Currently, British farmers receive
£3.4 billion a year in subsidies under the EU Common Agricultural Policy. Controversially, the subsidies are based on
how much land a farmer owns and not on how much they produce. To mention a few specific examples, British dairy farmers obtain over
£56 million in EU direct payments which make up almost 40% of their annual profits. Lowland and upland livestock farmers receive about £38 million in subsidies which make up over 90% of their annual profits!
A sheep farmer from North York Moors national park in northern England, who owns about 700 sheep over 1,250 acres,
makes around £12,000 profit in a good year, and even this small income would be impossible without subsidies worth about £44,000 from the EU Common Agricultural Policy.
In comparison, farmers growing cereals obtain about £40 million in EU direct payments (equivalent to almost 80% of their annual profit) but
half of the cereals, pulses and oil crops are used for animal feed meaning that about £20 million of the subsidies for cereals are still for the livestock and dairy industry. And for fruit farms, the basic payment scheme only makes up roughly 10% of their annual profit (2014-2015).