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Direct farm subsidy support to continue says UK chancellor

Scottish farms can expect to receive government subsidy at the current levels for 2020.
Scottish farms can expect to receive government subsidy at the current levels for 2020.

Direct farm subsidy support will continue at current levels for 2020, the UK Government has confirmed.

Chancellor Sajid Javid has announced nearly £3 billion in funding for UK farmers for 2020.

He confirmed the annual budget for farm support is guaranteed for every year of the Parliament.

“When we leave the EU and are freed from the Common Agricultural Policy, we will be able to support our vital communities, who are the cornerstone of life in the UK, with a fairer and less bureaucratic system,” said Mr Javid.

“Farmers can enter the new year with confidence that they have our backing and will be able to thrive after Brexit.”

He said the funding package, which totals £2.852bn, would ensure direct payments continue at the same level as in 2019 and supplement the remaining EU funding that farmers will receive for Pillar 2 projects until 2023 at the latest.

Defra Secretary of State Theresa Villiers said: “We are committed to making sure our rural communities feel the benefits of Brexit and will ensure our farmers get a better deal.”

The Treasury said the funding will be paid across two financial years to Defra and the devolved administrations.

It said the first instalment would provide 95% of the estimated funding requirements for 2020, with the remaining 5% paid in the following financial year.

The Scottish Government’s allocation for 2020-21 is £449 million, and £24m for the 2021-22 financial year.

UK Government Minister for Scotland, Douglas Ross, welcomed the funding announcement.

He said: “Farming is vital to Scotland’s economy and we will always back our farmers.

“For too long our farmers have been given a poor deal by the Common Agricultural Policy and we will make sure they have a prosperous future outside of the EU.”