Post-Brexit subsidies paid to farmers to boost food production and the environment have been paused without warning.
Defra has paused post-Brexit farming subsidies aimed at boosting food production and the environment (Image: Getty)
Farming subsidies have been halted without warning in the Labour Government’s latest “shattering blow” to farmers and rural communities. Post-Brexit payments to farmers were paused on Tuesday (March 11), when the Government announced plans to revise the Sustainable Farming Incentive (SFI) after June’s spending review.
News of the pause comes amid protests to Labour’s changes to agricultural inheritance tax rules. National Farmers’ Union President Tom Bradshaw said: “This is another shattering blow to English farms, delivered yet again with no warning, no understanding of the industry and a complete lack of compassion or care.
“We have had major concerns for years about whether there was the capability within Defra (Department for Environment, Food and Rural Affairs) to deliver the agricultural transition post-Brexit.
“We have warned time and time again that large parts of the SFI were poorly designed and the department was consistently failing to deliver it.”
Farmers are already reeling from Rachel Reeves’ inheritance tax blow (Image: Getty)
He added: “Today’s terrible news was delivered with only 30 minutes warning to us before ministers briefed the press, leaving us unable to inform our members.
“There has been no consultation, no communication; there has been a total lack of the ‘partnership and co-design’ Defra loves to talk about. It is another example of the growing disregard for agriculture within the department.”
The Government’s move leaves thousands of farmers unsure as to how they can plug the subsidies, which are being phased out.
Under the SFI scheme, farmers are paid for actions aimed at boosting nature, including by improving the condition of their soil as well as planting hedgerows, trees and wildflowers.
Defra said over 50,000 farms are benefitting from farming schemes, with more money spent on SFI than ever before.
The Government said it won’t be accepting new SFI applications from today, but money for existing agreements will be paid and remaining eligible bids for funding will proceed.
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Farmers were paid for planting trees, hedgerows and wildflowers (Image: Getty)
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Defra insisted the Labour Government inherited underspent farming schemes and pointed to ministers “proudly” securing £5billion for the sector’s budget over two years.
The department said the largest scheme, SFI24, has more than 37,000 agreements, but maintained the Government inherited an uncapped scheme which has now reached its end.
Minister for Food Security and Rural Affairs Daniel Zeichner said: “This Government is proud to have set the biggest budget for sustainable food produce in history, to boost growth in rural communities and all across the UK, under our Plan for Change.
“More farmers are now in schemes and more money is being spent through them than ever before. That is true today and will remain true tomorrow. We have now successfully allocated the SFI24 budget as promised.”
However, Mr Bradshaw said the door has been slammed shut for thousands of farmers after Chancellor Rachel Reeves promised they would be able to access new schemes which paid them to boost the environment as she hastened the end of previous schemes.
He added: “They say the money is spent, but because Defra refuses to be transparent we don’t know where it’s been spent, or whether it’s all been spent within this year.
“The awful dilemma now faced by many farmers is whether to turn their backs on environmental work and just farm as hard as they can to survive. This is a loss to both farming and the environment and cannot be what was intended.”
Country Land and Business Association President Victoria Vyvyan said: “SFI was the most ambitious, forward thinking and environmentally friendly agricultural policy seen anywhere in the world – it promised a fairer future for farmers and a greener future for the world.
“Labour promised to support it, but at the first available opportunity they have instead scrapped it. Of all the betrayals so far, this is the most cruel. It actively harms nature. It actively harms the environment. And, with war once again raging in Europe, to actively harm our food production is reckless beyond belief.”
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