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<p>In September 2018, alongside the Agriculture Bill and policy statement, the Government
published an ‘Analysis of the impacts of removing Direct Payments’. This provided
an overview of the potential impacts to different farm types and sizes of moving away
from direct payments and introducing a new system of public money for public goods.<del
class="ministerial"> It also showed the potential across all sectors for farmers to
become more efficient – producing more for less – as a response to any reductions
in direct payments.</del></p><p> </p><p><del class="ministerial">Direct payments are
untargeted, poor value for money, undermine efficiency and productivity improvements,
and limit opportunities for new entrants. They have imposed unnecessary bureaucracy
on farmers and can inflate rent prices. Some of our most successful and vibrant food-producing
sectors of agriculture have never been subsidised. For example the poultry industry,
the pig industry and the horticulture industry.</del></p><p> </p><p><ins class="ministerial">Direct
payments are arbitrary payments based on land area that tend to favour larger land
owners rather than smaller family farming businesses.</ins> In England we will phase
out direct payments during an agricultural transition, giving time for farmers to
adjust. Phasing out direct payments will free up money so we can reward farmers for
delivering public goods, including environmental outcomes<ins class="ministerial">
and animal welfare</ins>.<del class="ministerial"> We recognise that some certain
sectors are more dependent than others on direct payments but provided that these
farmers are delivering public goods, they will be well placed to benefit from the
new system.</del></p>
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