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From 2014 to 2020 UK farmers are expected to receive 28 billion euros from the Common Agricultural Policy. Three quarters is direct income support based on hectares farmed.
Research from Defra shows EU subsidies make up over 60 per cent of the profit of the average English farm. A fifth of farms would be unable, without these payments, to meet production costs, allowing for depreciation.
These payments will be gradually phased out in 2021. They will be replaced by contributions to environmental improvement, the Environmental Land Management (ELM) scheme, to be rolled out in late 2024. In the interim farmers will get financial help to prepare for the new scheme (FT September 19, 2020).
It remains to be seen whether the interim financial help and the ELM will compensate for loss of EU subsidies.