The final amendments are due to be made in the coming weeks to a draft policy document drawn up by DAERA, in consultation with local industry representatives, before it is put to Defra towards the end of January 2018.

The document outlines a vision for future agricultural policy in NI, both in the short term to 2022, and in the longer term, beyond a transition period, and once the UK finally exits the EU.

The short-term proposals cover the period from 2019 (formal UK exit on 29 March 2019) to 2022, which is effectively the time frame over which the British government has committed to maintaining CAP monies going to agriculture as they currently are.

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At present, there is some doubt as to the level of flexibility that DAERA will have to change any policy over this period. It could be the case that we have to follow CAP rules in their entirety in 2019, and possibly also in 2020 and 2021, especially if the UK remains part of CAP during a UK-EU transition deal.

However, assuming there is some room to make changes from 2020 to 2022, it is understood that current draft proposals include retaining area-based payments to active farmers, but ditching greening rules. It would mean the current greening payment is incorporated into the overall Basic Payment Scheme.

What is not yet clear is what happens to the transition of area-based payments to a flat rate by 2021. By 2019 (the end of the current budget period), all payments will have moved five of the seven steps (71.4%). Whether this process continues to fully flat rate (around €330/ha) by 2021 is probably for a DAERA minister to decide.

Finally, the current plan is to permanently convert payment entitlements from euro to sterling in 2019.

Long term

In the longer term, beyond 2022, and once the UK has completed its exit