Selling/Transferring Delinked payments reference years data

[JohnDeere8530]

Something that I do not fully comprehend...

Say Farmer A, after claiming BPS on his farm in the 2020 & 2021 reference years sells his farm late in 2021 to Farmer B

Farmer B then rents this land on a FBT to Farmer C in late 2021 to a tenant, who then claims BPS on that land in years 2022 & 2023 (as he is farming it and the entitlements were transferred direct from Farmer A, the original owner, straight on to him)


In the above scenario, can Farmer A, the old landowner, (or even maybe Farmer B, the new landowner) claim the first two years' reference data (2020/1) for delinked payments purposes - even though neither of them farmed that land in the eligibility year of 2023 (or in the final reference year 2022)?

It is not clear from the RPA guidance - as it only states to be eligible for delinked payments you have to have claimed BPS in 2023. It doesn't make clear if the claim has to be on the land in question, or land anywhere

Incidentally, Farmer A, the original owner. never closed down his account with the RPA, it was left active, but nothing was claimed since end of 2021 onwards - so, I assume he would not be eligible to lay claim 2020/1 reference year data(due to missing the 2023 claim) ?

To conclude, I am not sure if Farmer C is the only one that has a legal, or even moral right to the 2020/1years reference data - or can any of the three farmers in this scenario claim?

I want to do the right thing, without giving too much away!

Thoughts please ....?

 

[Flatland guy]

Something that I do not fully comprehend...

Say Farmer A, after claiming BPS on his farm in the 2020 & 2021 reference years sells his farm late in 2021 to Farmer B

Farmer B then rents this land on a FBT to Farmer C in late 2021 to a tenant, who then claims BPS on that land in years 2022 & 2023 (as he is farming it and the entitlements were transferred direct from Farmer A, the original owner, straight on to him)


In the above scenario, can Farmer A, the old landowner, (or even maybe Farmer B, the new landowner) claim the first two years' reference data (2020/1) for delinked payments purposes - even though neither of them farmed that land in the eligibility year of 2023 (or in the final reference year 2022)?

It is not clear from the RPA guidance - as it only states to be eligible for delinked payments you have to have claimed BPS in 2023. It doesn't make clear if the claim has to be on the land in question, or land anywhere

Incidentally, Farmer A, the original owner. never closed down his account with the RPA, it was left active, but nothing was claimed since end of 2021 onwards - so, I assume he would not be eligible to lay claim 2020/1 reference year data(due to missing the 2023 claim) ?

To conclude, I am not sure if Farmer C is the only one that has a legal, or even moral right to the 2020/1years reference data - or can any of the three farmers in this scenario claim?

I want to do the right thing, without giving too much away!

Thoughts please ....?

If farmer A or B did not fill in a form for Bps in 23 will not get anything. The payment is the average of years 2020, 2021 and 2022. So farmer C can only claim a third (2022 claim) of the intended Bps unless they buy/given the rights of farmers A and/or B. However very unlikely to be given the rights so have to make a worthwhile payment that is fair to both parties or Farmer A and B will just let it expire.
That is my take on it.

 

[Goweresque]

In the above scenario, can Farmer A, the old landowner, (or even maybe Farmer B, the new landowner) claim the first two years' reference data (2020/1) for delinked payments purposes - even though neither of them farmed that land in the eligibility year of 2023 (or in the final reference year 2022)?

No, A will not get any delinked payments unless he made a claim for BPS in 2023, somewhere. He will however have 2/3rds reference data he can transfer to another SBI if he chooses (for money one assumes). Farmer B (the new landlord) will have no reference data having not claimed in 20, 21 or 22. Nor can he buy any in, as he did not claim in 23 either.

Farmer C will get a one third reference data amount, based on his 22 claim, and because he claimed in 23 will get that money for the next 4 years even if he stops farming the land before the payments end in 2027. He is best placed to buy in Farmer A's reference data. But could buy it from anywhere really, there's no need to buy it from A, if A is demanding too much for it for example. A and C both have a vested interest in coming to a deal for A's reference data - A because he'll get nothing if he doesn't sell it, C because buying it is 'free' money (for an investment).

Do bear in mind there is a £30k limit to how much reference data any SBI can import, above that you'll have to prove to the RPA that land has changed hands, a sale or FBT for example.

Incidentally, Farmer A, the original owner. never closed down his account with the RPA, it was left active, but nothing was claimed since end of 2021 onwards - so, I assume he would not be eligible to lay claim 2020/1 reference year data(due to missing the 2023 claim) ?

You don't claim reference data, it gets given to you automatically. I have just such an inactive SBI - it made its last BPS claim in 2020, and nothing since, yet I have a letter from the RPA detailing what its reference data amount is - basically one third of the annual claim, as it claimed in one of the three reference years. It will not get the delinked payments, having not claimed in 2023, but can transfer the reference data out to someone else who did claim in 23, which is what I will do.

To conclude, I am not sure if Farmer C is the only one that has a legal, or even moral right to the 2020/1years reference data - or can any of the three farmers in this scenario claim?

As above, no one claims anything, the delinked payments system is purely automatic. The only thing SBI holders may do is transfer reference data between themselves. If they don't and do not qualify for delinked payments that money is lost back into Defra's coffers.