Government proposals have been launched which could see £150m in support payments redirected to a new system of paying farmers "public money for public goods".
It said that reducing direct payments could free up £150 million for the environment and other public goods.
The consultation, launched today (27 February) by Defra Secretary Michael Gove, wants to see an end to direct payments based on the amount of land farmed.
Instead, the money will be redirected from direct payments under the Common Agriculture Policy (CAP) to a new system based on work to enhance the environment and invest in sustainable food production.
Defra said the current system of support for farmers and landowners shaped by the CAP is "inefficient and inequitable".
The department said it does not secure the public goods needed to enhance the environment, such as resilient habitats, richer wildlife, healthier rivers and cleaner water.
Other public goods which could be supported include investment in technology and skills to improve productivity, providing public access to farmland and the countryside, enhanced welfare standards for livestock and measures to support the resilience of rural and upland communities.
The government has also again confirmed it will continue to commit the same cash total in funds for farm support until the end of this Parliament in 2022.
'Agricultural transition'
It has today set out proposals for an ‘agricultural transition’ lasting a number of years beyond the implementation period during which direct payments would continue,.
Defra said this will provide "stability and certainty" for farmers as they prepare for the new system.
At the same time, however, reductions to direct payments to the largest landowners first could free up around £150 million in the first year of the agricultural transition period, which could be used to boost farmers delivering environmental enhancement and other public goods.
Mr Gove said it is an "historic opportunity" to deliver a farming policy which works for the whole industry.
"Today we are asking for the views of those who will be affected to make sure we get this right so any future schemes reflect the reality of life for famers and food producers," he explained.
"The proposals in this paper set out a range of possible paths to a brighter future for farming. They are the beginning of a conversation, not a conclusion and we want everyone who cares about the food we eat and the environment around us to contribute."
National Farmers Union president Minette Batters told the BBC: "Michael Gove has committed now to launching a national food plan, we've been lobbying for that for a long time.
"We feel that food has been taken for granted for far too long, and now is the time to take it seriously."
Seeking views
Mr Gove said the consultation is an opportunity for farmers to be "more central to government thinking".
Among the range of proposals put forward by the government in today’s consultation, the Government is seeking views on:
• Options for how to gradually phase out direct payments, starting with the largest landowners, whilst developing a new environmental land management scheme.
• The range of public goods that could qualify for government funding under the new schemes, such as high animal welfare standards, wildlife protection, public access, and new technologies.
• Measures to move away from heavy handed enforcement which penalises farmers for minor errors, including a more efficient inspection regime to uphold important environmental and animal welfare standards.
• New business models and incentives for industry to invest in innovation and new technologies to increase their profitability.
The consultation will run for ten weeks, closing on 8 May 2018.
