Now that Article 50 has been formally signed, the Common Agricultural Policy will no longer have as much influence in two years’ time. This means that the UK will have increased flexibility on the rules and support affecting agriculture. In light of this, the NFU in England and Wales has published its Vision for Future Farming document, which looks at the key points it wants to see in the Government’s agricultural policy post-Brexit.

Common UK agricultural framework

The NFU understands that the devolved governments will continue to implement their own agricultural policy. However, it wants to see regional policies sitting within an agreed common framework.

Support focused on improving productivity

This could be through capital allowances and other fiscal measures to encourage farmers to invest in infrastructure and equipment. There would be a focus on business collaboration and risk management. The NFU also wants to see emphasis on research and knowledge transfer, plus more opportunities for training, advice and market intelligence.

Tools to reduce volatility

To reduce farmers’ vulnerability to market changes, the NFU would like to see insurance schemes underwritten by Government or tax-efficient deposit or loan schemes. Meanwhile, it still sees direct support measures playing a part for some farm businesses.

Environmental measures

The NFU would like to see an environment scheme, which is set nationally, but much of the detail could be delivered locally in collaboration with local community and voluntary groups. It wants to see continued support for farmers who manage priority habitats.

Level of direct support depends on Brexit deal

The NFU states that if the UK agrees a Brexit deal, which offers free trade with the EU and prevents cheaper imports from abroad, then there would be far less focus on direct payments to farmers. This could mean UK farmers are at a competitive disadvantage to their EU cousins who get higher payments under the CAP.

On the other hand, if after Brexit farmers struggle to gain access to high-value markets in the EU and have cheaper food imports arriving in the UK, direct payments will have a much larger part to play.

It is important to note there was no mention of coupled support within the NFU’s vision, which could lead to tension between Westminster and Holyrood as Scotland currently has headage payments on ewe hoggets and calves. Furthermore, delivering direct payments within a single framework is likely to raise the issue of lower area payments in Scotland compared with England and particularly Northern Ireland.

There is also no mention of payments linked to enhanced animal welfare, which has been pushed by UK Farming Minister George Eustace.

The NFU in England and Wales is calling on the Government to maintain current levels of public investment in agriculture but accepts that this may be delivered in different ways. It states this could be in the form of direct or indirect support to farmers.

Finally, it looks like the NFU in England and Wales is keen to see fewer businesses using direct Government support to underpin the annual income of a business. Its preference is for specific measures which are focused on improving efficiency, the environment or reducing volatility.