The UK government has announced that farmers in England, Northern Ireland, Wales and Scotland will receive the same proportion of the €27.6 billion Common Agricultural Policy (CAP) budget over the next seven years as they currently receive. Following extensive consultation with the devolved administrations, the government has concluded that the change in CAP funding on the current seven year period will be shared equally between the four UK administrations. The overall CAP budget has fallen slightly this year, as a result of the smaller EU budget. The PM successfully fought to cut the EU budget to secure a better deal for UK taxpayers.

Owen Paterson, Secretary of State for the Environment, said:

The UK government fought hard for the best-possible deal on CAP, and we’ve worked closely with farmers and ministers from Scotland, Wales and Northern Ireland to make sure that this is fairly allocated across the UK.

Theresa Villiers, Secretary of State for Northern Ireland, said:

This is good news for farmers across Northern Ireland and the wider UK. Having worked closely with Defra on this issue, I’m delighted that we have kept allocations proportional for the next round of CAP funding.

David Jones, Secretary of State for Wales, said:

This agreement announced today shows that this Government is listening, and has ultimately acted in the best interests of all UK farmers. The Wales Office Ministerial team has worked closely with Welsh Government officials, and with farming organisations such as NFU Cymru and the Farmer’s Union of Wales as we worked towards reaching this important agreement.

In doing so, we have secured outcomes that have successfully addressed their key concerns, and achieved the fairest possible deal for Welsh farmers. This is a clear demonstration of the outcomes that can be achieved when the two Governments in Westminster and Cardiff Bay work closely together for the good of the Welsh and wider UK economies.

Alistair Carmichael, Secretary of State for Scotland, said:

This announcement is the latest confirmation that Scottish farmers get a better deal on CAP as part of the United Kingdom.

• Northern Ireland will receive a pillar 1 (direct payment) allocation of around €2,299 million, and a pillar 2 allocation around of €227 million.
• Scotland will receive a pillar 1 (direct payment) allocation of around €4,096 million, and a pillar 2 allocation of around €478 million.
• Wales will receive a pillar 1 (direct payment) allocation of around €2,245 million, and pillar 2 allocation of around €355 million; and
• England will receive a pillar 1 (direct payment) allocation of around €16,421 million, and a pillar 2 allocation of around €1,520 million. This will mean that each Administration is only subject to an equal percentage cut on pillar 1. The Government, having taken account of the views of the Devolved Administrations believes that this is the most appropriate settlement for England, Northern Ireland, Scotland and Wales.

1. Figures given above are in nominal terms (not adjusted for inflation)
2. Over 2014-2020 the UK will receive €25.1 billion in direct payments. Over the same period the UK will receive €2.6 billion in pillar 2 funds.
3. Between 2013/14 and 2019/20 the UK’s direct payments (pillar 1) will decline by 1.6 percent. In inflation adjusted terms (2011 prices) this is a 12.6 percent reduction.
4. On pillar 2, between 2007-2013 and 2014-2020 the UK’s allocation will increase by 7.8 percent. In inflation adjusted terms (2011 prices) this is a reduction of 5.5 percent.
5. Today’s announcement relates to the government’s decision to allocate the UK’s budget for direct payments over the 2014-2019 direct payment scheme years. This decision does not affect the existing regional allocation of direct payments between England, Wales, Northern Ireland and Scotland for the 2013 scheme year, which for budgetary purposes falls in the 2014 EU financial year.
6. Final allocations will be subject to agreement with the European Parliament over the 2014-2020 EU Budget.