FARMERS will continue to receive the same level of funding as they do under the current Common Agricultural Policy until the end of 2020.

Chancellor Philip Hammond's announcement has been broadly welcomed by farming organisations.

He also gave an assurance that agri-environment schemes, signed before November's Autumn statement, will also be fully funded even when they continue after the UK leaves the European Union.

He said: "We are determined to ensure that people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities."

Andrea Leadsom, Environment Secretary, said: "This guarantee of funding is excellent news for our farmers and our environment.

"It means farmers are assured of current levels of funding until 2020 and any agri-environment schemes agreed before the Autumn Statement will be fully funded – even when these projects continue beyond the UK’s departure from the EU.

"I look forward to working with the industry, rural communities and the wider public to shape our plans for food, farming and the environment outside the EU."

Meurig Raymond, NFU president, welcomed the announcement. He said: "With the agricultural budget now retained, and agri-environment agreements and BPS payments now honoured, I am delighted that the Prime Minister and Defra have understood the importance of farming and food production.”

The NFU is now working with Defra to understand the position of farmers applying for Countryside Stewardship in September.

Ross Murray, president of the Country Land and Business Association (CLA), said the announcement was "a strong signal that will give confidence to businesses considering their future in a difficult agricultural market."

The CLA would seek clarification as to the implications for agri-environment schemes where applications are underway but which have to be agreed.

He said: "The decision suggests that applications made under this year’s Countryside Stewardship scheme for example are likely to be considered and agreements will be funded, but it’s not wholly clear. There is no clarity on whether there will be a programme in 2017 and 2018. We will press for a further statement that properly clarifies the situation."

Stephen Wyrill, national chairman of the Tenant Farmers Association (TFA), said: "The Government’s announcement provides an important assurance to the farming community that its intention is not to leave the industry high and dry as we leave the European Union.

"The CAP has had many critics both within and outside of Government. However now we have the chance to put together a package of measures that better reflects our country and respects devolution."

Robyn Peat, managing partner of George F White land , property and business consultancy, said: "We hope the Government continues to address the much needed support that our farmers need and, as work gets underway to figure out how a UK farming economy will work outside Europe, it’s vital that plans are put in place to protect our farmers and set out guarantees for not only their short-term but long-term future too."