THERE can be no doubt that the political fallout from the Brexit vote will continue on both sides of the Scottish Border and on the Continent for some time, however the initial reaction has proved favourable for agriculture and particularly for exports, following the fall in the value of sterling.
As The Scottish Farmer went to press on Wednesday, sterling was at its lowest level against the dollar since 1985 and the euro was battering at the 1:20 barrier. 
In fact, the majority of major currencies were at record highs against the Pound, hence UK exports are somewhat cheaper on the continent and most other countries.
The sheep trade has been buoyed as a result, with the early centres of this week witnessing significant price rises for ewes and lambs, and, with more sold. 
On Monday, many Scottish markets averaged in excess of £2 per live kg for lambs with ewes showing improvements anywhere between £5-£20 per head.
At St Boswells, an additional 29% more lambs were sold than the previous week, with 1195 head averaging 201.4p per live kg, which was up 20p per kg. The 231 ewes cashed in at £74.48, up £7.03.
The best of the day’s trading in Scotland was seen at Ayr, where 1373 lambs – a 114% increase on the week – levelled at 205.3p (+13p), while 447 ewes averaged £88.36, up £18.58 with 135% more.
“The fall in the value of sterling definitely helps exports, but we also have the run up to the end of Ramadan and the festival which follows,” said Alastair Brown, sheep auctioneer with Craig Wilson, Ayr.
“Our lamb trade was 52.5p per live kg ahead of the corresponding sale in 2016 and some of the ewes were £20 per head up on the week, but how much of that increase is down to the devaluation of sterling or stock piling for next week’s festival, is difficult to say,” Mr Brown added.
It was a point echoed by Stuart Ashworth, chief economist at Quality Meat Scotland, who said that, despite the Brexit vote, the key features which influence exports, ie exchange rates and consumer interest remain.
“Lamb prices usually rise 2-3p per live kg the week before the end of Ramadan as the sector stock piles for the immediate muslim festival which follows, but this year we have seen prices rise a bit more which does suggest the weakening of sterling has had some influence,” he said.
Mr Ashworth also added that farmers have time to prepare for the actual Brexit, as the UK has two years to sort out an actual exit date and until then, the main EU farm payment schemes and the red tape that goes with them should remain unchanged.
“My understanding of Article 50 is that the UK has two years to negotiate future trade agreements with Europe, therefore, the only thing affecting trade until then are exchange rates and consumer demand. 
“The good thing with a week pound is that our products become more competitively priced in Europe which should help stimulate demand. The unknown is to what extent our European counterparts could decide to write off UK products.
In addition, he said that if the Euro continues at its present value of 83p, next year’s support payments will be higher.
Archie Hamilton, auctioneer at the UK’s largest sheep market at Longtown, was also confident for the future. “Our sale last week on the day of the Referendum averaged 202p per kg, which was a good 35p per kg up on the year and ewes were up £5-£7 on the week and the trade should be good again this week. 
"A weak pound is always good for exports,” concluded Mr Hamilton.