Department for Environment, Food and Rural Affairs
Cash boost and fairer funding formula for farmers across the UK
- Also published by:
- Office of the Secretary of State for Wales
Government announces new fairer allocation of farm funding across the UK , as farm budget is topped up with over £56 million until 2022.
A multi-million pound cash boost for farmers and a fairer approach to funding across all four corners of the UK has been announced by the UK Government today.
Following the recommendations of an independent review led by Lord Bew, the Government will allocate £56.59 million of new funding for farmers until 2022 and create a more tailored funding formula under the Government’s funding commitment for this Parliament.
Lord Bew’s review, announced last year, looked at what factors should determine the distribution of so-called ‘convergence’ funding – additional Common Agricultural Policy funding allocated to the UK between 2014 and 2020 to make payment rates more equal between EU Member States – to farmers over the next two years.
The Prime Minister confirmed this would mean a £51.4m boost for Scottish farmers during a visit to a farm in Aberdeenshire. This follows the announcement in Wednesday’s Spending Round for a one off payment of £160 million for Scottish farmers, drawing a line under previous concerns with the methodologies and decisions related to convergence.
Environment Secretary Theresa Villiers said:
I welcome the recommendations from Lord Bew and his panel on allocation of funding between England, Scotland, Wales and Northern Ireland over the next two years.
I am very pleased that we have not only been able to accommodate their recommendations for funding, but have been able to go further and provide Scottish farmers with the funding they feel they should have received between 2014 and 2020.
We will always back our great farmers and ensure Brexit works for all four corners of the UK. This new system will allow us to draw a line under decisions of the past and move towards a new model for farm support as we look ahead to our future outside the EU.
The new formula to distribute funding across the UK will reward land that previously received less CAP funding per hectare than the EU average. This means the support of the Pillar 1 budget will be tilted slightly towards those who farm in challenging environments, such as upland areas.
Lord Bew’s recommendations aim to address the concerns of Scottish farmers and either maintain or increase funding for farmers in other parts of the UK for the 2020 and 2021 scheme years. This includes:
- Agriculture funding for 2020-22 should be maintained in England and Northern Ireland and increased in Wales and Scotland. This means an overall funding uplift of £56.59 million will be new money allocated by the Treasury.
- Convergence funding for 2020-22 should be divided according to land across the UK that previously received less CAP funding per hectare than the EU average.
- The ‘per-hectare’ approach is not suitable for future farm support budgets. * That the budget should reflect the challenges facing farms operating in difficult environments, such as our upland areas. *Administrations across the UK engage collectively to agree principles for allocation of agriculture funding after 2022.
- Governments in all parts of the UK recognise the critical value of farming by protecting, if not enhancing, future agriculture funding – particularly in the context of EU Exit uncertainty.
The panel proposes the following allocations of this funding from 2020 to 2022, but with implied reductions offset with additional funding.
- England – 13.9 per cent
- Scotland – 63.7 per cent
- Wales – 13.7 per cent
- Northern Ireland – 8.7 per cent
In reaching these recommendations, the panel consulted with farming stakeholders, political parties and economists across the UK, as well as Ministers from the Scottish and Welsh Governments and senior officials from Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA).
Latest News from
Department for Environment, Food and Rural Affairs
'No deal' EU exit advice: further ports will be designated for movement of protected animals and plants20/09/2019 11:20:00
Government issues updated advice on moving internationally protected animals and plants, including types of fish, birds and rosewood, in the event of a ‘no deal’ EU exit.
Environment Secretary tours iconic Scottish industries20/09/2019 10:20:00
The Environment Secretary has this week met members of the Scottish fishing, farming and food and drink industries.
Updated guidance on the movement of equines in a no deal scenario20/09/2019 09:20:00
Updated guidance has been issued on the movement of horses and other equines.
Businesses reminded to register on system to maintain environmental standards on harmful gases post-Brexit16/09/2019 15:10:00
UK businesses that produce or trade products that contain F gas or ODSs need to sign up to online system which will maintain current environmental standards.
General licences: survey marks new phase of review13/09/2019 11:20:00
Environment Secretary Theresa Villiers launches public survey as part of planned review of general licences to manage wild birds in England.
2019 Badger control licences announced12/09/2019 08:10:00
Badger control licences published by Natural England
Defra responds to Wild Justice challenge: releasing gamebirds on protected sites11/09/2019 16:05:00
Defra will review the way in which the release of gamebirds on or near protected sites in England is managed following a proposed legal challenge.
Government pledges £62m flood funding for communities in England11/09/2019 11:22:00
New flood boost will better protect over 9,004 homes.