Brexit: “Historic” consultation begins to shape the future of UK farming

28 Feb 2018

28 Feb 2018 --- The UK government says that it is giving farmers, landowners and food producers a “once-in-a-generation” opportunity to help “shape the future of farming” post-Brexit by opening a consultation period to gather views from industry as Britain prepares for an agricultural transition.

The government’s proposals – detailed in the consultation paper “Health and Harmony: The Future for Food, Farming and the Environment in a Green Brexit” – will see money redirected from direct payments under the Common Agricultural Policy (CAP), which are based on the amount of land farmed, to a new system of paying farmers “public money for public goods.”

Principally, this means money from farmers would be shifted to enhance the environment and invest in sustainable food production.

Other public goods which could be supported include investment in technology and skills to improve productivity, providing public access to farmland and the countryside, enhanced welfare standards for livestock and measures to support the resilience of rural and upland communities.

In line with its manifesto commitment, the UK government says it will continue to commit the same cash total in funds for farm support until the end of this Parliament in 2022.

Agricultural transition
The government has set out proposals for an “agricultural transition” lasting some years beyond the implementation period during which direct payments would continue, providing stability and certainty for farmers as they prepare for the new system.

However, at the same time, reductions to direct payments to the largest landowners first could free up around £150 million (US$208 million) in the first year of the agricultural transition period, which could be used to boost farmers delivering environmental enhancement and other public goods, according to Secretary of State for Environment, Food and Rural Affairs, Michael Gove.

“As we leave the EU, we have a historic opportunity to deliver a farming policy which works for the whole industry. We are asking for the views of those who will be affected to make sure we get this right, so any future schemes reflect the reality of life for farmers and food producers,” he said.

“The proposals in this paper set out a range of possible paths to a brighter future for farming. They are the beginning of a conversation, not a conclusion and we want everyone who cares about the food we eat and the environment around us to contribute.”

What is the UK government seeking views on?
The consultation, which closes on May 8, 2018, is a chance for farmers to be more central to Government thinking than any time for fifty years as the UK leaves the EU.

Among the range of proposals put forward, the government is seeking views on:

Options for how to gradually phase out direct payments, starting with the largest landowners, while developing a new environmental land management scheme.
The range of public goods that could qualify for government funding under the new schemes, such as high animal welfare standards, wildlife protection, public access, and new technologies.
Measures to move away from heavy-handed enforcement which penalizes farmers for minor errors, including a more efficient inspection regime to uphold important environmental and animal welfare standards.
New business models and incentives for industry to invest in innovation and new technologies to increase their profitability.

According to the government, the current system of support for farmers and landowners shaped by the CAP is inefficient and inequitable because it does not secure the public goods needed to enhance the environment such as resilient habitats, richer wildlife, healthier rivers and cleaner water.

Farm payments in 2019 will follow the existing model, and in the meantime, the government has pledged to simplify applications for farmers wishing to enter into existing schemes to provide environmental benefits such as Countryside Stewardship.

Dairy UK’s reaction to Defra announcement
In response to Defra’s announcement, Dairy UK says that it has long advocated that the “seismic shift” Brexit will create brings opportunities and any new agricultural policy that incentivizes farmers for improving animal welfare, environmental standards and that promotes efficiency, is considered a positive step towards the future success of the dairy industry.

But Dairy UK – the trade association for the British dairy supply chain that brings together processors, dairy co-operatives, manufacturers, farmers and bottled milk buyers throughout the UK – does also have some concerns.

“The government must ensure that following this consultation, urgent questions on the future of farming are addressed,” says the statement.

“We broadly support the move to phase out the direct payments, so long as assurances are given that these funds be ring-fenced for agriculture and invested to improve and maintain the competitiveness of UK dairy farms against their European neighbors.”

“As an industry, we need clarity from the government on how the policies of the devolved administrations will work alongside each other, to ensure a common framework that does not distort domestic trade.”

Dairy UK goes on to say how it will contribute to the consultation and plans to help Defra shape the future of farming post-Brexit.

“We're happy to see that the consultation recognizes the importance of dealing with the border issues between the Republic of Ireland and Northern Ireland,” it adds.

Last October, Dairy UK published a White Paper report detailing the “game changing” opportunities and challenges which the industry is facing over issues such as Brexit and consumer confidence in dairy foods. Some of the concerns center around the future of trading agreements with EU countries, specifically whether new tariffs will be introduced, and how UK dairy farmers could lose out to European competitors if a solid deal is not put in place.

National Farmers’ Union reaction
Meanwhile, the National Farmers’ Union of England and Wales describes the government’s consultation paper as the most significant development in government laying out UK agricultural policy since the passing of the 1947 Agriculture Act.

The NFU says it’s on the “front foot” and has already set out its vision for the future policy. The NFU’s Framework for Success sets out a bold and ambitious policy for farmers to succeed post-Brexit.

“This vision gives us a solid foundation from which to respond to the consultation, but we want to build on that, continuing the conversation with our members across the country,” says an NFU statement.

Members of the NFU’s policy directorate will be on hand in several regions across the UK to present the government’s proposals, alongside what the NFU’s position has been and how the NFU’s response is developing.

The Union is calling for input from its members to ensure everyone has their say on this “very significant consultation” and to make sure the voice of farming and its interest are “heard loud and clear.”

By Gaynor Selby