Scottish farmers will have to continue to operate under the Common Agricultural Policy until at least December 2020, according to the UK and EU agreement on Brexit transition.

The announcement has been welcomed by farming unions, as it gives more certainty to producers over the next few years.

The transition deal would see the UK stay in the EU single market and customs union until the end of December 2020, meaning current rules must be followed until then.

It also means the present system of direct payments will continue in 2019, and probably in 2020 – although whether payments come from national or EU funds in 2020 is still unknown.

Beyond 2020, the UK government has suggested that payments will remain until 2022, or possibly 2024, but significant changes to existing rules will probably not be made until 2021.

NFU Scotland’s policy and member services director Jonnie Hall welcomed the agreement, saying: “This provides some much-needed certainty to NFU Scotland members – the majority of whom will be making decisions for their businesses now, which will have implications in 2020 and beyond.”

Trading arrangements

In responding to the announcement about the transition deal, NFUS was at equal pains to highlight the importance of good UK-EU trading arrangements during the period. “It is vital that unfettered and frictionless trade with the EU is maintained during this time, via a customs union which protects Scottish producers from non-tariff barriers and being undercut by imported produce,” said Hall.

Union representatives were in Westminster on Wednesday, attending a meeting, chaired by Defra minister George Eustice, for farming and environmental organisations from the devolved nations. Speaking to Farmers Journal Scotland before the meeting, Jonnie Hall said that while the union backed the UK Government’s proposals for a commonly agreed regulatory approach on standards around food labelling and animal health and welfare, thereafter the delivery of measures has to be “within the gift” of the Scottish Government.

NFUS has recently raised the issue that Scotland is not being represented well enough in Brexit discussions at Westminster and said that there is “work to do to ensure that there is a Scottish voice at [House of Commons committee] evidence sessions”.

The union will publish its own agricultural policy for Scotland next week, in the company of MSPs. “In the absence of clear or obvious moves [by the Scottish Government] to develop policy in Scotland, there is a need for us to put our cards on the table,” Hall said.