What happens to subsidies paid to farmers now we’ve left the EU?

04/02/2020

We’ve given a cautious welcome to new legislation which ensures that subsidies will continue to be paid to farmers in 2020. 

The news that payments would continue during the Brexit transition period will give some certainty to the region’s farming community.  

But farming subsidies are only part of a wider overhaul of farming legislation, with the Government’s new Agriculture Bill only introduced by DEFRA in mid January.

Sarah Baugh, head of the firm’s Agriculture and Rural Services Team, says: “The Direct Payments to Farmers Bill, which was introduced in Parliament at the start of January, gives governments across the UK the power to administer direct payments to farmers for 2020. This is the transition period that will follow the country’s departure from the EU on 31 January. 

“This is welcome news for farmers and food producers, following a time of real uncertainty. It follows the announcement that funding for direct payments will remain the same for 2020 as for 2019. 

“The new Agriculture Bill will provide a new system of farm support, which aims to move away from the EU’s Direct Payments structure and move instead towards a system where farmers are paid ‘public money for public goods’, such as enhancing air and water quality, tackling climate change or improving animal welfare.

“We will be working closely with landowners and clients to understand what the new Bill will mean for the way they plan and carry out their business. We are also looking carefully at what the decision not to include a legal commitment on trade deals will mean for farmers who may face competition from cheap, low quality, imports.” 

There will be a seven-year transition period for farmers to move from the current regulations under CAP, the EU’s common agricultural policy, to a system of environmental land management contracts.”   

To contact the Agricultural & Rural Services team at FBC Manby Bowdler, please contact Sarah on the details below.  

FBC Manby Bowdler’s Agricultural & Rural Services Team was recognised as a Top Tier team in the West Midlands in the Legal 500 2020.

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