The general election has delivered a hung parliament and more unwelcome uncertainty for East Anglian farmers – but the industry is keen to find the positives. CHRIS HILL reports.

Eastern Daily Press: Norfolk NFU chairman Tony Bambridge, managing director of B&C Farming at Marsham. Picture: Brian Finnerty / NFUNorfolk NFU chairman Tony Bambridge, managing director of B&C Farming at Marsham. Picture: Brian Finnerty / NFU (Image: Brian Finnerty / NFU)

Many might have hoped that at least some of the uncertainty facing farmers would have been resolved after the general election.

But the result of a hung parliament has left many questions still unanswered for an industry which will be hugely affected by the next government's stance on Brexit, trade deals, migrant workers and support payments.

Without a clear majority, and with some stark differences between the parties' manifesto pledges, it is not yet clear what compromises may be needed to pass legislation, or what a change of political direction from a divided parliament could mean for a post-EU British agricultural policy.

But while uncertainty is a concern for any business, East Anglian farming leaders said there could be some silver linings.

Eastern Daily Press: Andrew Fundell, parter at the Norwich office of Brown & Co.Andrew Fundell, parter at the Norwich office of Brown & Co. (Image: Brown & Co)

Tony Bambridge, managing director of B&C Farming at Marsham, and also a tenant farmer at Park Farm in Blickling, is the Norfolk chairman of the National Farmers' Union (NFU)

The NFU's pre-election demands included prioritising trade agreements that deliver 'frictionless, tariff-free trade' with the EU, and a food policy that ensures farmers can compete with other countries, while supporting the environment and funding innovation and science.

Mr Bambridge said the loss of Theresa May's majority could mean a softening of her approach to Brexit.

'I am disappointed that we don't have a majority government,' he said. 'A hung parliament is not healthy for the country.

Eastern Daily Press: Ormesby farmer Richard Hirst. Picture: James BassOrmesby farmer Richard Hirst. Picture: James Bass (Image: Archant Norfolk � 2014)

'I think strong opposition is something that is good for the country but we still want a government that can make a decision and move forward. I don't think it is a good place to be, but we are where we are.

'If you are trying to draw some positives out of it, we are perhaps less likely to have a hard Brexit. It is going to be more of a soft-boiled Brexit.

'If, through our trading pact with the EU, we shared the same tariff barriers as the rest of Europe then it possibly puts the industry in a better position than a hard Brexit. With a small majority and many opposition MPs and Conservative MPs being 'soft Brexiteers', I think a hard Brexit is less likely to get through.

'Staying within the single market and enjoying the opportunity to trade in the single market and the protection that will give us – instead of random trade deals across the world that would potentially open our markets up – is potentially a positive. But only time will tell.'

Another possible upside to the election result is that uncertainty will damage the strength of the pound – making imports more expensive and boosting farmers' competitive ability to export and supply the domestic market, according to agri-business advisers.

Andrew Fundell, a partner in the agricultural business consultancy at Brown and Co in Norwich, said: 'The markets clearly didn't foresee this, as is shown in the devaluation of sterling. That will give a short-term increase in commodity prices and those with 2016 crops still in store might think now is the right time to sell it.'

Mr Fundell said the election result also put a question mark against Tory manifesto commitments such as the pledge to preserve farm subsidy and support funding at its current EU-funded levels until the end of the next parliament.

'All this does bring an element of uncertainty back into the industry where people were assuming a Conservative majority, and they were undertaking that government support for farming will continue in the next parliament,' he said. 'That is no longer guaranteed any more than anything else, until we know who will form the government and what compromises will need to be made.

'The farming industry needs to work with any coalition to make sure there is a fair deal for UK farming. I don't think agriculture will be right at the top of the agenda, but it is our job to make people aware that we are here.'

WORKFORCE CONCERNS

One of the most immediate jobs for the new government must be to develop a scheme to ensure a reliable supply of seasonal workers after Britain leaves the EU, said farmers.

Richard Hirst, who runs a mixed farm at Ormesby, near Great Yarmouth, hosts up to 250 seasonal workers, many from eastern Europe, during the peak season to help with picking and packing of vegetables and salad.

He said: 'One assumes that the election has stopped any further progress on a scheme to bring agricultural workers here. We used to have a fantastic scheme called SAWS (Seasonal Agricultural Workers Scheme) where people came in on a permit and worked for a certain length of time and then went home.

'What we as an industry are asking for is a son or daughter of SAWS which recognises our need for seasonal workers. The workforce is just not there in this country.

'If we assume that Brexit happens in March 2019, and free movement of labour is going to stop, we need a scheme in place by this autumn that will allow people to come in next year.

'It is not just for our industry – it also applies to health and the NHS and we need to make sure we are not left behind. The NHS is extremely important, but so is our industry.'