5. Total grants and subsidies
Total payments (including coupled support) increased by £24 million to £511 million in 2016, and increased £42 million to £554 million in 2017.
Direct Payments (Basic Payment Scheme, Greening and Young Farmer Payment) were 384 million in 2016 (75 per cent of payments or 12 per cent of total gross income; up £48 million, 14 per cent or 12 per cent real terms) increasing to £425 million in 2017 (77 per cent of payments or 11 per cent of total gross income; up £40 million, 11 per cent or eight per cent real terms). The increase in 2016 was due to a favourable exchange rate (€1=£0.85228) which offset an €8.5 million decrease in the amount paid out. The 2017 budgeted figures saw a €24 million increase in the initial euro amount, to €475 million, with a five per cent further weakening of the Sterling exchange rate (€1=£0.8947) resulting in an 11 per cent Sterling increase in pillar 1 payments.
Chart 6: Grants and Subsidies 2007-2017 source: Table 3
(excludes coupled support)
Other payments include the Less-favoured Areas Support Scheme, which accounted for £63 million in 2016, with £66 million estimated for 2017, and Rural Priorities payments which accounted for £14 million in 2016 and £13 million in 2017. The remaining schemes included the £2.4 million EU Milk Production Reduction Scheme in 2016.
Coupled support increased from £44 million in 2016 to £47 million in 2017. The figures are included in the livestock income in this publication's tables.