Victoria Ivinson

As part of Brexit, the Basic Payment Scheme is being phased out between 2021 and 2028, meaning farmers could lose between 50-70% of their subsidy by 2024. Deeper cuts and further changes will also continue well beyond 2024.

Victoria Ivinson, head of the agricultural team at Douglas Home & Co, said: “For many farmers, these subsidy payments prop up the business.

“Our estimate is that at least 50% of farmers could see their profit wiped out. While most may break even, many will be running at a loss once the subsidies are cut. That is a horrifying prospect.

“At the moment, this money is essential to help them smooth out the challenges posed by major weather events, fluctuations in yields and grain prices and many other unpredictable variables.”

Douglas Home & Co has decades of experience advising farm businesses. More than 1,000 of its 3,1000 clients operate as rural businesses.

Ms Ivinson, whose husband is a beef and sheep farmer in Penrith, Cumbria, added: “We are entering a decade of massive change across farming and the rural economy. Brexit, climate change and major labour shortages are already causing sleepless nights.

“Yet subsidy cuts are an even bigger threat to survival, particularly for those with no other income stream or alternative financial support. Frankly, some farmers are terrified.”

The accountant said many farmers are overawed by the complexity of the replacement system, which has not yet been fully fleshed out or explained by the UK government. Regulations also differ slightly between Scotland and England, however all UK farmers face similar prospects.