Talk of EU referendum in Britain worries farmers

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Published: January 15, 2015

OXFORD, U.K. (Reuters) — A referendum on European Union membership is the biggest threat facing British farming, says the cabinet secretary responsible for agriculture in Scotland’s parliament.

“Westminster’s in-out referendum on the EU is a 20 billion pound gamble ($36 billion) with the future of Scottish and British farming,” Richard Lochhead said at the annual Oxford Farming Conference.

Britain’s Conservative Party, the leading partner in the current ruling coalition, has said it will renegotiate the terms of EU membership if it wins a general election to be held in May and then hold an in-out referendum before the end of 2017.

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“The stakes are high, especially for Scottish farmers and crofters for whom CAP (the EU’s Common Agricultural Policy) support is a vital lifeline,” said Lochhead, who belongs to the Scottish National Party.

He estimated direct EU support for British farmers was worth $36 billion during the current 2014-20 CAP period.

“It is more difficult to make a living from the land in Scotland, of which 85 percent is classified as Less Favoured Area, and we have a predominance of livestock sectors which often face the biggest challenges in terms of profitability.”

George Eustice, Britain’s junior farming minister, said it was important to have a renegotiation and referendum.

“Those who say you shouldn’t have a referendum because people might want to leave have got to have a little bit more confidence in our democracy,” said Eustice, who is a Conservative.

“I think the right thing to do is carry out a renegotiation, get them to return some powers, go to the country, get a mandate and settle this debate once and for all.”

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