Lump Sum Exit Scheme

[DRC]

Local idiot land agent was just talking to me about this the other day,and was getting quite excited about the prospect of Dad walking away with the money,and son continuing to farm(with Dad still overlooking things obviously) ...............guess Defra hadnt thought of that wheeze.

But if you continue to farm , the business would still get the money , just spread out over the next 7 years .
Might be useful for tenant farmers thinking of retiring or doing something else

 

[teslacoils]

There will be any number of experts advising how you can retire......but also not retire. I'll retire tomorrow.....and let it to a new entrant....if that new entrant is the existing contractor doing the same stuff but with a bit of a nod / handshake "tenancy".

Cos sure as eggs is eggs, HM govt will have consulted with agents who will have already built in ways around it to sell to farmers. Double win.

 

[bigw]

I think there will be a real push to remove livestock in the next 10 years, a dignified exit may well suit many people.

 

[DRC]

There will be any number of experts advising how you can retire......but also not retire. I'll retire tomorrow.....and let it to a new entrant....if that new entrant is the existing contractor doing the same stuff but with a bit of a nod / handshake "tenancy".

Cos sure as eggs is eggs, HM govt will have consulted with agents who will have already built in ways around it to sell to farmers. Double win.

Depends on tax implications as well.
After 2024 you will be able to get the rest of your BPS yearly , without it being attached to land , so this would be a pension top up for 3 yrs

 

[Farmer Fin]

There's a rich widow that lives in Windsor that has a few acres. I wonder if she's thinking of letting the next lot have a go?

Same issue as a lot of farmers. She doesn’t trust the next generation not to screw it up!!!

 

[Still Farming]

Will it apply across the board or JUST England?
How much COULD it possibly be?
Take the money ,stay and do the same ,give kids ago and get Young Farmer and New Entrants money too???

 

[Tim W]

With the consultation due out on the exit scheme next week, is anyone interested in taking this payment and what would it need to be to incentivise you?

Please post a link to the consultation when it comes out?

 

[delilah]

Take the money ,stay and do the same ,give kids ago and get Young Farmer and New Entrants money too???

A neat summary of why it will be an agents and accountants delight, with no 'public good'.
There shouldn't be an exit scheme, there shouldn't be a new entrant scheme. Rather, ELMS in itself should be designed to encourage a more vibrant industry, one where year on year there are more, not less, farmers.

 

[ISCO]

It will be attractive to farmers and in particularly tenants who are wanting to retire in any event.
If it is available to farmers to retire and just hand over to son who carries on as before, then that will.not achieve any positive outcome as son would have taken over in any event. In this situation would son then be prevented from claiming bps or ELMS etc.?

 

[Still Farming]

A neat summary of why it will be an agents and accountants delight, with no 'public good'.
There shouldn't be an exit scheme, there shouldn't be a new entrant scheme. Rather, ELMS in itself should be designed to encourage a more vibrant industry, one where year on year there are more, not less, farmers.

Everyone gets old.
The conveyor belt KEEPS going sadly!

 

[Courier]

Anybody remember the Non Marketing of Milk Scheme or the Dairy herd Conversion Scheme?

When I was working in the UK I spent time with a well known firm of Solicitors helping them extract a small fortune from the EU as a result of that mess.

The key point in that is that it was an EU based scheme which had input from other EU member states which were, and still are far more rural based than the UK on its own particularly with the lack of current working farmer representation at Westminster.

 

[B'o'B]

I’m going to guess taking the retirement payment will result in closure of RPA account and loss of entitlements.
After the retirement scheme launches new RPA accounts won’t will be able to claim any BPS money only ELMS and SFI.

It’s not that difficult to ensure that there is no double payment, most of the schemes above rely on BPS carrying on to achieve the double funding. It’s not carrying on, it is in a 7 year terminal decline.

What is coming after doesn’t replace BPS, it is a replacement for Countryside Stewardship and the productivity grants.

 

[DRC]

I’m going to guess taking the retirement payment will result in closure of RPA account and loss of entitlements.
After the retirement scheme launches new RPA accounts won’t will be able to claim any BPS money only ELMS and SFI.

It’s not that difficult to ensure that there is no double payment, most of the schemes above rely on BPS carrying on to achieve the double funding. It’s not carrying on, it is in a 7 year terminal decline.

What is coming after doesn’t replace BPS, it is a replacement for Countryside Stewardship and the productivity grants.

Yes this is definitely what it is about. Its a percentage of the BPS you could claim over the following years until it’s all gone. Not sure why anyone thinks they could take it, then have a son or daughter carry on claiming .

 

[farmerm]

Take someone sitting on a 200 ac farm valued at over £2million quid and pocket change of £50K as a lump sum rather than payment over 5 years is going to encourage them quit, I think not many.

 

[teslacoils]

Will also depend how it's taxed. I don't want to pay 40 percent on it.....or even one percent really.

 

[Hfd Cattle]

What happens to my farm then if I took the payment ?

 

[Still Farming]

I’m going to guess taking the retirement payment will result in closure of RPA account and loss of entitlements.
After the retirement scheme launches new RPA accounts won’t will be able to claim any BPS money only ELMS and SFI.

It’s not that difficult to ensure that there is no double payment, most of the schemes above rely on BPS carrying on to achieve the double funding. It’s not carrying on, it is in a 7 year terminal decline.

What is coming after doesn’t replace BPS, it is a replacement for Countryside Stewardship and the productivity grants.

Unless hand over to Children or someone you want to farm it possibly?

 

[Still Farming]

What happens to my farm then if I took the payment ?

Take the Landlord rent then unless tenanted?

 

[Lincsman]

Have I got this right? big payment for the last of the BPS (taxation might be an issue?) then free of all greening type stuff and boundary margins along with hedge trimming dates... IE crop as you like and possibly get paid for wild flowers?

 

[Still Farming]

Yes this is definitely what it is about. Its a percentage of the BPS you could claim over the following years until it’s all gone. Not sure why anyone thinks they could take it, then have a son or daughter carry on claiming .

Because Different people running it and you took the EXIT payment possibly???