Delinked payments axed early as farm support is phased out

Defra farming minister Dame Angela Eagle has confirmed that 2027 will be the last year of delinked payments for farmers in England – a year sooner than originally planned.

The draft Agriculture Delinked Payments Reductions Regulations in England were debated by MPs on 1 June ahead of a vote, with the farming minister stating that reducing delinked payments was “essential” to fund other schemes.

See also: Government under pressure to extend Ensus CO2 support deal

Dame Angela said: “The reductions to delinked payments will complete the move away from the previous scheme, which rewarded land ownership, with 50% of payments going to the largest 10% of firms.

“We are applying the reductions fairly, with larger reductions to amounts of the higher payment band.”

Delinked payments have been capped at just £600 this year, following a 98% reduction being imposed.

Shadow farming minister Robbie Moore argued that delinked payments were scheduled to be gradually reduced from 2021 to the end of 2028.

Dramatic decline

However, he said the government had accelerated that decline dramatically, ending the seven-year transition well before the 2028 deadline that farmers had been led to expect.

He added: “This Labour government promised that farmers would be able to access new income streams as direct payments were phased out, but that has not happened.

“The SFI closed to applications in March 2025 and it remains closed.

“While I accept that the government have committed to opening SFI 2026 this month, it is not open yet, and it will only be open for smallholdings of up to 50ha.

“Farmers currently lack access to replacement support during this period of high cost inflation and market volatility.”

Lack of clarity

Further concerns were also raised regarding existing SFI agreement holders and countryside stewardship mid-tier participants whose agreements are due to expire in the coming year, given the lack of clarity on replacement schemes and removal of delinked payments.

Liberal Democrat MP Danny Chambers expressed unease that the government is accelerating the withdrawal of support before replacement schemes are “fully available, adequately funded and trusted by farmers”.

He added: “We are particularly concerned that England is now the only country in the UK and Europe that does not financially support farmers in the production of food.”

Dame Angela responded that money released by reducing delinked payments was not being lost to the sector and was being reinvested through other schemes for farmers and managers.

The committee voted in favour of the regulations with nine ayes to five noes.