More farm subsidy millionaires than ever

THE number of UK farm businesses receiving more than one million pounds in European subsidies almost doubled from 16 to 29 last year.

Figures published on the Defra website today (Wednesday, May 12) detail EU payments – including direct aids, market schemes and rural development measures – to every farm business in the country.

A sharp increase in subsidies has sparked renewed criticism over the proportion of taxpayers’ money awarded to so-called ‘rich’ farmers.

Subsidy campaigners farmsubsidy.org said there were now 1,212 farm subsidy millionaires across Europe including 268 in Germany and 174 in France.

“Each year we’re seeing a further concentration of benefits in the hands of fewer, larger landowners, who seem to use their subsidy cheques to buy up more land and more subsidy ­entitlements,” Jack Thurston, the co-founder of farmsubsidy.org, told the Scotsman.

“Most people think farm subsidies are there to help the small guy but we’re seeing it’s quite the reverse. The bigger you are, the better your land, the more public aid you get,” he said.

Most of the big money is paid to charities and corporations with Nestle and the RSPB both receiving more than £1m.

The Queen qualified for £473,500 in farm aid in 2009 for Sandringham Farms while NFU president Peter Kendall’s family business, WJ Kendall and Sons, qualified for just less than £180,000.   

In total nearly 200,000 farmers across the UK received payments of £3.3 billion, up from £2.6 billion in 2008.

Terry Jones, NFU acting director of communications, said the payments were needed to ease market pressures, to help keep prices sustainable in times of crisis and to give farmers a reward for looking after the environment.  

But last month the EU agriculture commissioner Dacian Ciolos said he would be ‘willing to discuss’ a limit on large payments as part of a wider overhaul of the CAP.

There was further criticism over the amount of taxpayer money spent on so-called ‘hobby farmers’.

In 2009 more than £3.5 million was paid out to 20,000 farmers who claimed less than £300 in farm subsidies.

Roger Williams, Liberal Democrat MP, said it was wrong to pay these ‘farmers’.

“The Liberal Democrats want to reform the system so that there is a de minimus payment of £300. The money saved should be put into a hill farm apprenticeship fund. I will push for this in the coalition Government,” he said.

There were also widespread calls to cut out the ‘inconsequential’ payments.

In 2009 the rpa.gov.uk” target=”_blank”>RPA processed 67 claims worth less than £1 and 12 claims worth less than ten pence.   

Critics said it was ‘crazy’ given the National Audit Office calculation that the average cost per SPS claim was £1,743.

Readers' comments (3)

  • How does Mr Jones think the payments keep prices sustainable in times of crisis- does that mean keeping them up or down?

    Unsuitable or offensive? Report this comment

  • What is the average annual salary of a farmer, even though the taxpayer pays
    the farmers, the amount each receive
    appears almost secret.

    Unsuitable or offensive? Report this comment

  • What does it cost the British tax payer per head as our contribution to farm subsidy

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