Lister Haigh is advising farmers on the changes to the BPS.
Future of the Basic Payment Scheme
The way in which Basic Payment (including the greening element) is to be reduced from 2021 – 2024 has been announced. The Direct Payment reductions will be in bands with bigger reductions on the higher payment bands as below:-
Payment band Scheme Year
2021 2022 2023 2024
Up to £30,000 5% 20% 35% 50%
£30,000 – £50,000 10% 25% 40% 55%
£50,000 – £150,000 20% 35% 50% 65%
More than £150,000 25% 40% 55% 70%
Simplifications from 2021 include removal of greening rules, including the three crop rule and removal of the usage rules for entitlements. Consultations are due in early 2021 on the following:-
A Lump Sum Exit Scheme – to take the remaining Basic Payment income as a lump sum in 2022 for those who wish to leave the industry.
Delinked payments – de-linking the remaining Basic Payment from the occupation of farmland or farming from 2024. Eligibility will be based on a reference period, yet to be decided. With delinking, cross compliance will be replaced with a new regulatory regime to be developed between 2021 – 2024.
The money from the reduced payments is to be invested back into farming and the countryside through different schemes such as the one outlined below.
New Entrant Support
A New Entrant Support Scheme is yet to be designed, with further information expected in November 2021 and anticipating the Scheme opening in 2022. The scheme will encourage landowners to provide long term opportunities for new entrants. Lister Haigh’s expert term would be happy to provide advice specific to your business on the impact of these changes. Call 01423 860322 for more details.