Government urged to delay transition from direct payments

CLA has called for a 'fair transition' away from direct payments amid Covid-19 disruption and political uncertainty surrounding the transition itself
CLA has called for a 'fair transition' away from direct payments amid Covid-19 disruption and political uncertainty surrounding the transition itself

The start of the transition from direct payments should be delayed by one year due to the current coronavirus crisis, according to the Country Land and Business Association.

The call comes as the agricultural transition period in England between 2021 and 2027 looks set to continue despite Covid-19 related uncertainty.

Replacing the current system is the Environment Land Management (ELM) schemes, which will be available from 2024.

But the CLA has now set out a case for delaying this transition to achieve a 'fair transition for all farming businesses'.

The rural group argues that, while there are 'many good things' in the Agriculture Bill, the design of transition away from direct payments still poses 'significant risks' to farmers.

CLA President Mark Bridgeman said: “Given that government has made slow progress in publishing details of how this transition will work – not to mention the scale of the disruption being created by COVID-19 – it is clear that delaying the transition is now absolutely necessary."

The CLA calls for details of remaining direct payment for the whole of the 7-year transition period within 3 months of the Agriculture Bill being enacted or 12 months before direct payments are cut.

The group also urges the government to ensure the profile of direct payment cuts is 'proportionate and manageable' in the early years of transition with no business having more than a 25% cut from their original amount before ELMS is fully available.

The CLA added that cuts in direct payment can be no more than is needed for investment in productivity growth and ELM pilot payments to farms only.

Finally, it calls for the introduction of a large-scale Business Adaptation Programme to facilitate business change and more funding to reflect the scale of need for industry transformation and environmental targets rather than being constrained by allocating the current CAP budget.