A new Agricultural Bill has been announced today by Parliament to support a Green Brexit. The Bill details a new system “public money for public goods”. The BPS subsidy system will be phased out over the next seven years and replaced by an Environmental Land Management system. A trial will start next year, with pilots running from 2021.
The 91 page briefing paper does not give any firm commitments, and the Government will not be in a position to do so until negotiations with the EU are completed.
Key highlights include:
· BPS will be on the same basis as currently, subject to simplifications where possible, for 2019 and 2020 and will be phased out over a seven year period – 2021 to 2027.
· Direct payments during the ‘agricultural transition period’ (2021-2027) in England will be ‘delinked’ from the requirement to farm the land – giving farmers the flexibility to plan for the future and help attract new entrants into the sector.
· Payments may be calculated on monies received previously and allow farmers to use these funds to invest in their business, diversify activities or simply retire from farming.
· Most farmers will see a payment reduction during the transition period. Initially those who receive the highest payments will see the bigger reductions.
· Transparency in the supply chain will be strengthen, helping farmers get a better deal in the marketplace.
· 2027 will be the final year of BPS payments.
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