The Public Accounts Committee (PAC) has released a report covering DEFRA's proposals to replace farming subsidies following Brexit. The PACs says Defra itself concedes “its confidence in the scheme looks like blind optimism”, noting that Defra has given no detail about how either the necessary productivity increases or environmental benefits will be brought about, nor how these will offset the new Environmental Land Management Scheme’s dramatic effect on English farmers, who will see their income from direct payments reduce by more than half by 2024-25.

The Department for Environment, Food & Rural Affairs (DEFRA) is introducing the Future Farming and Countryside Program (FFCP) which will replace the Common Agricultural Policy (CAP) with aims to:

The FFCP plans to do this by replacing direct payments to farmers, and instead, providing income contingent on landowners providing environmental benefits.

The PAC comments on the schemes conclude that:

The Government has two months to respond to the PAC’s comments.

Useful guides on this topic

Farming: Overview
What is farming? What are the tax consequences and tax considerations of farming?  What are the features of agricultural tenancies?

External Links

DEFRA’s plan for post-EU land and farming subsidies based on 'blind optimism'

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