The government is proposing that "public money for public goods" replace the Common Agricultural Policy (CAP).
The proposals announced by Environment Secretary Michael Gove include reducing direct payments to the UK's largest landowners to free up around £150 million in the first year of the agricultural transition period. This could be used to boost farmers delivering environmental enhancement and other public goods.
A consultation has been opened on the proposals to redirect money from payments based on the amount of land farmed to a new system of paying farmers for their work to enhance the environment and invest in sustainable food production.
Other public goods which could be supported include investment in technology and skills to improve productivity, providing public access to farmland and the countryside, enhanced welfare standards for livestock and measures to support the resilience of rural and upland communities.
The government will continue to commit the same cash total in funds for farm support until the end of this parliament in 2022. It has set out proposals for an ‘agricultural transition’ lasting a number of years beyond the implementation period during which direct payments would continue, providing stability and certainty for farmers as they prepare for the new system.
Mr Gove said: "The proposals in this paper set out a range of possible paths to a brighter future for farming. They are the beginning of a conversation, not a conclusion and we want everyone who cares about the food we eat and the environment around us to contribute."
In the consultation, ‘Health and Harmony: The Future for Food, Farming and the Environment in a Green Brexit’, the government is seeking views on:
- Options for how to gradually phase out direct payments, starting with the largest landowners, whilst developing a new environmental land management scheme.
- The range of public goods that could qualify for government funding under the new schemes, such as high animal welfare standards, wildlife protection, public access, and new technologies.
- Measures to move away from heavy handed enforcement which penalises farmers for minor errors, including a more efficient inspection regime to uphold important environmental and animal welfare standards.
- New business models and incentives for industry to invest in innovation and new technologies to increase their profitability.
The CLA reacted with disappointment. President Tim Breitmeyer said: "We can make our industry more productive and more profitable and we can deliver world-leading standards in animal welfare and environmental protection. But to do this we need certainty and time to plan. That is what we were promised and instead we have open questions, few decisions and no answers. 
"Our message is that in the short-term, only money that is clearly necessary for transitional measures should be taken out of the system, and no business, no matter how wealthy its owners are perceived to be, should face sudden and dramatic cuts."
Helen Browning, Soil Association chief executive, said: “While little is said about food or human health, or crucial mechanisms such as public procurement, we are led to expect more of this in a separate ‘food plan’ in due course. We now look forward to seeing how the practicalities of achieving these ambitions are shaped by the consultation process – we will be working over the coming weeks with our farmers, growers and food businesses, as well as our members and supporters to feed in inspiring, practical ideas.”
RSPCA head of public affairs David Bowles said: “The quality of the food we produce can become the world’s gold standard - but farm animal welfare is an essential ingredient to achieving that. 
“Around one thousand million animals are reared in the UK every year for meat, eggs and dairy products and evidence indicates that the majority are kept in ways that do not meet all their needs. This new bill has the potential to change that."
The consultation will run for ten weeks, closing on May 8, 2018.