Government plans to cut farm payments from next year would see some Cumbrian farmers go out of business, according to farm chiefs.

The announcement that basic payments would be reduced by five to 25 per cent from 2021 for farmers in England came as thousands of farmers, some from Cumbria, packed out the ICC in Birmingham for the annual National Farmers Union (NFU) Conference.

But Alistair Mackintosh, the NFU Cumbria Council Delegate, and west Cumbrian sheep farmer, speaking to the News & Star, said any reduction in farmgate payments was not an option until trade deals were in place.

“We know that farm subsidies will be linked to green projects in the future, but if you drop off this lifeline to our farmers you are going to see people going to the wall. There will be some real challenges, and without some clear alternative in place this is not an option.”

The Government’s idea is to eventually scrap the much-reviled EU system that pays an annual subsidy to farmers based on how much land they cultivate and instead prioritise rewards to those who deliver environmental benefits.

Under the Government’s proposals farmers who receive up to £30,000 will see their payment reduced by five per cent, with further reductions for payments falling in bands above that amount.

For example, for a claim worth £40,000, a five per cent reduction would be applied to the first £30,000, and a 10 per cent reduction would be applied to the next £10,000.

The reduction percentages would be increased over time until the final payments are made for the 2027 scheme year, said Defra yesterday.

Money saved by reductions in direct payments would be reinvested directly into the farming and land management sector, added Defra.

Next year Defra will be piloting the Environmental Land Management (ELM) scheme, which will pay farmers who undertake environmental work.

But Mr Mackintosh said the NFU has insisted that this scheme has to be “fit for purpose”. “We need to see a rollover of the existing schemes until ELM is fit for purpose. We cannot go in with a half-baked scheme that farmers cannot get into. At this stage we do not know how our hill farmers will fit into ELM. They are paramount to the well-being of our industry. I would want to see some support for them and recognition of how important they are as a food producer.”

At a press conference on Day One, NFU President, Minette Batters said any reduction of the farm subsidies should be delayed until 2022. “We know there is a need to crack on with the new scheme, but at this stage we do not know who we will be trading with. We are two years behind as it is. We also need to know how the ELM scheme will work.”

Earlier, during her opening speech, Ms Batters challenged the Government to show global leadership on international trade and insist that British farm standards are the benchmark for any food imports in future trade deals. “For the first time in decades this country has the opportunity to shape a trade, immigration and agricultural policy which will define our country for decades to come. We must not allow UK farm standards to be undermined by imports of goods which would be illegal for our farmers to produce here.”