Farm Subsidy Direct Payments to End by 2027
Farm subsidies in England will be phased out over 7 years (announced Wednesday this week), ending 2027, under plans outlined in the governments Agriculture Bill. Direct payments will be replaced with a new system of ‘public money for public goods’ largely based on rewarding farmers who undertake environmental measures. Direct payments for 2019 and 2020 will be made on the same basis, but will start to be phased out from 2021. Most farmers will see a reduction to their payments during the transition:
- Up to £30k – 5% reduction
- £30k-£50k – 10%
- £50k-£150k – 20%
- Over £150k – 25%
A pilot Environmental Land Management (ELM) scheme will begin next year, with Defra working with farmers to design, develop and trial the new approach. This will include funding for farmers who collaborate on R&D projects, e.g. soil health or sustainable livestock farming.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
Ellie Hammett FCCA
Manager
Ellie started with Evolution ABS in April 2010 and became a fully qualified as a Chartered Certified accountant in December 2015. She focuses on a portfolio of a range of clients, from farming to plumbing, providing valuable support in all aspects of accountancy and taxation.
Having grown up on a dairy farm in Dorset, Ellie later moved to Devon in 1998. She now lives with her husband and two young sons on their family farm in East Devon, where they raise beef, sheep, and grow arable crops. When she gets the chance, Ellie enjoys being outdoors with her boys, who share their dad’s passion for farming. She also enjoys moments spent with family and friends and the occasional bit of retail therapy when time allows!
Ellie can be contacted in the office on Mondays – Thursdays.