Javid pledges £3bn to farmers to replace their lost EU funding

FARMERS will get almost £3 billion guaranteed funding from next year to replace EU payments that will be lost after Brexit, Sajid Javid has pledged.

The Chancellor said farmers could enter the new year with confidence they could “thrive” after Brexit, as he announced funding for 2020/21.

The cash will be used to support farmers when the UK leaves the EU and the Common Agricultural Policy direct payments scheme next year.

It will allow funding for direct payments for 2020 to continue at the same level as this year, and supplement the remaining EU funding farmers will receive for development projects until 2023. The Conservatives’ manifesto promised to maintain payments at the same level for the lifetime of the current parliament. Individual allocation decisions will be made annually.

Farmers’ groups remain concerned over longer-term funding, the uncertainty until trade talks are completed and the need for continued subsidies in the years after 2020/21.

Mr Javid said: “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. Farmers can enter the new year with confidence that they have our backing and will be able to thrive after Brexit.”

Theresa Villiers, the Environment Secretary, said: “Outside the EU we will have a simpler, fairer funding system – one that rewards farmers for enhancing our environment and safeguarding our high animal-welfare standards.”

Andrew Mccornick, NFU Scotland’s president, welcomed the pledge but said: “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.”