Leaving the European Union provides a once-in-a-generation opportunity to reform agriculture. Phasing out Direct Payments in England will free up money so we can reward farmers for delivering public goods, including environmental outcomes. We will phase out Direct Payments gradually over a transition period of 7 years. This will give time for farmers to adapt and prepare for the new environmental land management system, which will allow farmers to decide how best they can deliver environmental benefits from their business and their land.
We will pay Direct Payments for the 2019 scheme year on the same basis as for 2018 and plan to allocate the money paid in Direct Payments for 2020 in much the same way that we do now. The Government has also pledged to continue to commit the same cash total in funds for farm support until the end of the Parliament, expected in 2022. The figure includes all EU and Exchequer funding provided for farm support under both Pillar 1 and Pillar 2. Furthermore, all Pillar 2 agreements signed by 31 December 2020 will be funded for their lifetime.