Defra Secretary Michael Gove has announced that CAP inter-pillar transfer payments will remain the same until 2020.
The Secretary of State announced that the amount of Common Agricultural Policy (CAP) monies transferred from Pillar 1 direct payments to Pillar 2 rural development will remain at 12% for 2019 and 2020.
The NFU has welcomed the decision, which clarifies the UK’s position ahead of the 1 August 2017 EU Commission deadline for member states to submit any changes to their CAP funding for 2019 and 2020.
It means that the funding ceilings for BPS and rural development schemes such as Environmental Stewardship and Country Stewardship will remain unchanged for the lifetime of CAP within the UK.
'New system'
In a statement made in the House of Lords Michael Gove said: “Leaving the EU presents an unprecedented opportunity to develop a new system that works for us.
“The government has committed to maintain the same total in cash funds until the end of this parliament.
“As we prepare to leave, we will work with farmers, food producers and environmental experts across the United Kingdom and with the devolved administrations to devise a new agri-environment system, to be introduced in the following parliament.
“I have, therefore, concluded that the inter-pillar transfer should remain unchanged in England under the current Common Agricultural Policy framework.”
Land Management Support
Mr Gove gave the farming industry a flavour of this new system, which he called a 'Green Brexit' for farmers.
He said future farm subsidies must be assessed on environmental and public benefits the land brings rather than simply how much land is owned.
The next government has been urged to replace the old two pillar EU system with a new 'three part deal', according to a report released last month.
An alliance of 94 organisations said they recommended that the next government create a new deal for farmers called 'Land Management Support' (LMS).
The LMS, they said, would be based on a contract between the farmer and the government, and a well-established and independent assurance scheme could provide administration.
