An error has been identified in the written answer given on 01 August 2019.
The correct answer should have been:
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. 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.
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.
Direct payments are arbitrary payments based on land area that tend to favour larger land owners rather than smaller family farming businesses. 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 and animal welfare. 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.