Written by Iain Hoey
The Government has published a consultation on changes to the Basic Payment Scheme (BPS) to support farmers through the agricultural transition period from now until 2027 which aims to deliver a better, fairer farming system in England.
The consultation will be open for 12 weeks and focuses on the lump sum exit scheme and delinked payments. The consultation will close for responses on 11 August 2021 and a full report on the responses to the consultation will be published later in the year.
Lump sum exit scheme – The Government has proposed to offer them a lump sum payment to help farmers who would like to retire or leave the industry but have found it difficult to do so for financial reasons to do this in a planned and managed way. The consultation seeks views on who should be eligible for these lump sum payments and how the payments should be calculated.
Delinked payments – The Government plans to phase Direct Payments out over a gradual seven year transition period, to move to a fairer system. The consultation includes plans to separate the payment from the amount of land farmed, from 2024, which aims to simplify the process for farmers, allow them to focus on running their business and encourage them to take up the government’s new environmental land management schemes, which will reward sustainable food production and environmental improvements. The consultation seeks views on how the ‘delinked’ payments will be calculated.
“We need to address the twin challenges of helping new entrants fulfil their dream and gain access to land, while also helping an older generation retire with dignity,” said Environment Secretary George Eustice.
“Our exit scheme will offer farmers who want to exit the industry all of the area payments they would likely have received until the end of the transition period in a single lump sum. It gives them a real incentive to confront what can often be a difficult decision and will help them clear bills and settle debts.
“By renting out their farm or surrendering their tenancy, those exiting the industry will create important opportunities for the next generation of farmers and later this year we will be saying more about our plans to work with County Farm estates and other land owners to ensure that we nurture the right conditions for new enterprises to flourish.”
Get Our E-Newsletter - breaking news to your in-box twice a week
See e-newsletter example
Will be used in accordance with our Privacy Policy
Continue reading on the Farm Business Website...
