FARMERS in the South West are being warned of ‘economic shock’, as research by the Countryside and Community Research Institute (CCRI) predicted that the rural economy would lose up to £883 million between now and 2027. This was attributed to financial discrepancies in the transition from the support received from the Common Agricultural Policy to the replacement Sustainable Farming Initiative.

The report was undertaken by CCRI at the University of Gloucestershire with support from the National Innovation Centre for Rural Enterprise. The report suggested that with the rural economy having up to £440 million less to spend on materials and services, there will be a significant knock-on for all South West jobs and businesses.

The report found that Devon and the South West’s rural economy is particularly vulnerable to the financial impact of the transition, as many of the local farms are often tenant farms that are small, family-run. With farming being a significant driver for the region’s economy, the predicted impact on the sector’s supply chains, producers, suppliers, business owners and workers is widespread.

Chris Short, Associate Professor at the CCRI and lead researcher on the report, said: ‘The impact of the transition on the South West’s agricultural sector and wider rural economy should not be underestimated.

‘Many farms in this region are typically small, family businesses, particularly vulnerable to a loss of support. This funding is disappearing, just as living and business costs are rising sharply across the country.

‘Any reduction in spending at the farm level will have a direct impact on the wider rural economy. The impact of these changes will also be felt far beyond the farm gate.’