Economics – Detail on the Agricultural Transition Plan

6 July 2021

On leaving the EU, the UK dropped out of the Common Agricultural Policy (CAP). Each UK nation is now responsible for developing its own agricultural strategy, although it is untended that there should be close co-ordination between them.

In England, a new agricultural policy is being implemented over seven years, beginning in Spring 2022 – the Agricultural Transition Plan. Slow and measured progress is a deliberate choice – the CAP is seen as having distorted agricultural markets and practice over a long period, so this is being unwound gradually.

The new policy will be orientated towards improving sustainability performance, with this delivered via three streams of activity, designed in concert with farmers and other stakeholders:

  • Sustainable Farming Incentive
  • Local Nature Recovery
  • Landscape Recovery

The government has now issued an update, giving more detail of how the Sustainable Farming Incentive will be implemented.

The Incentive will be made available to farmers that were eligible for the pre-existing Basic Payment Schemes. Initially, four activities will be available, with more to follow later:

  • Arable and horticultural soils standard
  • Improved grassland soils standard
  • Moorland and rough grazing standard
  • Annual animal health and welfare review

The two soils standards will reward farmers for practices that are thought to improve soil health (defined as good structure, plentiful organic matter and active biology).

Soil improvement is expected to save up to 60,000 tonnes of CO2 emissions each year over 2022 to 2027 and up to 80,000 tonnes per year 2037.

The annual health and welfare review will include a yearly visit from a vet, intended to reduce endemic disease, optimise use of medicines and improve welfare (different measures for each animal species).

In order to encourage take-up, it is intended that subsidy payments for participants will be at least as generous as under the old EU schemes, if not more so. However, payments will also be made available for farmers wishing to leave the industry.

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