   
  
G/AG/N/GBR/9  
 
1 February  2022 
(22-0783) Page: 1/7 
Committee on Agriculture  Original: English  
 
NOTIFICATION  
The following submission, dated 31 January  2022, is being circulated at the request of the delegation 
of the United Kingdom . The notification concerns new or modified domestic support measures 
exempt from reduction ( Table DS:2 ). 
 
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  G/AG/N/GBR/9  
 
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  Table DS:2   
DOMESTIC SUPPORT: UNITED KINGDOM  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
 
(1) FULL TITLE OF MEASURE:  
Farming Innovation Pathways  
(2) DOMESTIC LEGISLATION REFERENCE:  
This scheme will be delivered through legal powers in section 5 of the Science and Technology Act 
1965.  
(3) DETAILED DESCRIPTION OF MEASURE WITH REFERENCE TO CRITERIA:  
The Farming Innovation Pathways (FIP) scheme is a research and development agricultural 
competition  funded by the Department for Environment, Food and Rural Affairs (Defra) and delivered  
in partnership with Innovate UK -UKRI (United Kingdom Research and Investment). FIP aims to 
facilitate novel innovations to develop and support a productive, resilient and sustainable agriculture 
sector. Projects are expected to carry out research within the overarching themes of Plant, Livestock, 
Novel Food Production Systems, Bioeco nomy and Agroforestry.  
The scheme is classified as Green Box according to the criteria in paragraph 1 of Annex 2 of the 
Agreement on Agriculture (AoA) as funding will be provided through a publicly -funded government 
programme not involving transfers from consumers. Funding is consistent with the requirements of 
Annex 2 paragraph 1(b) of the AoA, as the support shall not have the effect of providing price 
support to agricultural producers.  
The programme of activities funded by this scheme falls under the po licy specific criteria listed under 
Annex 2 paragraph 2 of the AoA, "General Services " (a) research. This government funded research 
and development programme aims to develop new technologies, processes and practices to increase 
productivity and sustainabi lity in agriculture. Funding will be provided to academic institutions, 
research organisations, research and technology organisations, non -producer agri -businesses, and 
consultants. Whilst applications can come from across the UK, the territorial extent of  the scheme 
is England -only meaning that the outcomes of the projects must be of benefit to farmers and growers 
in England.  
Farmers and growers may be involved in project teams and as such may be beneficiaries of payments 
from UKRI, on behalf of Defra, fo r research expenditure. Direct payments to agricultural processors 
or producers conform to Annex 2, paragraph 6 criteria (b) through (e) for "Other " direct payments. 
Accordingly, payments will not be based on type or volume of production (b) nor price base d (c), 
nor based on factors of production (d), and finally  (e) no production will be required to receive such 
payments.  
(4) COST OF MEASURE:  
The total cost of this measure is GBP 14.5 million  
(5) DATE OF ENTRY INTO EFFECT:  
From October 2021  
(6) PERIOD OF A PPLICATION:  
The scheme will operate from October 2021 to September 2024  G/AG/N/GBR/9  
 
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  (7) PRODUCTS TO PRINCIPALLY BENEFIT (IF ANY INDIVIDUAL PRODUCT(S)):  
The support is not specific to an agricultural product.  G/AG/N/GBR/9  
 
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  Table DS:2   
DOMESTIC SUPPORT: UNITED KINGDOM  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
___________________________________________________________________________  
 
(1) FULL TITLE OF MEASURE:  
The Farming Investment Fund  
(2) DOMESTIC LEGISLATION REFERENCE:  
This fund will be delivered through legal powers in the Agriculture Act 2020 in conjunction with the 
The Agriculture (Financial Assistance) Regulations 2021 Statutory Instrument.  
(3) DETAILED DE SCRIPTION OF MEASURE WITH REFERENCE TO CRITERIA:  
The Farming Investment Fund (FIF) is a modification of Countryside Productivity under the European 
Union (EU) EU Rural Development Programme (EU RDP)  for England,  which operated under the 
Common Agricultural Policy from 2014 -2020 and was notified as Green Box support.  
The FIF aims to support a green economic recovery by stimulating investment and boosting 
sustainable productivity in agriculture during the Agricultural Transition  period. The FIF will support 
farmers, growers and foresters to invest in tec hnology, equipment and infrastructure to improve 
productivity, efficiency and environmental outcomes in the farming sector.  
There are two strands to the scheme: the Farming Equipment and Technology Fund which will 
provide smaller grants to improve business  performance, and the Farming Transformation Grant 
which will support larger investments in agricutural equipment and technology. More information 
about the scheme is available at this weblink . 
The FIF will be a standalone domestic grant scheme, the territorial extent of which will be England -
only. Funded by the UK Exchequer, the scheme will be open for applications at regular periods 
between Nov ember 2021 and 2024 -25. 
The FIF has made the following modifications to the Countryside Productivity scheme that operated 
in the UK under the EU RDP:  
• lower entry grant limit of GBP 2000 from the Equipment and Technology Fund  
• lower maximum grant threshold of GBP 500k for the Transformation Fund  
• contractors of primary Agriculture, Forestry and Horticultural production will be eligible for 
grants, in line with the Agriculture Act 2020  
• environmental sustainability to be given due consideration throughout the scheme and be a 
strategic fit scoring criterion for all applicants.  
• The specific uplift for underdeveloped regions has been removed, but if such payments are 
re-introduced under this programme, they will meet the requirements of paragraph 13 for 
"Payments under regional assistance programmes " as described below.  
The suppor t is classified as Green Box according to criteria in Annex 2 paragraph 1, as funding will 
be provided through a publicly -funded government programme not involving transfers from 
consumers. In line with Annex 2 paragraph 1(b), the support shall not have th e effect of providing 
price support to agricultural producers.  G/AG/N/GBR/9  
 
