FARM BUSINESS confidence levels have nearly doubled in the year since the UK voted to leave the EU, according to a survey conducted for finance company Hitachi Capitals.

Right after last year's vote, only 17% of farm business respondents were upbeat about their prospects, but surveyed again in the first quarter of 2017, 31% expressed optimism, particularly with regard to the promised reduction in red tape – although, of course, that does mean that 69% continue to fear the worst.

But Hitachi's British Business Barometer research was focussed on the apparent improvement since the implications of the referendum result sunk in.

"Despite being faced with further hurdles when the UK eventually leaves such as the subsidy shortages and a loss of labour, the sector is currently optimistic about opportunities that the separation will bring," it concluded.

"At a time when UK farmers have been promised an abolition of the ‘three crop rule’ when we leave the EU by farming minister Andrea Leadsom, and estimates from Defra that dealing with red tape and farm inspections costs the industry £5m a year, nearly a third of small enterprises in the industry would welcome less red tape.

"One in four see further opportunities in UK consumers ‘buying British’ and 24% of SMEs in agriculture see the weak pound as good news for exporting."

Hitachi Capital managing director Gavin Wraith-Carter commented: “Our research shows that small business owners in the agricultural sector are thriving under the anticipation of separating from the European Union. Confidence levels among agricultural SMEs took a dip around the time of the Brexit vote. However levels have now bounced back to higher than those of a year ago with British farmers looking ahead to a fruitful harvest.

“In this case, 52% of agricultural SMEs are able to see the positives in the current climate, be it the weaker pound or a potential reduction of red tape, which no doubt are contributing factors to current levels of confidence," he said.

“We must support our UK producers and empower farmers to be competitive globally through innovation and the adoption of new technologies. SMEs have the ability to adapt quickly when required and what we are seeing overall – whether or not this reflects their own political beliefs – is a drive to make the best of any outcome to the Brexit situation.”

The research was conducted by YouGov among a nationally representative sample of 1213 respondents at the end of January this year.

For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk