The big speech by British prime minister Theresa May on Brexit in Florence last Friday provides a small piece of good news for farmers. For the first time the British government has indicated it will ask the EU for an extension to the time allocated to negotiate Brexit.

This means business as usual in terms of accessing the UK market until March 2021, provided of course that the remaining 27 EU member states are agreeable to this request. In that case, the weanlings sold this autumn will have the same market opportunities when they go to the factory in the late spring of 2019 as today's finished cattle.

Mood

In a speech that was thin on detail but positive in tone, the British prime minister fought a major battle on two fronts. The external battle is to get the EU seriously engaged in discussions. She is hoping that an indication that the UK will pay its way in this extended period will give satisfaction to the EU on the money front.

However, the EU is notorious about detail and process. It was interesting to note that, in his response, EU lead negotiator Michel Barnier (pictured) welcomed the speech's constructive spirit but went on to emphasise the demand for specific detail and concrete proposals in this week’s negotiations.

What is at stake

If the EU27 are persuaded to extend the withdrawal period until March 2021, it will create a window of opportunity to negotiate what shape of future relationship will replace EU membership for the UK. This debate is still going on within the UK government. The delay in negotiations to date is caused by the UK government not having a united position on what type of relationship it wants.

Irish farmers and indeed UK farmers have an interest in the closest possible trading relationship between the EU and UK post-Brexit

Business and trade unions in the UK are united on wanting a close relationship with the EU post-Brexit, which in effect means staying with the customs union and even the single market.

However, for many in government, including Boris Johnson and Michael Gove (whose department includes agriculture and several others), the ambition is to cut off all existing structural relations with Brussels and start afresh to negotiate trade terms. This is against a backdrop of the EU being adamant that the UK cannot enjoy better conditions outside the EU than it did inside.

What it means for farmers

Irish farmers and indeed UK farmers have an interest in the closest possible trading relationship between the EU and UK post-Brexit. That means at least the UK remaining part of the customs union.

Irish farmers would lose out under any other scenario. WTO tariffs would make Irish beef and cheese prohibitively expensive in the UK. Similarly, if the UK was to throw open its doors with low or zero tariffs on imports, Irish product would get squeezed out by South American imports.

Farmers in the UK would lose on sheepmeat exports. Even though the UK is a net importer of beef, parts of the carcase processed in the UK are better sold in continental markets.

The Florence speech indicates a willingness by the UK to take more time in shaping its longer term relationship with the EU when it leaves. Irish farmers will be hoping it is one that retains as much of the status quo as possible, and the extra time will enable this debate to take place.

Read more

Full coverage: Brexit