Last amended by Statutory instruments under s.1 in 2024. Multiple statutory instruments under s.1 have expanded the Sustainable Farming Incentive (SFI) actions, with the 2023 SFI offer significantly expanding the range of paid actions available to English farmers from January 2024.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Agriculture Act 2020 establishes the post-Brexit framework for agricultural support in England. It replaces the EU's Common Agricultural Policy (CAP), which had centred on area-based direct payments to landowners, with a new system of 'public money for public goods'. The Act empowers the Secretary of State to give financial assistance to land managers for achieving environmental, social, and agricultural outcomes, rather than simply for farming land. The transition period (2021-2028) progressively reduces legacy direct payments while new Environmental Land Management (ELM) schemes are introduced: the Sustainable Farming Incentive (SFI) for standard environmental management, Local Nature Recovery for more ambitious local nature projects, and Landscape Recovery for large-scale ecosystem restoration. Beyond financial assistance, the Act creates a fair dealing regime for agricultural supply chains, requiring written contracts and prohibiting unfair trading practices; establishes a duty on the Secretary of State to report on food security; allows retention and reform of marketing standards for agricultural products; and provides for producer organisations and data-sharing obligations. The Act applies only to England — Wales, Scotland, and Northern Ireland have their own post-Brexit agricultural legislation.
Key Points
- Section 1: Secretary of State may give financial assistance for specified purposes including protecting the environment, public access to the countryside, managing flood risk, promoting animal health and welfare, and supporting rural communities — the 'public goods' framework
- Sections 3-4: agricultural transition period 2021-2028 — direct payments are progressively reduced and eventually abolished; new ELM schemes (SFI, Local Nature Recovery, Landscape Recovery) replace them
- Section 8: multi-annual financial assistance plans must be published by the Secretary of State, setting out the amounts and purposes of financial assistance
- Part 3 (ss.23-33): fair dealing in agricultural supply chains — the Secretary of State may by regulations impose requirements for written contracts, fair dealing obligations, and fair distribution of profits in sectors designated by order
- Section 19: food security reporting — the Secretary of State must report to Parliament on food security matters at least every 5 years, covering UK self-sufficiency, global food markets, and supply chain resilience
- Part 5: marketing standards — retained EU law on marketing standards for agricultural products may be amended by statutory instrument
Parts & Sections
Amendments History
2021 — Agriculture (Retained EU Law and Data) (Scotland) Act 2020
Scotland enacted parallel legislation establishing its own framework for agricultural support after EU exit, operating separately from the England 2020 Act.
2024 — Statutory instruments under s.1
Multiple statutory instruments under s.1 have expanded the Sustainable Farming Incentive (SFI) actions, with the 2023 SFI offer significantly expanding the range of paid actions available to English farmers from January 2024.
Frequently asked questions
- What is the main purpose of the Agriculture Act 2020?
- The Agriculture Act 2020 replaces the EU's Common Agricultural Policy with a 'public money for public goods' system. It allows the Secretary of State to provide financial assistance to land managers for achieving environmental, social, and agricultural outcomes, rather than simply for farming land. This includes protecting the environment, managing flood risk, and supporting rural communities.
- How does the Act change direct payments to farmers?
- The Act introduces a transition period from 2021 to 2028. During this time, legacy direct payments are progressively reduced and eventually abolished. They are replaced by new Environmental Land Management schemes: the Sustainable Farming Incentive for standard management, Local Nature Recovery for local projects, and Landscape Recovery for large-scale ecosystem restoration.
- What rules does the Act introduce for agricultural supply chains?
- Part 3 of the Act allows the Secretary of State to make regulations for designated agricultural supply chains. These regulations can require written contracts, impose fair dealing obligations, mandate transparent price sharing, and prohibit unfair trading practices. The aim is to ensure a fairer distribution of profits between agricultural suppliers and purchasers.
- Does the Act require any reporting on food security?
- The Act requires the Secretary of State to report to Parliament on food security matters at least every five years. These reports must cover UK self-sufficiency, global food markets, and the resilience of supply chains. This duty ensures regular parliamentary oversight of the nation's food security position.
- Does this Act apply to the whole of the UK?
- No, the Agriculture Act 2020 applies only to England. Wales, Scotland, and Northern Ireland have their own separate post-Brexit agricultural legislation. For example, Scotland enacted its own Agriculture (Retained EU Law and Data) (Scotland) Act 2020 to establish its distinct framework for agricultural support.