Farmers receive Brexit boost as Javid pledges £3bn from Treasury to plan for future

The Chancellor said the cash will allow rural businesses and communities to plan for the future, sow their crops and care for their livestock with confidence after the departure from the bloc scheduled at the end of next month. Britain is due to formally leave the EU’s Common Agricultural Policy (CAP) when the country’s Brexit transition concludes next December, ending direct subsidy payment to UK farms from Brussels. Mr Javid confirmed that the Treasury was stepping in to hand over cash for agricultural development projects instead. It will guarantee payments until 2023. 

Mr 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.” 

NFU Scotland’s president Andrew McCornick said: “With us set to leave the European Union and the Common Agricultural Policy on January 31, 2020, it is essential that the farming industry knows where it stands with regards direct payments. 

“Farm businesses are dependent upon these payments and until we see a fairer redistribution of the share of the profit in the supply chain, direct payments will remain important for all farmers and crafters. 

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“Government commitment to continue to fund direct payments when we leave the EU is welcome. 

“When we meet ministers and MPs in the new year, we will press for a long-term funding commitment for farming and measures that will help farmers secure a fairer share of returns from the supply chain.” 

The cash injection will allow the funding for direct payments for next year to continue at the same level as 2019. 

The Government will guarantee the current annual budget to farmers in every year of the Parliament. 

The cash comes on top of £206million promised in the Treasury’s spending review earlier this year to support the farming sector in Scotland and Wales. 

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. 


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