THE National Sheep Association today cautiously welcomed the Government's announcement on funding for agriculture in coming years.

This follows the Chancellor, Sajid Javid, confirming nearly £3 billion of funding for 2020 to support farmers once the UK leaves the EU, maintaining the level of funding for Direct Payments at the same rate as last year.

NSA chief executive Phil Stocker comments: “We welcome the announcement of allocated agricultural funding in 2020. Knowing the money is ring-fenced and secure offers reassurance for our industry in the coming year as the Government strives to build strong and reliable free trade agreements with the EU and other countries, which benefit industry and support UK production.

“However, this is just the first year of a significant transition, and we are not feeling at all reassured by the indicated reduction of funds allocated for 2021/2022. We are still facing much uncertainty about whether beneficial trade agreements can be struck in time and, if not, we will again be facing the detrimental prospect of WTO tariffs from the beginning of 2021.

“Seeing allocated support dropping during that period of uncertainty is not desirable and we hope Government will recognise this and deliver on its promises of stability throughout 2020 and to recognise the important and valuable work our farmers are doing already to provide public goods and food security for the country.”

Mr Javid confirmed the cash would be used to support farmers once the UK leaves the EU next year, allowing them to plan for the future, sow their crops and care for their livestock with confidence.

The UK will leave the Common Agricultural Policy (CAP) Direct Payments scheme, which supports farmers across Europe with subsidies in 2020. This will be replaced by a new system based on public money for public goods.

The cash injection will allow the funding for Direct Payments for 2020 to continue at the same level as 2019 and supplement the remaining EU funding that farmers will receive for development projects until 2023 at the latest. We will guarantee the current annual budget to farmers in every year of the Parliament.

Mr Javid said: "When we leave the EU and are freed from the Common Agricultural Policy, we will be able to support our vital rural communities – who are a cornerstone of life in the UK – with a fairer and less bureaucratic system.

"Farmers can enter the new year with confidence that they have our backing and will be able to thrive after Brexit.

Environment Secretary Theresa Villiers said: "Outside the EU we will have a simpler, fairer funding system – one that rewards farmers for enhancing our environment and safeguarding our high animal welfare standards.

"We are committed to making sure our rural communities feel the benefits of Brexit and will ensure our farmers get a better deal."