THERE will be many in the farming community who will feel a sense of relief at the outcome of the general election. A Conservative government is generally welcomed by the rural community – in England at any rate.

However, a Conservative administration with an overall majority in this instance brings with it the uncertainty of a referendum on EU membership. The consequences of a vote to withdraw would have far-reaching consequences for UK farmers and rural communities.

Ahead of the referendum David Cameron will attempt to renegotiate the UK’s current relationship with the EU. While those negotiations are not expected to include discussion about the Common Agricultural Policy, the Conservative party manifesto did include CAP reform as a general aim. Given the UK’s long-held position on reducing direct payments, that’s not something that will fill many farmers with joy. The uncertainty on this issue – and what would follow a vote to leave the EU - is enormous and will need extensive debate and explanation before the referendum.

While that is the biggest strategic issue facing the industry, the most immediate and pressing issue for Mr Cameron’s farming ministers is the Basic Payment Scheme. Can they, bolstered by the arrival of Cumbrian MP Rory Stewart, ensure that the scheme is delivered as smoothly as possible following the recent problems? Part of the solution here would appear to be sufficient resources for the Rural Payments Agency – difficult as the government seeks to fulfil a key manifesto commitment to reduce the deficit through further departmental spending cuts. The Defra budget is vulnerable.