A new allocation of farm funding, across the UK has been announced.

Following an independent review led by Lord Bew, the Government will allocate £56.59 million of new funding for farmers up to 2022, and create a more tailored funding formula going forward.

Lord Bew’s review has undertaken a detailed study of the factors which factors should determine the distribution of additional Common Agricultural Policy funding, to ensure payment rates are more equal between EU Member States, in the next two years.

A new model for farm support outside the EU has been proposed, with the formula to distribute funding across the UK, favouring land that previously received less CAP funding per hectare than the EU average.

This means the support of the Pillar 1 Budget (BPS) will be tilted towards those who farm in challenging environments, such as upland areas.

  • Agriculture funding for 2020-22 should be maintained in England and Northern Ireland and increased in Wales and Scotland
  • 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.

It has been determined that the ‘per-hectare’ approach is not suitable for future farm support budgets post 2022 and that going forward it should reflect the challenges facing farms operating in difficult environments, such as our upland areas.

It is not yet known what this means in monetary terms. However, all announcements to date suggest that farmers and landowners are likely to need to improve biodiversity, provide for wildlife and increase environmental stewardship to benefit from funding going forward.

If you would like to discuss farm subsidies, or your business post Brexit, please contact any of the Butler Sherborn Rural Team on 01285 883740.

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