The government said that farmers in England would be paid more for protecting the environment.
Increased payment rates may encourage more farmers to sign up for environmental land management schemes.
The EU has a common agricultural policy.
The NFU welcomed the rise, but warned it could be too little too late.
Dera said the new system would put money into farmers' pockets while enhancing nature and driving innovation in agriculture.
The announcement comes at a time when the cost of food production is going up.
Reallocated from the direct payment subsidies given to farmers under the EU scheme are the funds that will be used to increase the rates under ELMS.
David Exwood said it was not clear what work farmers would be paid for.
It risks being too little too late given the current economic challenges we are facing and the rapid erosion of direct payments.
Concerns had been raised that the nature-friendly payments system wouldn't be enough to keep small farms afloat.
An increase of 10% will be given to 30,000 farmers who have signed up to a countryside stewardship scheme.
hedgerow creation will see an average payment increase of 42%.
Up to an extra £1,000 a year will be available under the sustainable farming incentive to help smaller businesses, including tenant farmers, cover the administrative costs of taking part.
The focus on smaller schemes was met with caution by environmental and conservativism groups that had raised concerns over the government's commitment to ELMS.
Harry Bowell is worried that money will be taken away from more ambitious environmental projects.
The risk is that a large proportion of the budget will now be spent on attracting farmers into the sustainable farming incentive scheme.
Tim Field, who leads a group of 120 farms across the Cotswolds, which is already piloting a larger-scale landscape recovery scheme, said he would be happy for smaller farms to take up environmental work.
He said that more needed to be done to support domestic food production.
Public money is needed to catalyse food and farming into restorer, not destroyer.
cheap imports produced to lower standards continue to undermine the price of home grown food, and this pump-priming public money will be insufficient to bridge the price discrepancy at the farm gate," he said.
Mark Spencer, the farming minister, made the announcement at the Oxford Farming Conference.
"As custodians of more than 70% of our countryside, the nation is relying on its farmers to protect our landscapes as well as produce the high-quality food we are known for, and we are increasing payment rates to make sure farmers are not out of pocket for doing the right thing," he
The schemes would help the UK meet its legally-binding environmental targets and its aim of stopping biodiversity decline by the year 2030.
Under the EU's CAP system, farmers were given subsidies based on the amount of land they held, meaning larger land owners benefited the most.
More information on the environmental work that will be paid for will be announced at the end of the month.
Each nation has its own subsidy scheme for agricultural policy.
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