Steevo
Member
- Location
- Gloucestershire
Four in 10 farms at risk of closing under new green subsidy scheme, report warns
Rollout criticised for being slow, confusing and inadequateEmma Gatten, Environment Editor23 July 2024 • 6:32pm
Farmers in crop-sprayer study digital tablet data on soil types Credit: MONTY RAKUSEN/DIGITAL VISION
Nearly 40 per cent of farms in England are at risk of closing as new green subsidies are introduced, the National Audit Office (NAO) has warned.
A system being rolled out in the wake of Brexit replaces direct payments based on area with subsidies for farming in a more environmentally friendly way.
But 39 per cent of farms will not be viable after 2028 without “productivity improvements” including greater efficiency or diversifying, according to modelling from the Department for Environment, Food and Rural Affairs (Defra).
Even with improvements to productivity, some eight per cent of farms will still not be viable after the transition away from direct payments, according to the modelling.
The figures are referenced in a report from the NAO, which warns that grazing livestock farms are at greatest risk in the transition.
Drilling oats on minimum tillage ground instead of ploughing which could lead to erosion, with Dartmoor in the background Credit: LANDSCAPES, SEASCAPES, JEWELLERY & ACTION PHOTOGRAPHER/MOMENT RF
The modelling is based on the 55 per cent of larger farms that account for nearly all food production in England.
The report says that while Defra expects that most farms will be able to improve their productivity, this is uncertain, amid rising global costs of fertiliser and energy, and extreme weather.
Farming groups have criticised the rollout of the new subsidy scheme for being slow, confusing and inadequate.
The National Farmers’ Union said funding needed to increase from £2.4 billion a year to £4 billion to ensure the survival of British farms while meeting the Government’s green goals. It has highlighted the loss of more than 7,000 farming businesses since 2019, and warns that more are at risk.
The NAO said farmers had not been given the advice and support required to make the business changes needed.
It added: “The evidence is inconclusive on whether the scale of change needed will be achieved.
“Farmers need quality advice and support to adapt, but Defra has not yet ensured that they can access what they need.
Solar panels are cleaned Credit: MIKE HARRISON/STONE RF
“Around half of England’s farmers say they are not at all positive about their future in farming.”
Productivity improvements could include diversification such as farm shops, camp sites, or efficiency improvements with new technologies to improve yields.
Daniel Zeichner, the Farming Minister, said the new Labour Government would “restore stability and confidence” among farmers but would not abandon the green subsidy regime brought in under the Conservatives.
He said: “We will optimise schemes and grants in an orderly way, ensuring they produce the right outcomes for all farmers, while delivering food security and nature recovery in a just and equitable way.
“The Government will ensure that our schemes work for those farmers who have been too often ignored – including small, grassland, upland and tenanted farms.”
Martin Lines, the chairman of the Nature Friendly Farming Network said the report showed the need to increase the agricultural budget “in line with the scale of need”.
He said: “We rapidly need to see a clear, long-term vision for the sector which recognises the future of farming depends on a healthy, thriving natural environment.”
Four in 10 farms at risk of closing under new green subsidy scheme, report warns
Rollout criticised for being slow, confusing and inadequate
www.telegraph.co.uk