British farmers are holding back on big investments as they brace for the UK’s exit from the European Union, their largest market and a vital source of subsidies.
Agriculture enjoyed a brief boost after Britain voted to leave the EU last June, when a weaker pound lifted profits by about 12% and subsidy payments by roughly 15%.
UK food and drink exports rose nearly 10% to a record £20bn in 2016, according to Defra.
But while more cash on hand usually spurs investment, farmers have become cautious as the benefit of the weaker pound fades and lifts the price of imported inputs such as fertiliser.
(Source: Manitoba Co-operator)