NFUS welcomes cash pledge but seeks clarity and commitment
NFU Scotland has welcomed the UK Government’s commitment to fund direct payments when the country leaves the EU.
A meeting planned between the union and Westminster this month will be used by the NFUS to see further clarity on last week’s announcement and press for long-term commitment to farming.
‘We will also look for further measures that will help farmers secure a fairer share of returns from the supply chain,’ said union president Andrew McCornick. ‘With the UK set to leave the European Union and the Common Agricultural Policy on January 31, it is essential that the farming industry knows where it stands with regards direct payments.
‘Farm businesses still rely upon these payments and, until we see a fairer redistribution of the share of the profit in the supply chain, direct support will remain important for almost all farmers and crofters.’
Last week the Chancellor of the Exchequer, the Rt Hon Sajid Javid, confirmed nearly £3 billion of funding for 2020 to support farmers once the UK leaves the EU.
‘When we leave the EU and are freed from the Common Agricultural Policy, we will be able to support our vital rural communities – who are a cornerstone of life in the UK – with a fairer and less bureaucratic system,’ said the Chancellor. ‘Farmers can enter the New Year with confidence that they have our backing and will be able to thrive after Brexit.’
This cash injection will maintain the level of funding for direct payments at the same rate as last year and will provide certainty for farmers, giving them confidence for next year.
The UK will leave the Common Agricultural Policy (CAP) Direct Payments Scheme, which supports farmers across Europe with subsidies in 2020. This will be replaced by a new system based on public money for public goods. The cash injection will allow the funding for direct payments for 2020 to continue at the same level as 2019 and supplement the remaining EU funding that farmers will receive for development projects until 2023 at the latest. We will guarantee the current annual budget to farmers in every year of the parliament.
It is in addition to the £206.6 million of funding awarded since spending round to support the farming sector in Scotland and Wales.
The Chancellor said: ‘The funding is spread across two financial years with £449 million for the Scottish Government in 2020/21 and £24 million for 21/22.’