Farming Payments Policy

Mark Spencer Excerpts

Monday 9th January 2023 Written Statements

[The Minister for Food, Farming and Fisheries (Mark Spencer)]

We are undertaking the most significant reform of agricultural policy and spending in England in decades as we take England out of the common agricultural policy. We are phasing out unfair and environmentally damaging farm subsidies, radically improving our services to farmers, providing one-off grants to support farm productivity, innovation, research and development, and developing and expanding our schemes to pay farmers to provide environmental goods and services alongside food production.

The reform is enabled by our manifesto commitment to guarantee an average of £2.4 billion to farmers and landowners in each year of this Parliament, with all funding released from direct payments reductions to be made available through our new grants and schemes.

The changes we are making are essential to help us grow and maintain a resilient, productive agriculture sector over the long term and at the same time achieve our ambitious targets for the environment and climate, playing our role in tackling these huge, global challenges. These reforms are about food and nature going hand in hand for all farmers, with environmental goods and services playing a key role in all farm businesses.

We have reviewed our plans for the agricultural transition, considered feedback from the sector, and lessons learned from the early stages of the agricultural transition. We are moving ahead with the transition, on the same timescale, and pressing ahead with our environmental land management schemes, fine-tuning them to make sure they help to deliver our ambitious outcomes on the environment and support a thriving farming sector.

As I confirmed at the Oxford farming conference last week, farmers will receive increased payments for protecting and enhancing nature and delivering sustainable food production.

Farmers could receive up to a further £1,000 per year for taking nature-friendly action through the sustainable farming incentive (SFI). This new management payment will be made for the first 50 hectares of farm (£20/ha) in an SFI agreement, to cover the administrative costs of participation and to attract smaller businesses—many of whom are tenant farmers—who are currently under-represented in the scheme.

Farmers with a countryside stewardship (CS) agreement will see an average increase of 10% to their revenue payment rates—covering ongoing activity such as habitat management. DEFRA is also updating capital payment rates, which cover one-off projects such as hedgerow creation, with an average increase of 48%. We expect there to be 32,000 countryside stewardship agreements live at the start of this year, a 94% increase from 2020.

Meanwhile, capital and annual maintenance payments for the England woodland creation offer (EWCO) will also see an increase this year.

We will evolve the existing countryside stewardship scheme instead of inventing a new “local nature recovery” scheme, to get to the same destination of supporting farmers to contribute towards net zero and biodiversity among other outcomes. This will include expanding the scope of the scheme to pay for a wider range of actions at a greater ambition, further improving the service so that it is easy for farmers to apply and get paid and targeting our funding through the scheme to where it will have the biggest impact.

Taken together, these changes will mean we will support farmers and landowners for making space for nature alongside sustainable food production, contributing towards meeting the UK’s legally binding environment targets such as halting and reversing biodiversity loss by 2030, agreed at COP15 in December last year.

Later this month we will be publishing detailed information about what we will pay for in our schemes, both this year and in future, and how farmers will be able to get involved.

[HCWS483]