Chancellor of the Exchequer Sajid Javid has earmarked £3 billion to spend on farmers in 2020 to help them after Brexit. The cash - to be spread over two years - will be used to support farmers when the UK leaves the European Union and the Common Agricultural Policy (CAP) direct payments scheme next year.
It will allow funding for direct payments for 2020 to continue at the same level as this year, and supplement the remaining EU funding that farmers will receive for development projects until 2023.
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."
NFU Scotland's president Andrew McCornick said: "With us set to leave the European Union and the Common Agricultural Policy on January 31, 2020, it is essential that the farming industry knows where it stands with regards direct payments. Farm businesses are dependent upon these payments and until we see a fairer redistribution of the share of the profit in the supply chain, direct payments will remain important for all farmers and crofters. Government commitment to continue to fund direct payments when we leave the EU is welcome. When we meet ministers and MPs in the new year, we will press for a long-term funding commitment for farming and measures that will help farmers secure a fairer share of returns from the supply chain."