Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential impact of changes to the rate of Basic Payments to upland farmers on those farmers' businesses.

In October 2021, the Government published the Agriculture in the UK Evidence Pack. This publication included static analysis showing the profitability of farms in the absence of Direct Payments for the years immediately prior to the start of the agricultural transition. In 2019 the Government published the farming evidence compendium. This publication provided an in-depth assessment of the impacts of removing Direct Payments with analysis by sector, location in England and type of land tenure. This publication also provided analysis on how farm businesses, across all sectors, can offset the impact of Direct Payments.

We are helping farmers, including those in the uplands, to navigate the agricultural transition. For example, we are now paying Direct Payments in two instalments each year for the remainder of the agricultural transition period, to help farmers with their cashflow, giving farm businesses an advance injection of cash. It will not affect farm profitability, but we are hoping it will help farmers to make business decisions with more confidence.