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British farm subsidies have mysteriously disappeared

6 February 2023 - Niels van der Boom

When British farmers were asked to vote mainly in favor of Brexit, they were promised that the government would do everything possible to more than compensate for the funds from the CAP. In a different way, in which remuneration is mainly based on 'public services', but financial security would come. Research by the British newspaper Observer shows that in reality only 0,5% of the promised money actually reaches the farmer.

Until Brexit was a fact, the United Kingdom received £4,9 billion from the European Commission, the equivalent of €5,54 billion. These CAP funds will be phased out up to and including 2027 and will be replaced by new subsidy schemes. In 2022, the Sustainable Farming Incentive (SFI) was launched.

0,44 percent of subsidy to farmers
In the meantime, the share of direct payments for agricultural entrepreneurs has decreased by more than a fifth, the newspaper writes The Guardian. A total of 0,44% of the total budget was allocated to the SFI programme. This is evident from data that the Observer, part of The Guardian, has uncovered. The total budget is £2,4 billion (€2,72 billion), of which €12 million was actually paid out to farmers last year.

It is unclear where the vast majority of the reserved budget has gone. According to the Defra Ministry of Agriculture, the entire budget is indeed made available through SFI and other schemes. A (small) part of this amount will be carried over to this year, according to the ministry.

Income drops
British farmers are increasingly dependent on the new subsidy schemes. This year, the share of direct payments will decrease by 36%. It is frustrating for the farmers. In individual cases, the subsidy amount is sometimes almost halved, according to research by The Guardian. Jeremy Clarkson also takes up the subject in the sequel to his successful 'Clarkson's Farm' series, available from February 10th. "It's like FIFA decides to change the football rules a week before the new season, without saying what the new rules will be. Completely unworkable!"

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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