Early exit scheme

neilo

Member
Mixed Farmer
Location
Montgomeryshire
I have met at-least one AHA tenant who's given notice to their landlord with the intention of collecting the Exit Scheme cheque this Autumn, but I have only met one. They've already re-let the farm, so not sure what happens if the exit scheme doesn't appear!

In theory for older tenants who have no assets the exit scheme is a parachute for a graceful retirement, but as the above email from the agents shows it's open for potential abuse.

Presumably he would be able to sell the entitlements instead in that case?
 

Formatted

Member
Livestock Farmer
Presumably he would be able to sell the entitlements instead in that case?
Although if a tenant claims it on retirement, the land owner won't be seeing it at all.
My understanding of the information in the last consultation is that it wasn't about the land anymore, and more the individual. You could pay out Farmer A and then Farmer B would still be able to for the remainder of the BPS period. They were paying for this difference out of the stepped reduction in payments starting this year based on farm size. The details though aren't clear and that might all change
 

Hindsight

Member
Location
Lincolnshire
My understanding of the information in the last consultation is that it wasn't about the land anymore, and more the individual. You could pay out Farmer A and then Farmer B would still be able to for the remainder of the BPS period. They were paying for this difference out of the stepped reduction in payments starting this year based on farm size. The details though aren't clear and that might all change

Your missing a word after able and before to, to make sense of your second sentence. I presume (one should never presume!) you are missing 'claim' ??
 

neilo

Member
Mixed Farmer
Location
Montgomeryshire
My understanding of the information in the last consultation is that it wasn't about the land anymore, and more the individual. You could pay out Farmer A and then Farmer B would still be able to for the remainder of the BPS period. They were paying for this difference out of the stepped reduction in payments starting this year based on farm size. The details though aren't clear and that might all change

Presumably the individual’s entitlements would be deactivated when he took the exit payment, so any new claimant on that land would need to acquire entitlements of their own, be that from new entrant schemes or the market?
 

2tractors

Member
Location
Cornwall
Presumably the individual’s entitlements would be deactivated when he took the exit payment, so any new claimant on that land would need to acquire entitlements of their own, be that from new entrant schemes or the market?
Yes and not only the individuals entitlements but any leased in from a n other- that may cause some anst. Hopefully the results of the consultation may amend this bit!
 

Dry Rot

Member
Livestock Farmer
Anyone old enough to remember the Farms Amalgamation Scheme back in the 1970s? That seemed to work pretty well as I recall. Worked for plenty who wanted to get out of farming for whatever reason but especially for smaller farmers. But I wouldn't expect DEFRA to follow any example that actually worked! :rolleyes:
 

Bramble

Member
@Janet Hughes Defra
When can we expect a scheme to work towards. This hiatus is not helping anyone.

leaving the sector does not happen overnight and this is another scheme where too much has been promised and another case of under delivering.

At what point does DEFRA put their hands up and say they do not have the resources to implement this?

Also when is the Dairy Contract consultation going to report any findings/proposals?? Or have I missed it?
 

Goweresque

Member
Location
North Wilts
Yes and not only the individuals entitlements but any leased in from a n other- that may cause some angst. Hopefully the results of the consultation may amend this bit!

Yes according to Defra's current wording anyone on an FBT with leased in entitlements will (if they hold the entitlements on whatever date is the crucial one) will be able to take the lump sum and the entitlements will be annulled and the landlord loses all future payments, even if the tenancy was about to end.

But the wording of FBTs also makes it clear that the tenant must return the entitlements at the end of the tenancy so if a tenant took the lump sum and retired they would then presumably be very likely to be sued by the landlord for breach of the tenancy agreement.

Obviously it would be different for AHA tenants as they have always held the entitlements, and will hold them until the end of BPS if they continue farming, so the landlord in that situation could never have considered the entitlements were theirs. So in effect as regards to the retirement scheme an AHA tenant is in roughly the same position as a owner occupier.
 
@Janet Hughes Defra
When can we expect a scheme to work towards. This hiatus is not helping anyone.

leaving the sector does not happen overnight and this is another scheme where too much has been promised and another case of under delivering.

At what point does DEFRA put their hands up and say they do not have the resources to implement this?
We'll be publishing some information about this today - I'll share the information on a new thread shortly
 
Also when is the Dairy Contract consultation going to report any findings/proposals?? Or have I missed it?
On the dairy contract - we published the government's response to the consultation responses in February last year - we're now working up some regulations and plan to introduce legislation later this year, but there will be a period of adjustment before the legislation becomes enforceable - if you've got a particular interest in this, I'd be happy to introduce you to the policy officials working on it (they're not directly in my team but we work alongside each other) - dm me your details if that would be of interest.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 102 41.5%
  • Up to 25%

    Votes: 90 36.6%
  • 25-50%

    Votes: 36 14.6%
  • 50-75%

    Votes: 5 2.0%
  • 75-100%

    Votes: 3 1.2%
  • 100% I’ve had enough of farming!

    Votes: 10 4.1%

May Event: The most profitable farm diversification strategy 2024 - Mobile Data Centres

  • 856
  • 13
With just a internet connection and a plug socket you too can join over 70 farms currently earning up to £1.27 ppkw ~ 201% ROI

Register Here: https://www.eventbrite.com/e/the-mo...2024-mobile-data-centres-tickets-871045770347

Tuesday, May 21 · 10am - 2pm GMT+1

Location: Village Hotel Bury, Rochdale Road, Bury, BL9 7BQ

The Farming Forum has teamed up with the award winning hardware manufacturer Easy Compute to bring you an educational talk about how AI and blockchain technology is helping farmers to diversify their land.

Over the past 7 years, Easy Compute have been working with farmers, agricultural businesses, and renewable energy farms all across the UK to help turn leftover space into mini data centres. With...
Top