FARMERS too reliant on EU subsidy payments are being urged to consider their business resilience as Brexit looms.

Simon Britton, partner at George F. White land management consultancy, said during a debate at this year’s Great Yorkshire Show that farmers needed to be prepared for higher prices, shortages of labour and volatility of currency, as well as significantly reduced subsidies.

Mr Britton said: “Looking at the recent Farm Business Income Survey, the average profit for a farming business in the North-East over the last five years has averaged £57 per acre, with farmers receiving £80 per acre over the same period from subsidies.

“Farms across the region need to be able to operate in a reduced subsidy environment, especially in light of new agricultural policy the Government is currently championing, to future-proof their stability and, frankly, their survival.”

Defra minister George Eustice is on record as saying that farmers’ work in relation to the environment and community benefit would be key to government support.

Mr Britton said: “Although we understand that farm subsidies are protected until 2022, my advice to farmers would be to utilise this time frame to fundamentally understand their business.

“This includes preparing management accounts which will highlight farm income streams and to what degree their businesses are reliant on grants and subsidies.

“Farmers need to start moving their business away from too much dependency on subsidies, perhaps looking at how they can diversify their core business to de-risk themselves from the Brexit effect.”