The First Secretary of State has warned that farm "subsidy wars" between the devolved nations of the UK would be "counterproductive" and said there should be a single market across the UK.
In an interview with ITV News, Damian Green said there had to be a level playing field across the UK once Britain has left the EU.
Mr Green told ITV News: "Nobody wants to see subsidy wars. If you had Scottish sheep farmers competing with Welsh sheep farmers - it's not just a Scotland, England thing. Obviously Wales and Northern Ireland Come into this as well.
"It would be hugely counterproductive if different parts of the UK were having subsidy wars against each other.
"In terms of agriculture we need to make sure that we have a properly integrated single market in the UK, in the interests of Scottish farmers and English farmers. and I am sure the SNP the government would recognise that."
UK ministers say that at the end of Brexit talks Scotland will get substantial new powers currently administered by Brussels.
'Power grab'
But the Scottish government's 'Brexit minister' Michael Russell argued that the idea of a single UK-wide approach to farm support was "not borne out by the current situation".
The SNP government and UK government are clashing against the background of claims of a post-Brexit "power grab" of agricultural powers by Westminster.
Mr Russell met with Mr Green on the issue of the repatriation of powers following Brexit in September.
He warned that the draft Withdrawal Bill should not be an attempt by Westminster to 'power grab' from Brussels back to London.
Mr Russell said: “As the bill stands it does not respect devolved policy areas and the UK Government must urgently put a stop to this power grab.
“This meeting provides a fresh opportunity to set out the fundamental flaws in the bill and to encourage the UK Ministers to take on board our amendments. This situation is easy to resolve and our amendments would, if adopted, enable the bill to go forward for the consent of the Scottish Parliament.
“If the UK Government agrees to consider these amendments carefully and stops this attack on devolution, then I have no doubt we can work together to reach a sensible consensus between all governments"
'Fair allocation'
Mr Russell's opinion comes in stark contrast with the farming union NFU Scotland, who agree that funding must receive a "fair allocation" across the UK, and that a UK-wide financial framework is the best option.
A think-tank has also claimed that a "core UK policy" is the best way forward when deciding how to deliver farm subsidies post-Brexit.
But Michael Russell said Westminster cannot "drive a coach and horses" through the devolution settlement.
“At present that is what the EU (Withdrawal) Bill does. The UK Government will take control of all policy areas exercised at EU level, whether they are devolved or not.
“That is why the First Ministers of Scotland and Wales have described this bill as a naked power grab.
“We have made it repeatedly clear that we are not opposed in principle to UK-wide arrangements, but devolved policy areas must come back to the Scottish Parliament, where they properly lie, and then we can work towards an agreement.”
