Farming exit scheme Published 8 February 2022

[Derrick Hughes]

I don’t think the scheme is aimed at those with multiple farms or those staying in the industry.

I think that it is looking to incentivise those who are considering exiting to do this.

Hell of a big step for them then , giving up completely, I don't thing a small carrot will make much difference then

 

[BrianV]

Not really sure why the government would decide to make retiring farmers a special case for a retirement bung other than to generate bad publicity for “ungrateful” farmers not taking advantage of government generosity, seems everything this so called Tory bunch do is to the detriment of English farmers & should not be forgotten!

 

[midlandslad]

There are people leaving the sector every year, this is merely looking to accelerate that exit. That couple with the loss of the BPS which is so often crucial to the profitability of the farm.

 

[Derrick Hughes]

Not really sure why the government would decide to make retiring farmers a special case for a retirement bung other than to generate bad publicity for “ungrateful” farmers not taking advantage of government generosity, seems everything this so called Tory bunch do is to the detriment of English farmers & should not be forgotten!

Freeing up land for forests ?

 

[ajcc]

Maybe It’s all part of a “red tractor assessor recruitment scheme for their anticipated increase ELMs workload??”

 

[MrNoo]

If the older generation start charging their children for land there won't be any farming in this country.

There's not going to be any at the rate this Gov are carrying on anyway.

 

[Derrick Hughes]

Four out of five farmers aim to keep farming until the day they die, a survey has revealed.

The survey, carried out by the University of Exeter and backed by NFU Mutual, canvassed almost 700 farmers across England, Scotland and Northern Ireland.

 

[DRC]

Four out of five farmers aim to keep farming until the day they die, a survey has revealed.

The survey, carried out by the University of Exeter and backed by NFU Mutual, canvassed almost 700 farmers across England, Scotland and Northern Ireland.

What people say they do and end up doing are often completely different .

 

[Derrick Hughes]

What people say they do and end up doing are often completely different .

History gives you the answer , which is farmers don't retire

 

[Bossfarmer]

So if the tenancy is over, what does it matter to break the terms?
Put your assets into the wifes name and tell the landlord to swivel

Tell the landlord to swivel? Is it any surprise noone wants to rent land out on tenancies these dsys?

 

[Bossfarmer]

Why does the government want to stop old farmers all across the country with broken calculaters doing it for less than the cost of production? And keeping food prices down? Wait until theyre all gone and folk have to pay the true cost of production

 

[Derrick Hughes]

Good afternoon all

Today we've published information about our lump sum exit scheme for farmers who wish to exit the industry.

The new Lump Sum Exit Scheme will support farmers in England who wish to leave the industry though a lump sum payment, allowing them to exit the sector in a managed way. We expect farmers will be able to apply from April to the end of September 2022.

To be clear, this is not intended to push anyone to leave – it’s for those who want to leave, where a lump sum payment might help them to do so in a managed way.

We’ve also confirmed that the Government intends to legislate to make clear that lump sums paid out under the scheme will be treated as capital for tax purposes.

The news release is here: https://www.gov.uk/government/news/...upport-farmers-who-wish-to-leave-the-industry

The Government response following our consultation about the scheme last year is here: https://www.gov.uk/government/consu...rs-lump-sum-exit-scheme-and-delinked-payments

Details of the scheme can be found here: https://www.gov.uk/government/publi...-or-retire-from-farming-and-delinked-payments

Happy to answer any questions about the policy - the RPA are standing ready to answer any specific questions about your individual circumstances and eligibility on their normal helplines:

Email: [email protected]

Telephone: 03000 200 301

This would not suit me even if it was available in Wales and rollover relief defeats the argument , cutting CGT on land sold would help a lot , for someone who wanted to leave in a mannaged way

 

[Bracklandbarn]

Just to add to the irony of this scheme, I know of two farms (In different counties) who have been waiting for the scheme details to be announced. In both cases, they are county council aha tenancies and are looking to retire anyway. BPS has more than covered their rent for the last few years and the farms are largely sub-let (under the radar ), but have delayed (!) giving notice until this scheme was announced so see if there’s more £ to be made from leaving. The whole job stinks, and it’s another PR sh!t storm for UK ag.

 

[DRC]

History gives you the answer , which is farmers don't retire

There are 1000s of less farmers than there were even 20 years ago.

 

[Fuzzy]

So as a Tenant Farmer if i retire with 100HA of entitlement. I then terminate my tenancy, which requires me to hand back the entitlements to the landlord. What evidence am i required to provide to you and how much will i be paid?

@Janet Hughes Defra

 

[Bruce Almighty]

@Janet Hughes Defra
Last September I took on another farm on a 3 year FBT.
Our successful rent tender included buying entitlements from the previous tenant and claiming them for 3 years.
Agent's delays with the tenancy not being fully complete until Christmas means we are still dealing with land and entitlements transfer from the previous tenant.
I kept pushing them to get on with it but couldn't do any more.
This new scheme means we could seriously lose out.

Likewise the Sustainable Farming Incentive is likely to be of any use to us as we can't guarantee 3 years occupation from now.

Whilst I appreciate you communicating on here I feel like we have been let down with poorly thought out schemes

 

[Janet Hughes Defra]

@Janet Hughes Defra
Last September I took on another farm on a 3 year FBT.
Our successful rent tender included buying entitlements from the previous tenant and claiming them for 3 years.
Agent's delays with the tenancy not being fully complete until Christmas means we are still dealing with land and entitlements transfer from the previous tenant.
I kept pushing them to get on with it but couldn't do any more.
This new scheme means we could seriously lose out.

Likewise the Sustainable Farming Incentive is likely to be of any use to us as we can't guarantee 3 years occupation from now.

Whilst I appreciate you communicating on here I feel like we have been let down with poorly thought out schemes

On SFI - you can come into SFI this year if you only have 2 years left on your tenancy when your agreement starts - we put this rule in place to make the scheme more accessible to people in your situation.
On the exit scheme - can you say a bit more about why the scheme could make you lose out?

 

[Still Farming]

Freeing up land for forests ?

Some making mega money for mountains to plant trees for carbon offsetting too!

 

[merino]

Give it with one hand and take away with the other.

Not sure what £100k is supposed to buy if you are a skint tenant.

A lot less buying power than two years ago and barely enough to buy just a new tractor,never mind a small rural property in your community with some meagre savings to go through retirement.

Average house price here is £290k.

The annuity is surely going to be less than the rent for a property as well.

 

[Still Farming]

There are 1000s of less farmers than there were even 20 years ago.

Bet they would of took exit scheme money?