According to the leading British agricultural cooperative Fram Farmers from Suffolk, Brexit could lead to the fact that farmers will have to pay more for the necessary resources, which will increase their costs.

Fram Farmers cooperates with more than 1,200 farmers across the UK, buying essentials for them and selling their grain. The cooperative fears that the loss of farm subsidies will lead to a reduction in the farmers market, which in turn may result in a consolidation of the supply sector.

While a smaller market can usually lead to fierce competition, Fram Farmers CEO Richard Anscombe warned that in reality the result could be supply and marketing contracts that at first glance look attractive, but are actually uncompetitive and difficult to implement.

Farmer cooperative membership will be one way to overcome these pitfalls, says Richard Anscombe.

“After Brexit, agricultural enterprises will have less money,” said Fram Farmers CEO.

However, Richard Anscombe believes that the best days for British farming cooperatives are yet to come.