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  Payments will be consistent with those made under the previous iterations of the scheme that 
operated in the UK under the EU RDP. The programme of activities funded falls under the policy 
specific criteria listed under the following paragraphs of Annex 2:  
• Paragraph 2, "General Services " including (c) training services, (d) extension and advisory 
services encouraging farmer cooperation to increase value share in the supply chain for 
primary produ cers. Payments made in this category will not involve direct payments to 
agricultural producers or processors.  
• Paragraph 11, "Structural adjustment assistance provided through investment aids " - the 
investments in physical assets will be based on an interv ention rate of 40% of total costs. Part 
of the fund will focus on small infrastructure investments to improve farm performance, 
including investments that help farmers use less inputs, reduce emissions, and cut waste. 
Payments will conform with criteria (a )-(f). 
• Paragraph 12, "Payments under environmental programmes " – payments in this category of 
support will (a) depend on fulfilment of clearly defined environmental or conservation 
objectives and conditions related to production methods and inputs, program me and (b) will 
be limited to the extra costs or loss of income involved in complying with the government 
programme.  
• Paragraph 13, "Regional assistance programmes " – any payments made in this category will 
conform to the criteria set out in subparagraphs (a) – (f) of paragraph 13, including that 
payments shall be limited to the extra costs or loss of income involved in undertaking 
agricultural production in clearly -defined disadvantaged areas.  
• Paragraph 5 "Other " support. Payments made in this category wi ll meet the requirements of 
paragraph 6 parts (b) – (e). 
(4) COST OF MEASURE:  
The total cost of this measure is GBP 211 million  
(5) DATE OF ENTRY INTO EFFECT:  
16 November 2021  
(6) PERIOD OF APPLICATION:  
November 2021 to November 2026  
(7) PRODUCTS TO PRINCIPALLY BENEFIT (IF ANY INDIVIDUAL PRODUCT(S)):  
The support is not specific to an agricultural product.  G/AG/N/GBR/9  
 
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  Table DS:2   
DOMESTIC SUPPORT: UNITED KINGDOM  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
___________________________________________________________________________  
 
(1) FULL TITLE OF MEASURE:  
Environmental land management pilot scheme: Sustainable Farming Incentive (SFI)  
(2) DOM ESTIC LEGISLATION REFERENCE:  
The Agriculture Act 2020 (section 1) and The Agriculture (Financial Assistance) Regulations 2021  
(3) DETAILED DESCRIPTION OF MEASURE WITH REFERENCE TO CRITERIA:  
The Sustainable Farming Incentive (SFI) is one of three new scheme s under the Environmental Land 
Management programme, alongside the future Local Nature Recovery and Landscape Recovery 
schemes.  
These schemes aim to  deliver environmental benefits through sustainable farming incentive 
practices, while making a significant  contribution to achieving the goals of the UK 's 25 Year 
Environment Plan and a commitment to net zero emissions by 2050.  
Through these schemes, farmers and other land managers may enter into agreements to be paid 
for delivering the following:  
• clean and pl entiful water  
• clean air  
• thriving plants and wildlife  
• protection from environmental hazards  
• reduction of and adaptation to climate change  
• beauty, heritage and engagement with the environment  
Further information may be found at this weblink . 
The aim of the SFI is to provide funding for farmers to make environmental improvements through 
activities such as improving wildlife habitats, maintaining and improving soils and encouraging the 
sustainable management of woodland. SFI is part of a clearly  defined government environmental 
and conservation programme, thus meeting the requirements of paragraph 12 (a) of Annex 2. 
The territorial scope of the scheme is England -only. 
From 2021 -24, the SFI Pilot will trial elements of the full SFI offer, which wi ll begin with the "SFI early 
roll-out" scheme in Spring 2022. The SFI Pilot support will be government funded and grants will be 
administered by the Rural Payments Agency (RPA). The scheme is therefore classified as Green Box 
according to criteria in Annex  2 Paragraph 1(a), support provided "through a publicly -funded 
government programme (including revenue foregone) not involving transfers from consumers. "  
Support is limited to costs incurred and income foregone by landowners delivering the actions of the 
SFI Pilot, therefore complying with Annex 2, paragraph 12(b) and, paragraph 1(b) that support shall 
not have the effect of providing price support to agricultural producers.  
(4) COST OF MEASURE:  
The total cost of the measure is GBP 57.2 million   G/AG/N/GBR/9  
 
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  (5) DA TE OF ENTRY INTO EFFECT:  
07 July 2021  
(6) PERIOD OF APPLICATION:  
July 2021 -March 2025  
(7) PRODUCTS TO PRINCIPALLY BENEFIT (IF ANY INDIVIDUAL PRODUCT(S)):  
The support is not specific to any agricultural product.  
 
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