Agriculture Bill rules to phase out UK farm subsidies by 2027


The government’s long-waited Agriculture Bill has outlined plans to phase out farm subsidies in England over the next seven years, ending in 2027.


A brand new system of ‘public money for public goods’ will be replacing the current eu farm subsidies strategy and has a major focus on rewarding farmers who implement and undertake environmental measures on their sites and within their work. So far however, there has been no guarantee or confirmation that this new method will offer the same money which is currently being offered to farmers under the direct payments scheme. Plans to introduce the new system into the UK once it has left the European Union are also being proposed to Parliament.


Farm subsidies seven-year transition

The Agriculture Bill has suggested that farm subsidies direct payments made in 2019 and 2020, will be highly similar to ones being made now, but are subject to simplifications where the government sees fit to do so. However from 2021, the direct payments made to farmers will begin to be phased out, with the aim to completely abolish farm subsidies in the UK by 2027. Michael Gove has commented on the Agriculture Bill, saying that its introduction “is a historic moment” as the country prepares to leave the European Union and transition to a “brighter future for farming.” Over the seven-year transitional period, the government has said that the direct payments will become “delinked” from the requirement to farm land. These plans mean that farmers can use their current UK farm subsidies and future ones to invest into farming and their businesses, create new job opportunities, make changes or improvements to their current land or else retire from farming and make way for new entrants into the industry. Although the majority of UK farmers will face some cuts in their payments, farmers who currently receive the highest payments will see the biggest reductions initially. These reductions will free up money which can be invested into public goods, the government says.


New system for farming UK

Replacing the current direct payments method will be a brand new system that allows farmers to be paid for ‘public goods’ – such as good water quality, better air, healthy soil and higher animal welfare standards. Other examples of public goods include access to the countryside and specific measures taken to reduce flooding. A new Environmental Land Management scheme is due to begin next year which will work with the farmers to design, plan and trial this approach. The system will also be supported by other measures designed to increase productivity and encourage farmers to invest in newer technologies. Funding will be awarded to farmers who work with research projects for important topics such as sustainable farmings and soil health.


G Herbert Banks

Here at G Herbert Banks, we are proud to be specialists in payment schemes and environmental stewardships. We can offer you expert advice and services to ensure that your farming business stays thriving and does not falter due to any government changes being made. If you would like to find out more information on how we can help with farm subsidies then visit our website today. Alternatively, you can call 01299 896968 to speak to a member of our experienced and helpful team.


If you have found this blog helpful, you may wish to read our previous blog on Compensation for Land Owners.


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