In 2015, the government announced a £10bn boost in farm subsidies.
Agriculture is the biggest source of new tax revenue for the government and has been a major source of government expenditure for the past five years.
But the amount of subsidies that have been paid out has grown over the past three years.
The number of farmers receiving subsidies has more than doubled since 2015, from 623,000 to 1.9 million, and the amount paid out is more than double that, from £5.6bn to £8.1bn.
A new government review found the current subsidies system is “uncompetitive” and could leave farmers vulnerable to “unreasonable and unjustified” competition.
In a bid to reduce the gap between farmers and the government, the Government has proposed a system where payments are based on how much the farm can grow in the current year and not how much it will cost in the next year.
The review also recommended that subsidies should only be given to farmers who have the potential to grow a certain amount of food each year, and it recommended the subsidy payouts be based on the number of acres that can be produced, rather than the value of a crop.
The Government has also proposed making farmers pay more for their land and said the system would help farmers make “significant gains” in the long term.
But in a report published on Wednesday, the Department for Environment, Food and Rural Affairs (Defra) said that it would be “difficult to achieve” its goals of “ensuring the best return for taxpayers”.
“The current system does not provide sufficient certainty for farmers to maximise their returns,” the report said.
It said that “in the current environment, there is a high risk that payments will not be available to those who are ready to invest and are able to demonstrate a level of productivity that is sustainable in the medium and long term”.
The report suggested that farmers could be “enticed to invest in new and improved equipment and equipment that can meet the future needs of the future, or to upgrade their existing equipment”.
The Department for Food and the Environment (Defa) also said that in the past, it has paid out around £1bn in subsidies in England in the form of cash payments.
“It is vital that taxpayers’ money is not wasted on those who do not need it,” it said.
What is the latest research into the farming subsidy system?
The research, by the Centre for Policy Research (CPR), found that the average farm subsidy paid to farmers has more in common with a tax payment than a tax rebate.
The average farm tax payment in England is £15.62 a week, or around £7.30 a day.
The data showed that the total subsidy paid by farmers has doubled in the last three years, from a record £1.6 billion in 2015 to £6.1 billion in 2016.
However, it found that only 20% of the farm subsidy received in England came from the public purse.