UK farmers offered £100,000 to retire

The UK government has set up a scheme to pay older farmers as much as £100,000 to retire to pave way for fresher faces in the industry as part of the UK's move away from the current EU system in the wake of Brexit.

The average sum to be paid will be around £50,000 and comes as part of a massive overhaul for farm grants and changes in environmental policy in the UK's agricultural sector

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This is set to succeed the EU's system, which allocates funds based on the volume of land farmed. The new grants and their payouts are set to be assessed via consultation.

On average, a British farmer receives £21,000 annually under the current system. Farmers who chose to retire will no longer receive their annual subsidies.

Environment secretary George Eustice believes many older UK farmers are refusing to operate the agriculture sector under greener terms or use more environmentally-friendly methods.

He told the FT: “The generational nature of farming means that a younger generation often feels a great sense of duty to carry on the family tradition, but that might not be right for all.

“What of those who feel pride in what their family have achieved but actually yearn to pursue a different career? Or what of those who would like to do something different for a while, but maybe return to the family farm in later life?”

Farmers in Wales are expected to be paid under a similar scheme, while the government is still thinking of a way to deliver subsidy changes in Scotland and Northern Ireland.

Eustice added that the current scheme causes farmers to take no risks and that a need has arisen for older farmers to move on.

At the Oxford Farming Conference earlier this year, he said many of these older farmers were "standing in the way of change."

He added that a "fresh perspective can make a world of difference."

However, concerns have been raised about farmers who wish to leave the industry but lack the capital to do so, which has reportedly spurred the government into action.

The Department for Environment, Food and Rural Affairs also held an internal study, which revealed around 12% of farmers wish to leave the industry within a few years.

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The sums paid to farmers will be based on the annual income the farm would have brought in, multiplied by 2.5 - coming to an average of £50,000 - capping at £100,000.

The current subsidy system is expected to be in place until 2027 while the government drafts further plans.

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