THE publication of a new ‘roadmap’ for farming and land management as Britain leaves behind the EU Common Agricultural Policy has been welcomed by the National Farmers Union – but big questions still remain for English farmers over how direct payments will be reduced.

Defra has published its plan for transition, over the next seven years, to the new policies set out in the recently passed Agricultural Bill, in a document called The Path to Sustainable Farming.

The new system, says the Government, will be tailored in the interests of English farmers, and centred on support that rewards farmers and land managers for sustainable farming practices.

By 2028, farmers in England should be able to produce healthy food profitably, without subsidy, whilst taking steps to improve the environment, improve animal health and welfare and reduce carbon emissions.

In 2021 a move away from the Basic Payment Scheme (BPS) to an new Environmental Land Management Scheme (ELMS) will begin.

Direct Payments will be reduced fairly, says Defra.

Responding to the publication of the document, NFU President Minette Batters said: “Defra has embraced many of the industry’s ideas for sustainable farming and food production in designing this new agricultural policy for England.

“Farming is changing and we look forward to working with Ministers and officials to co-create the schemes that will help farmers to improve productivity and animal welfare, encourage innovation and realise our ambition to produce increasingly climate-friendly food.

“However, the rate at which direct support reductions will take place, which we understand will not be applied in other parts of the UK, leaves English farmers with significant questions. These payments have been a lifeline for many farmers, especially when prices or growing conditions have been volatile, and will be very difficult to replace in the first four years of this transition. Can Ministers be sure that new schemes will be available at scale to deliver redirected BPS payments?

“Take livestock farmers for example, who we project will have lost between 60% and 80% of their income by 2024 as a result of these reductions. What changes will Defra make to ensure that the new Environmental Land Management schemes offer rewards that provide a genuine income for their businesses while maintaining food production?

“These are the questions Defra needs to answer urgently, for every farming sector and every part of the country.

“Expecting farmers to run viable, high-cost farm businesses, continue to produce food and increase their environmental delivery, while phasing out existing support and without a complete replacement scheme for almost three years is high risk and a very big ask.”

Environment Secretary George Eustice said that Defra wants farmers to be able to access public money to help their businesses become more productive and sustainable, whilst taking steps to improve the environment and animal welfare, and deliver climate change outcomes on the land they manage.

“Rather than the prescriptive, top down rules of the EU era, we want to support the choices that farmers and land managers take. If we work together to get this right, then a decade from now the rest of the world will want to follow our lead,” he said.

“While the roadmap provides a clear view on the changes coming through the transition, this will be followed by a period of engagement with farmers, land managers and other stakeholders to finalise the design and operation of the future system to ensure they work for everyone.”

Key changes coming in in the agricultural sector, says Defra, include:

- Incentivising sustainable farming practices, creating habitats for nature recovery and establishing new woodland to help tackle climate change

- Investment in animal welfare, initially focusing on eradicating endemic diseases in cattle, pigs and sheep

- Reduction in the Direct Payment Scheme

- Launch of a Farming Investment Fund to support innovation and productivity, offering grants for equipment, technology and infrastructure

- Simplifying and improving existing schemes to reduce the “red tape” burden on farmers

The NFU says that it wants Defra to share its assessment of the economic impact of the profound policy change about to take place.

President Minnette Batters warns of the other current factors also at play as the UK leaves the CAP: the new trading arrangements with the EU; the national recovery from Covid-19 and the global challenge of climate change.

“Moreover, the long-running price war in UK retail often sees farming and growing caught in the crossfire,” she said.

“Ministers must bear these challenges in mind and use the transition period to also address abuses of market power which not only damage farm businesses but also consumer choice and availability. They must be mindful of the impact sudden drops in income could have, including seriously jeopardising the viability of a farm business and causing knock-on impacts for domestic food production.”