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Incorporation of EU legislation governing the CAP direct payment schemes

Part of Direct Payments to Farmers (Legislative Continuity) Bill – in the House of Commons at 12:45 pm on 28th January 2020.

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Photo of George Eustice George Eustice The Minister of State, Department for Environment, Food and Rural Affairs 12:45 pm, 28th January 2020

It is complicated—as ever—with the common agricultural policy, but I tried to explain this point in my opening remarks. It is a quirk of the way that the EU budget works that the EU borrows the money for the pillar one payment—the BPS and area payments—from next year. Because the payments are made typically from December onwards, the money comes out of the 2021 budget. The pillar two payments come out of the 2020 budget—the year in which the money is spent. Put simply, we have not contributed to the 2020 capped budget because it is borrowed from 2021. I know that is complicated, but in essence we are not paying twice.