23 Aug Brexit and DEFRA August Update
As we edge closer to the 31 October Brexit deadline DEFRA have issued further guidance on their future plans when we have left the EU and the Agriculture bill has been passed through parliament. They want a move away from a subsidy-approach to a more business-like partnership where farm businesses are self sufficient, productive and resilient.
- Direct payments to be phased out from 2021 to 2027. The exact annual reductions will depend on wider government spending decisions
- Lump sum / golden handshake payments to be offered from 2021 to accelerate retirement and change in the industry
- Delinking of direct payments from the requirement to hold or farm land – again to facilitate change in the industry
- A new targeted approach to compliance and regulation
- A new Environmental Land Management (ELM) scheme launched in 2024 to fund public goods – clear air / water, enhanced landscapes, climate change mitigation etc
- World leading animal welfare schemes and standards with funding available to help farmers reach these
- Investment support for technology, equipment and infrastructure which will increase productivity, manage the environment and provide wider public goods.
There is still huge uncertainty regarding trade issues and potential tariffs and quotas between the UK and EU member states. The final agreement on these will have an impact on farm gate sale and input prices.
The full briefing can be found here.
We provide detailed farming accounts for agricultural clients showing the profitability of each enterprise which will play an important role in farm business decision-making in the coming years. If you would like further information please contact us.