Three-quarters of Scottish farmers haven’t undertaken any business planning around Brexit and more than half think the UK’s exit from Europe will have a negative impact on their business.
A survey of 689 producers by NFU Scotland (NFUS) also revealed 51% are putting off new investments, 35% are postponing expansion plans, and 54% have experienced increased input costs as a result of Brexit.
When asked about life after Brexit, 77% said they anticipated increased input costs, 51% said they expected difficulty with exports and 22% predicted problems in recruiting and retaining staff.
“Three years of frustrating to-ing and fro-ing on Brexit, with no clear political outcome or direction, have deeply eroded confidence and left many of our members in a hole not of their making,” said NFUS president Andrew McCornick, announcing the survey results at the Royal Highland Show.
“Brexit has already had an impact on many businesses through increased costs and the postponement of planned new investments while respondents are budgeting for a significant increase in input costs post-Brexit.”
He said the resilience of the sector was evident in the survey with the majority confident about business longevity after Brexit, however 36% lacked confidence in the future.
“In a week when a Scottish Government poll saw 90% of the Scottish public recognise that farming is vital to economic growth, there would be far-reaching consequences for the delivery of goods in the national interest were farming allowed to slip into decline,” added Mr McCornick.
“We need direction on policy and a commitment to future funding. Scottish Government and Westminster must wake up to the fact that people are making business decisions in a vacuum.”
A Scottish Government spokesman said: “The results of the survey are shocking.
“Brexit is clearly having a massive impact on livelihoods but farmers need to grasp the nettle and take steps for their own businesses.”