Direct agriculture funds of around £1.8bn per year will be cut by half in 2025 and completely dry up by 2027, under new government plans.
As the EU’s Common Agricultural Policy (CAP) no longer applies to British farmers following the UK’s departure from the EU, MPs warn in a new report for ‘blind Brexit optimism’ from Tory ministers.
In a new parliamentary report, the MPs anticipate that many small and tenant farmers across England may be put out of business as the government does not step in to financial gap.
Moreover, the MPs say the government is not doing enough to gain farmers’ trust in delivering any future policies.
Although the Department for Environment, Food and Rural Affairs has said it plans to match the £2.4bn worth of subsidies from EU’s CAP to UK farmers every year, direct payments to farmers will be cut or scrapped, depending on the size of the land farmer, according to various media reports, including The Independent.
Higher food prices
Under the government proposals, farmers are encouraged to make way or free up land for environmental purposes.
However, the flipside is that England may need to import more food, increasing Britain’s dependency on food chains from other countries and thereby potentially making groceries and food prices more expensive.
Moreover, the MPs point out that it is likely that imports will come from countries with environmental standards that are poorer than in the UK.
In addition, the lawmakers also point out the possibility that a smaller number but much larger farms will survive, which may further harm the environment.
The paper also warned this is likely to lead to farms getting bigger, which will in turn harm the environment, against government hopes.