Michael Gove: The future payment system for farmers and how it will work

"We have guaranteed that the amount we allocate to farming support - in cash terms - will be protected throughout and beyond this period right up until the end of this Parliament in 2022.

"We will continue support for Countryside Stewardship agreements entered into before we leave the EU and will ensure that no one in an existing scheme is unfairly disadvantaged when we transition to new arrangements. We will pay the 2019 BPS scheme on the same basis as we do now.

"I then envisage guaranteeing that BPS payments continue for a transition period in England, which could last a number of years beyond the implementation period, depending on consultation.

"During this time, we propose to first reduce the largest BPS payments in England. We could do this through a straight cap at a maximum level or through a sliding scale of reductions, to the largest payments first.

Gove - I envisage guaranteeing that BPS payments continue for a transition period in England, which could last a number of years beyond the implementation period, depending on consultation #OFC18

— Olivia Midgley (@FGoliviamidgley)

Gove - I envisage guaranteeing that BPS payments continue for a transition period in England, which could last a number of years beyond the implementation period, depending on consultation #OFC18

— Olivia Midgley (@FGoliviamidgley) January 4, 2018

"After the implementation period, this transitional payment could be paid to the recipient without the need to comply with all the onerous existing cross-compliance rules and procedures."

Phew, so @michaelgove very much embracing change #OFC18 - direct subsidy goes, farmers have ‘number of yrs’ to adapt. Public £ for public goods. he’ll develop coherent food policy+ label for farm/food quality. natural capital at heart. All details @BBCFarmingToday pic.twitter.com/PHeRaTqWQB

— charlotte smith (@charlottebsmith)

Phew, so @michaelgove very much embracing change #OFC18 - direct subsidy goes, farmers have ‘number of yrs’ to adapt. Public £ for public goods. he’ll develop coherent food policy+ label for farm/food quality. natural capital at heart. All details @BBCFarmingToday pic.twitter.com/PHeRaTqWQB

— charlotte smith (@charlottebsmith) January 4, 2018

Mr Gove said while the Rural Payment Agency (RPA) had met its target of paying 90 per cent of Basic Payment scheme applicants by the January 1 deadline, the department must and can do better.

Mr Gove said: "As well as making Defra a more efficient, focused and, above all, innovative department I also want to drive change in agriculture in four areas.

"I want to ensure we develop a coherent policy on food - integrating the needs of agriculture businesses, other enterprises, consumers, public health and the environment.

"I want to give farmers and land managers time and the tools to adapt to the future, so we avoid a precipitate cliff edge but also prepare properly for the changes which are coming.

"I want to develop a new method of providing financial support for farmers which moves away from subsidies for inefficiency to public money for public goods.

"And I want to ensure that we build natural capital thinking into our approach towards land use and management so we develop a truly sustainable future for our countryside."

Mr Gove said Defra intended to reduce the largest BPS payments in England.

"We could do this through a straight cap at a maximum level or through a sliding scale of reductions, to the largest payments first," he added.