DEFRA finally published the rules of the Lump Sum Exit Scheme this month which have been awaited since October last year.
The application window is expected to be from April to September this year and all those who apply that meet the criteria, deliver the required withdrawal from land and surrender the entitlements will be accepted.
The payment is based on the average of the three years basic payments made for 2019, 2020 and 2021 with that average (capped at £42,500) multiplied by 2.35. The amount is intended to equate to approximately present value of possible basic payments remaining from 2022 to 2027.
The scheme requires that the applicant made a basic payment claim in 2018 and that they withdraw from farming of all but five hectares of eligible arable land by either selling, gifting or entering a minimum five year lease out if the land is owned, or surrendering a lease or other tenancy or planting land with trees under a woodland creation scheme. These actions must be taken and entitlements surrendered by 31st May 2024.
The basic payment can still be claimed in 2022 and 2023 but these amounts would be regarded as advanced payments on the overall lump sum. The earliest payments could be made in November 2022 once the applicant has provided evidence that the scheme rules are met.
If this option is of interest to you, then please contact our Agricultural Team on 01423 860322.