to the UK described the EU as the “museum of agriculture”. The remark was made in a newspaper article he contributed just after the US published its ambitions for a trade negotiation with the UK which commenced this week.

Farm to Fork

The opening of talks with the US coincides with the latest reports from Brussels on progression of an EU biodiversity strategy for 2030 combined with the Farm to Fork (F2F) strategy which is the delivery vehicle for agriculture’s contribution.

The F2F strategy is intended as the pillar for agriculture production in the EU

The basis for this the halving of pesticide and fertiliser use plus an increase in organic farming with 25% of land use dedicated to it. There is an additional ambition to make organic food affordable to a wider range of consumers.

The F2F strategy is intended as the pillar for agriculture production in the EU by the new commission that assumed control at the end of last year. It was originally intended for publication in March but has been delayed because of COVID-19. Notably, it is led by the Health Commissioner, Stella Kyriakides rather than the Agriculture Commissioner though it is expected that it will be the CAP that will fund the incentivising of this policy.

Organic

At a time when the EU is struggling to support agriculture compared to others, farmers will wonder at the drive to bring organic production into the mainstream of EU agriculture. It is particularly peculiar at this time when the world is heading into full-blown recession following COVID-19.

The market for organic produce is at its highest in times of economic prosperity when consumers have disposable income for what might be described as discretionary spending choices. It is also the category that suffers most in an economic downturn.

By choosing not to use fertiliser, pesticides and veterinary medicines, on-farm productivity is reduced and in turn prices have to be higher to compensate

It is also difficult to understand the Commission’s ambition to make organic produce affordable. By choosing not to use fertiliser, pesticides and veterinary medicines, on-farm productivity is reduced and in turn prices have to be higher to compensate. Of course if a large tranche of EU funding was put in place as a subsidy that would achieve the same purpose as higher market prices.

That in turn poses the question about where the money comes from because if it is the CAP budget, it means even less for the rest of farmers unless there is a major rethink on reducing the overall CAP budget.

UK–USA trade negotiations

Meanwhile, the start of trade negotiations between the UK and USA this week will establish the future direction of travel for the UK as it will have to choose whether to maintain EU standards or adopt US standards. The difference is between the prevention principle of the EU or the intervention in the case of the US.

The US has been clear in its stated position as so bluntly expressed by its ambassador to the UK by urging the UK to adopt US standards

Taking livestock as an example, the EU works to prevent any carcase contamination by insisting on clean or clipped cattle prior to slaughter whereas the US uses a chlorine wash post-slaughter to eliminate any contamination that occurred.

The US has been clear in its stated position as so bluntly expressed by its ambassador to the UK by urging the UK to adopt US standards.

Politically, the US will not accept a trade deal with the UK that doesn’t have generous access for agricultural goods produced to US standards.

So far, the UK has been fairly clear about no reduction in standards on leaving the EU

If this happens, then there will be a direct conflict with the EU and a serious limitation on any EU-UK deal, with a high level of inspections being inevitable. So far, the UK has been fairly clear about no reduction in standards on leaving the EU though there is an element of ambiguity around what reduction is. After all, there is no scientific reason why growth-promoting hormones or chlorine wash cannot be used.

Irish farmers exposed

All of this leaves Irish farmers particularly exposed. Any deal with the US is likely to cause displacement of Irish.

On the issue of EU-UK trade, post-Brexit trade talks seem deadlocked and if there is no breakthrough then Irish farmers are faced with trade on WTO terms with horrendous prospects for beef.

When we add the uncertainty over the direction of the next CAP and factor in the consequences of COVID-19, it looks a particularly difficult road ahead for Irish farming. Much of this is beyond our control but what a national government is cleared to do is provide national support.

What farmers need is funding to reflect the current trading conditions in the same way that industry has secured and people not at work have.