51AVÊÓƵ

More rapid phase out announced for BPS payments

Alex Black
clock • 2 min read
More rapid phase out announced for BPS payments

Defra has announced a much more rapid phasing out of the de-linked Basic Payment Scheme (BPS) payments for farmers in England than was previously expected.

While much of the focus following the Autumn Budget has been on the changes to Agricultural Property Relief (APR), industry experts have warned farmers that de-linked BPS payments will be phased out more quickly.

READ NOW: Autumn Budget 2024: What do farmers need to think about?

Jonathan Armitage, Strutt and Parker head of farming, said: "Most farmers had been expecting a continuation of the existing path to a zero payment by 2028.

Basic Payment Scheme

"In fact, no farmer will receive more than £7,200 from next year. For a farmer who received a payment of £100,000 (about 429ha) in 2020, the total payment will be more than £40,000 less over the period 2025-2027 than anticipated.

"This will clearly have a negative effect on farm businesses' cashflows and profits. Significant differences in approach are becoming clear between the devolved administrations as far as future farm support is concerned."

READ NOW: Defra Secretary says Government's commitment to farmers 'remains steadfast' after Budget anger

Nick Mullins, chartered surveyor and environment advisor for H&H Land & Estates, highlighted the fastest subsidy reductions would apply to those who historically received the largest payment.

"For example, the top 4% of recipients — who received over £100,000 in BPS in 2020 — will receive no more than £8,000 by 2025. In contrast, most farmers, who began with less than £10,000 in payments, will see a gradual reduction in their delinked payments but will continue to have access to funding through SFI and other schemes."

Autumn Budget

For 2025, the Rural Payments Agency will apply a 76% reduction to the first £30,000 of a payment, while making no payments for any portion of a payment above £30,000.  

READ NOW: Defra's £2.4bn Agriculture Budget at a 'tipping point'

Mr Mullins gave the example of a payment of £40,000, which would have a 76% reduction applied to the first £30,000 of the payment, a reduction of £22,800. A 100% reduction would be applied to the next £10,000, a reduction of £10,000.

The payment would be reduced by £32,800 to £7,200.  

"This should surely see increases to SFI and stewardship rates, but we cannot predict this."

Case 9564wd Tractor pick up hitch.

£±Ê°¿´¡

2023 Case CVX175

£±Ê°¿´¡

John Deere 6130M TLS

£±Ê°¿´¡

More on Politics

Defra pays out £57 million to farmers impacted by flooding

Defra pays out £57 million to farmers impacted by flooding

According to Defra, around 13,000 farmers were impacted by severe wet weather, including Storms Henk and Babet, between October and March last year

Rachael Brown
clock 27 November 2024 • 2 min read
Defra confirms some capital grants will be 'temporarily closed' due to 'unprecedented demand'

Defra confirms some capital grants will be 'temporarily closed' due to 'unprecedented demand'

Defra confirmed 76 grant items have been impacted. For farmers who have applied for a grant that is temporarily withdrawn, their application will be put on hold and will be contacted early next year

Rachael Brown
clock 27 November 2024 • 2 min read
Former Conservative Minister Jacob Rees-Mogg accused of 'hypocrisy' over farmer support

Former Conservative Minister Jacob Rees-Mogg accused of 'hypocrisy' over farmer support

The Sturdy family are waiting to hear the outcome of an appeal hearing which could result in around half of their arable farm being taken out of production for a solar farm. The Sturdy family's landlord is the FitzWilliam Trust Corporation. Ms Sturdy has claimed that one of its six trustees, Lady Helena Rees-Mogg, is the wife of Sir Jacob

Rachael Brown
clock 27 November 2024 • 2 min read