-
Reducing direct payments could free up £150 million for
the environment and other public goods
-
Agriculture will see transition period of a number of
years to help farmers plan for the future
Farmers, landowners and food producers have
a once-in-a-generation opportunity to shape the future of English
farming and the environment, with a consultation launched today
(27 February) by Environment Secretary .
The government’s proposals will see money
redirected from direct payments under the Common Agriculture
Policy (CAP), which are based on the amount of land farmed, to a
new system of paying farmers “public money for public goods” -
principally their work to enhance the environment and invest in
sustainable food production.
Other public goods which could be supported
include investment in technology and skills to improve
productivity, providing public access to farmland and the
countryside, enhanced welfare standards for livestock and
measures to support the resilience of rural and upland
communities.
In line with its manifesto commitment, the
government will continue to commit the same cash total in funds
for farm support until the end of this Parliament in 2022.
It has today set out proposals for an
‘agricultural transition’ lasting a number of years beyond the
implementation period during which direct payments would
continue, providing stability and certainty for farmers as they
prepare for the new system.
At the same time, however, reductions to
direct payments to the largest landowners first could free up
around £150 million in the first year of the agricultural
transition period, which could be used to boost farmers
delivering environmental enhancement and other public
goods.
The Environment Secretary said:
“As we leave the EU, we have a historic
opportunity to deliver a farming policy which works for the whole
industry. Today we are asking for the views of those who will be
affected to make sure we get this right so any future schemes
reflect the reality of life for famers and food producers.
“The proposals in this paper set out a range
of possible paths to a brighter future for farming. They are the
beginning of a conversation, not a conclusion and we want
everyone who cares about the food we eat and the environment
around us to contribute.”
While stating the agricultural transition
will last a number of years beyond the implementation period, the
consultation launched today asks respondents for their views on
exactly how long it should last.
As set out by the Secretary of State at
the NFU
Conference last week, the consultation is an
opportunity for farmers to be more central to government thinking
than any time for fifty years as the UK leaves the EU.
Among the range of proposals put forward by
the government in today’s consultation, Health and
Harmony: The Future for Food, Farming and the Environment in a
Green Brexit’, the Government is seeking views
on:
- Options for how to gradually phase out direct payments,
starting with the largest landowners, whilst developing a new
environmental land management scheme.
- The range of public goods that could qualify for government
funding under the new schemes, such as high animal welfare
standards, wildlife protection, public access, and new
technologies
- Measures to move away from heavy handed enforcement which
penalises farmers for minor errors, including a more efficient
inspection regime to uphold important environmental and animal
welfare standards
- New business models and incentives for industry to invest in
innovation and new technologies to increase their profitability.
The current system of support for farmers
and landowners shaped by the CAP is inefficient and inequitable.
It does not secure the public goods needed to enhance our
environment such as resilient habitats, richer wildlife,
healthier rivers and cleaner water.
Farm payments in 2019 will follow the
existing model, and in the meantime, the government has pledged
to simplify applications for farmers wishing to enter into
existing schemes to provide environmental benefits such as
Countryside Stewardship.
The consultation will run for ten weeks,
closing on 8 May 2018.
Notes to editors
1. The consultation
proposes phasing out Direct Payments and suggests a number of
options, including progressive reductions to farmers’ payments,
with higher percentage reductions applied to amounts in higher
payment bands, a cap to the largest payments, or else a different
cap or reduction to some payments.
2. A cap of the largest
payments could, for example, be applied at £100,000 which would
affect around 2,100 farmers (2% recipients). The
progressive reductions option could, in the first year of the
agricultural transition, affect around 19,000 farmers (22% of
recipients). Of these, 13,500 would face a payment reduction of
less than £5,000 and around 3,000 of the farmers with claims
worth over £200,000 would face a payment reduction of over
£75,000. Both of these options could raise around £150 million in
the first year.
3. The consultation seeks
views on these options, and whether different threshold and
reduction percentages could be adopted, as well as other
options.
