UFU welcomes £3billion in support for UK farmers

Ivor Ferguson made the comment after the Chancellor Sajid Javid confirmed the cash will be used to support farmers once the UK leaves the EU next year, allowing them to plan for the future, sow their crops and care for their livestock with confidence.

A Government statement said the UK will leave the Common Agricultural Policy (CAP) Direct Payments scheme, which supports farmers across Europe with subsidies in 2020. This will be replaced by a new system based on public money for public goods.

The cash injection will allow the funding for Direct Payments for 2020 to continue at the same level as 2019 and supplement the remaining EU funding that farmers will receive for development projects until 2023 at the latest.

“We will guarantee the current annual budget to farmers in every year of the Parliament,” the statement added.

It is in addition to the £216 million of funding awarded since the Spending Round to support the farming sector in Scotland and Wales.

Chancellor of the Exchequer, Sajid Javid, said: “When we leave the EU and are freed from the Common Agricultural Policy, we will be able to support our vital rural communities – who are a cornerstone of life in the UK – with a fairer and less bureaucratic system.

“Farmers can enter the New Year with confidence that they have our backing and will be able to thrive after Brexit.”

Environment Secretary, Theresa Villiers, said: “Outside the EU we will have a simpler, fairer funding system – one that rewards farmers for enhancing our environment and safeguarding our high animal welfare standards.

“We are committed to making sure our rural communities feel the benefits of Brexit and will ensure our farmers get a better deal.”

The CAP is an EU policy that provides financial support to farmers in Member States. The Direct Payments scheme forms the majority of spending under the CAP and provides subsidies to farmers based on the area of land under management.

The funding announced today will be available from late 2020, as in previous years.

The UK Government will therefore provide £2.852 billion of support, topping up the remaining EU funding, and matching the total funding for Direct Payment available for 2019. This will provide certainty for the rural economy.

The funding is spread across two financial years. The allocations for each nation of the UK for 2020/21 are:

- £1,751 million for the Department for the Environment, Food and Rural Affairs;

- £449 million for the Scottish Government;

- £231 million for the Welsh Government; and

- £279 million for the Northern Ireland administration.

And for 2021/22:

- £92 million for the Department for the Environment, Food and Rural Affairs;

- £24 million for the Scottish Government;

- £12 million for the Welsh Government; and

- £15 million for the Northern Ireland administration.

Commenting on the HM Treasury announcement Ivor Ferguson said: “With the UK set to leave the EU on 31st January 2020 this announcement, which delivers on the commitment made by the Conservatives in their election manifesto, is welcome news. It gives farmers some much needed certainty in relation to direct payments, which are crucial for many farm businesses and help ensure the production of the affordable, high-quality food consumers demand.

“Further to this commitment, it is essential Northern Ireland’s share of UK funding is maintained, and that we have the ability to regionalise agricultural policy. Farming in Northern Ireland is very different to farming in the south of England and regionalisation will ensure that the delivery of this funding best suits the differing needs and structure of our industry here.

“As the Brexit process progresses, it is vital that NI’s competitiveness in the all-island economy is maintained. The level of support payments given to agriculture in the Republic of Ireland must be tracked and matched.

“The Government must also deliver on its guarantees that NI will still have unfettered access to the GB market post-Brexit. Quick progress must also be made on one of the Conservative party’s other key manifesto commitments - encouraging the public sector to buy local to support our farmers and reduce environmental costs.”

The UFU says it is seeking urgent clarity around the specifics of this announcement and will continue to press MPs and government officials for a longer-term funding commitment to farming.