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The British government has announced that Queen’s University academic Paul Bew (Lord Bew of Donegore) is to lead a review into which factors should determine the distribution of agriculture funding to devolved regions of the UK after Brexit.
The review panel, to include representatives from each devolved nation, will take into account various factors, including farm numbers and farm sizes, before making non-binding recommendations to government on how money should be fairly split. The review is expected to take up to six months.
The period under review only runs from 2020 to 2022, so covers the time from when the UK leaves the EU, up to the end of the current UK parliament. With the British government guaranteeing that funding levels will be maintained in full to 2022, what happens beyond that date is not fully clear.
At present, the UK receives around £3.1bn per year in direct payments.
The review into how this money is split is important to NI as we have the most to lose, with an average rate of payment of €330/ha, compared to the UK average of €229 and a Scottish average of €130.
However, in reverse, NI has the lowest payment rate per farm.
When it comes to allocating other forms of spending to devolved regions, the Barnett formula is generally used, which is a measure mainly based on population size.
At present, NI receives 9.1% of the UK CAP share, but under the Barnett formula would only be due 3%.
The Scottish and Welsh would also significantly lose if this approach was used, with the big gain being to English farmers, who currently receive 65.4% of UK direct payments, but under Barnett would be allocated 84%.
However, in a statement this week Defra Secretary Michael Gove gave an assurance that the Barnett formula would not be used now, or out beyond 2022, to allocate funding to agriculture.
“The government won’t simply apply the Barnett formula to Defra’s funding beyond this parliament” he said.
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