Business World

UK farm subsidies to linger after Brexit

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THE BRITISH GOVERNMENT said Thursday it will match European Union (EU) subsidies for farmers for around five years after Brexit until it puts in place a new system focusing more on environmen­tal protection.

British farmers receive around £ 3 billion (€ 3.37 billion, $ 4.06 billion) a year from the bloc’s Common Agricultur­al Policy ( CAP), of which around three- quarters is delivered through direct payments, according to the National Farmers Union.

Environmen­t Secretary Michael Gove said the government would match these so-called Basic Payment Scheme funds for “a number of years” beyond a twoyear transition intended to ease Britain’s withdrawal.

A government official said this would likely be around five years after Brexit — to 2024 — although the proposals will depend on a consultati­on due to be launched later this year.

“That guaranteed income should provide time for farmers to change their business model if necessary, help to make the investment necessary for any adjustment­s and prepare for the future,” Gove told a farming conference in Oxford.

Britain will leave the CAP when it leaves the EU in March 2019, but is seeking a transition period in which the relationsh­ip with Brussels will continue on similar terms.

Gove said the CAP was “fundamenta­lly flawed,” adding: “Paying landowners for the amount of agricultur­al land they have is unjust, inefficien­t, and drives perverse outcomes.”

During the extended transition period, the government proposes to reduce the funds given to the largest landowners.

Gove said a new system of subsidies after Brexit would take greater account of efforts to protect and enhance the environmen­t, such as through planting woodland and increasing biodiversi­ty.

Allowing public access to farms, and innovative use of technology could also be linked to public funds, he said. —

 ??  ?? BRITAIN’s Environmen­t, Food and Rural Affairs Secretary Michael Gove said the government would match these so-called Basic Payment Scheme funds for “a number of years” beyond a two-year transition intended to ease Britain’s withdrawal.
BRITAIN’s Environmen­t, Food and Rural Affairs Secretary Michael Gove said the government would match these so-called Basic Payment Scheme funds for “a number of years” beyond a two-year transition intended to ease Britain’s withdrawal.

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