BPS reduction chart

[steveR]

Good and easily read graphic.

Dunno be glad or sad that we are in the 5% bracket! Came with the Caveat, that this ALL could change!!

 

[Farma Parma]

The Joys eh.... Rents gonna have to drop (Unsure how tho)
Is there not a bigger chart that shows the whole picture as the years go by
because as ive seen it our BPS will be at a 50% reduction by end of 2024

 

[Formatted]

Good and easily read graphic.

Dunno be glad or sad that we are in the 5% bracket! Came with the Caveat, that this ALL could change!!

The Joys eh.... Rents gonna have to drop (Unsure how tho)
Is there not a bigger chart that shows the whole picture as the years go by
because as ive seen it our BPS will be at a 50% reduction by end of 2024

This is BPS capping, which comes into force next year. BPS reduction is 20% per year between 2022 and 2027, with 2028 being £0!

E.g a 150 ha farm would get paid as follows

2020 = £34,200 (£92 per acre/£228 per hectare)

2021 = £31,806 (£86 per acre/£212 per hectare)

2022 = £27,292 (£74 per acre/£182 per hectare)

2023 = £22,709 (£61 per acre/£151 per hectare)

2024 = £18,195 (£49 per acre/£121 per hectare)

2025 = £13,612 (£37 per acre/£91 per hectare)

2026 = £9,097 (£25 per acre/£61 per hectare)

2027 = £4,583 (£12 per acre/£31 per hectare)

2028 = £0

 

[Steevo]

Exactly as above.

Small farms get hit slowly at first, then bigger toward the end.

Large farms get hit hard at first, then it peters out much slower towards the end.

 

[DieselRob]

This is BPS capping, which comes into force next year. BPS reduction is 20% per year between 2022 and 2027, with 2028 being £0!

E.g a 150 acre farm would get paid as follows

2020 = £34,200 (£92 per acre/£228 per hectare)

2021 = £31,806 (£86 per acre/£212 per hectare)

2022 = £27,292 (£74 per acre/£182 per hectare)

2023 = £22,709 (£61 per acre/£151 per hectare)

2024 = £18,195 (£49 per acre/£121 per hectare)

2025 = £13,612 (£37 per acre/£91 per hectare)

2026 = £9,097 (£25 per acre/£61 per hectare)

2027 = £4,583 (£12 per acre/£31 per hectare)

2028 = £0

Did you do the maths or copy and paste it? 150ac @ £92/ac is £13,800 not £34,200, that would be the payment for 150ha!

 

[Northern territory]

That’s what I thought

 

[Formatted]

Did you do the maths or copy and paste it? 150ac @ £92/ac is £13,800 not £34,200, that would be the payment for 150ha!

Its from a Fisher German report, its 150ha not acres my bad

 

[DieselRob]

Its from a Fisher German report, its 150ha not acres my bad

Not worth the paper or website it is printed on then

 

[Formatted]

Not worth the paper or website it is printed on then

If you mean its because they don't know or the government hasn't announced anything you can go read the agricultural bill which outlines the phase out and framework for new payments.

 

[DieselRob]

If you mean its because they don't know or the government hasn't announced anything you can go read the agricultural bill which outlines the phase out and framework for new payments.

I have read the phase out framework myself and I understand it but my comment refers to their inability to give an example scenario and execute the mathematics correctly, or do they really think their 150ac clients are receiving upwards of 30k of BPS?

 

[Formatted]

example scenario and execute the mathematics correctly, or do they really think their 150ac clients are receiving upwards of 30k of BPS?

They don't, I copied and pasted it wrong, its actually 150 hectares, 363 acres...

 

[yellow belly]

The Joys eh.... Rents gonna have to drop (Unsure how tho)
Is there not a bigger chart that shows the whole picture as the years go by
because as ive seen it our BPS will be at a 50% reduction by end of 2024

Serve a notice on your land lord
done it twice and got reductions

 

[yellow belly]

Its from a Fisher German report, its 150ha not acres my bad

The amounts of reduction for future years and based on the first years reduction and that the final year will be nothing
we also have an election befor 2027 and have to get the current crisis under control
as well as fit in with any free trade agreements

farm On the basis of the facts we know to day

the facts to day are reduction for 2021 so plan to reduce costs ( rent revue )

 

[Farma Parma]

Serve a notice on your land lord
done it twice and got reductions

Id say everyone will have no choice

 

[getting on]

This is BPS capping, which comes into force next year. BPS reduction is 20% per year between 2022 and 2027, with 2028 being £0!

E.g a 150 ha farm would get paid as follows

2020 = £34,200 (£92 per acre/£228 per hectare)

2021 = £31,806 (£86 per acre/£212 per hectare)

2022 = £27,292 (£74 per acre/£182 per hectare)

2023 = £22,709 (£61 per acre/£151 per hectare)

2024 = £18,195 (£49 per acre/£121 per hectare)

2025 = £13,612 (£37 per acre/£91 per hectare)

2026 = £9,097 (£25 per acre/£61 per hectare)

2027 = £4,583 (£12 per acre/£31 per hectare)

2028 = £0

Do you know something i don't? I thought the rates were fixed at the end of September based on the pound euro exchange rate.

 

[Formatted]

Do you know something i don't? I thought the rates were fixed at the end of September based on the pound euro exchange rate.

Do you not know that BPS is being phased out between now and 2027?

 

[getting on]

Do you not know that BPS is being phased out between now and 2027?

I know that but how do you arrive at the hectare payments for all the years up to 2027.

 

[B'o'B]

I know that but how do you arrive at the hectare payments for all the years up to 2027.

Because payments won’t be based on € exchange rate after this year as UK Treasury will be funding it in £ not Brussels in €.

 

[Farma Parma]

Because payments won’t be based on € exchange rate after this year as UK Treasury will be funding it in £ not Brussels in €.

all those who might have bought a forward exchange deal are kicking themselves now & i nearly did as i have done a few times in previous years
trying to protect some of that income if the rates dropped too low.
In all of about 6 years ive dabbled in hedging some of these forward deals ive never gained anything tho.
Time to get rid of that Euro Account, i cant see us needing it ever again now.

 

[Farma Parma]

Because payments won’t be based on € exchange rate after this year as UK Treasury will be funding it in £ not Brussels in €.

The Poxy banks didnt even know this & were still offering euro deals for a few months then in one email approx a couple of months ago the forward deals couldnt be offered anymore.