post brexit agriculture bill header

Post Brexit food policy paves the way forward

Common Agricultural Policy (CAP)

On Thursday the 16th of January 2020, the post-Brexit agricultural bill was re-introduced to the House of Commons. This bill will lead the way for the biggest shake-up that the agriculture industry in the UK has seen for decades, with big changes set for agricultural food and supply chains. The new system outlined in the bill will be phased in from 2021 to 2027 when the last payments made under the old common agricultural policy (CAP) will be made. The CAP costs the EU nearly 40% of its budget or approximately €58bn a year. It was originally set up in 1957 to sustain the EU’s food supplies by increasing agricultural productivity. However, after many reforms due to the butter mountains and wine lakes of the 80s, the structure is quite different to the original.

Nowadays, the 12 million farmers across Europe that the CAP supports are rewarded for particular land use. A large part of the CAP payments is known as direct payments, known as the Basic Payment Scheme (BPS).

These direct payments pay farmers based on the total amount of land farmed. Farmers in the UK currently receive about £3.5 billion annual support under the CAP, of which over 80% are classified as ‘direct payments’.

These payments tend to be skewed and the largest landowners benefit the most as opposed to being linked to any specific public benefits. The top 10% of recipients receive almost 50% of total payments, while the bottom 20% receive 2%.

Navigating the post Brexit landscape

The post Brexit agricultural bill is set to cause major disruption to regional food supply chains, with an increasing focus on environmental stewardship, sustainability and esg.

As food and agribusinesses look to navigate these shifts, Farrelly Mitchell in uniquely positioned to assist. Our consultants hold deep knowledge on agrifood policy and regulations that have the potential to disrupt or impact your operations. Through our risk analysis & management services, we can identify these threats and design tailored strategies to convert them into value-add opportunities. Contact us today to learn more.

Download our Government & multilaterals Insight

Post Brexit food policy paves the way forward


Senior Director
Trending insights

✎ Subscribe today

Stay up to date with the latest agribusiness publications.

More insights

5 min read
Our experts analyse emerging plant-based protein trends, outlining the innovations driving the sector and strategies to navigate new markets. . . .
5 min read
Our experts discuss the role or institutional investors in facilitating business expansion and achieving ESG targets throughout the agrifood industry. . . .

Subscribe to our newsletter

Receive the latest updates from the agribusiness world, including fresh insights and more, directly in your inbox.

Get in touch

Our team are ready to help you on the pathway to achieving your goals in food or agribusiness.

This form collects your name, email address and contact number so that Farrelly Mitchell can communicate with you and provide assistance. Please check our privacy policy to see how we protect and manage your submitted data.

Speak with our food & agribusiness experts

Want to call us directly? We’d love to hear from you.
Here’s how you can reach us.
Office Location
Unit 5A, Fingal Bay Business Park, Balbriggan Co. Dublin Ireland. K32 EH70