61% of the average English Farm Business Income derives from the CAP’s direct support - with huge variation across sectors.

From 8% in intensive poultry to a whopping 114% for mixed farming.

From 2021, government is withdrawing this direct support to £0 by 2027.

1/8

This direct financial support (to be found in most countries) allows UK farmers to produce some of the world’s cheapest food to the highest standards of safety, welfare & environmental sustainability.

Essentially, it underwrites our cheap food system.

2/8

To put it another way; arable (bread, cereals, beer) and grazed livestock (lamb, beef) farmers lose money on every tonne of grain or cow/sheep they produce (on average). Those who do both, lose the most!

But to this point, direct payments have kept the food coming

3/8

Government accepts that 42% of farms would currently be lossmaking without direct support, with the remaining 58% making at least £1.

However, the decision has been taken to remove this support, in the hope that farmers’ costs will magically reduce.

4/8

The impact won’t be uniform; as noted above, traditional mixed farms will be worst hit, but regionally those in the North East worst of all - with tenants more badly affected than landowners.

This seems an odd policy for a government committed to ‘levelling up’ society.

5/8

The forthcoming ELM scheme (from 2024) is a replacement for the current environmental package within the CAP and will not replace direct support.

Agri-environment income is pretty standard across all farm performance types, and does not offset the direct support loss.

6/8

In conjunction with FTAs which may allow imports of food it would be illegal to produce in the withdrawal of financial support for food production will have a devastating impact on the rural economy & farming - with the poorest farmers feeling the impact first.

7/8

We must take this opportunity to invest in sustainable farming fit for the 21st century - not abandon our farms to foreign competition and the dregs of the global food system.

The current policy is the result of a chronic lack of ambition - this can still be put right.

8/8