Legal background
As the UK has been a member of the EU, UK farmers have been able to claim Direct Payments under the basic act (Regulation ((EU) No 1307/2013) and the implementing and delegated acts (Regulation (EU) No 639/2014 and 641/2014). Conditionality, inspections and penalties are contained in cross cutting regulations (the basic act is Regulation (EU) No 1306/2013 and the implementing and delegated acts under this Regulation include Regulation (EU) Nos 907/2014, 908/2014, 809/2014 and 640/2014).
	Under the terms of the WA, EU law continues to be applicable in the UK during the implementation period, which is defined in Article 126 as starting on the date of entry into force of that Agreement and ending on 31 December 2020.
	Article 137 of the WA provides that Regulation (EU) No 1307/2013 (which governs Direct Payments to farmers) shall not apply in the UK for claim year 2020 save for Article 13 of that Regulation (the state aid exemption). Whilst Article 137 of the Withdrawal Agreement expressly refers to Regulation (EU) 1307/2013, it is also intended to capture legislation connected to the application of that Regulation, and such legislation is captured within the Act.
	The effect of that Article in the WA therefore means that the law enabling the Direct Payments scheme to continue and payments to be made for the 2020 claim year will have no force in law from exit day (as defined in section 20(1) of the European Union (Withdrawal) Act 2018 (2018 Act) to mean at 11:00pm on 31 January 2020). Consequently, to allow the scheme to continue for the rest of the 2020 claim year it will need a basis in law.
	By incorporating EU legislation governing Direct Payments to farmers into domestic law, the Act provides the legislative vehicle required to enable the Direct Payments scheme to continue for the whole of claim year 2020 and crucially for payments under that 2020 scheme to be made to farmers. The Act includes powers to make regulations to amend that body of law to enable it to work effectively. It also provides a power to enable amendments in 2020 should DEFRA or the devolved administrations need to replicate any amendments made to the equivalent European body of law.
	The Act also amends the Direct Payments basic act (Regulation (EU) No 1307/2013) to include a discretion to increase the total maximum amount of direct payments for claim year 2020. This enables the Government to implement its decision which was made following the Bew Review, within the legislative framework.