Basic Payment Scheme (England & Wales)
Basic Payment Scheme - England
The government recently published ‘The Path to Sustainable Farming: An Agricultural Transition Plan 2021 to 2024’.
This publication clarifies the reductions to The Basic Payment Scheme from 2021 to 2024, indicates the intention to delink direct payments from land in 2024 and gives some more detail about the Environmental Land Management Scheme and more detail about other support measures.
Greening rules covering crop diversification, Ecological Focus Areas (EFA) and the greening permanent grassland rules will be removed from 2021. This will not affect the payment received by each farmer.
Reduction in Direct Payments
DEFRA plans to phase out Direct Payments in England from 2021 to 2027 and then to delink payments from 2024.
DIRECT PAYMENT REDUCTIONS 2021 TO 2024
PAYMENT BAND 2021 2022 2023 2024
< £30,000 5% 20% 35% 50%
£30,000 to £50,000 10% 25% 40% 55%
£50,000 to £150,000 20% 35% 50% 65%
> £150,000 25% 40% 55% 70%
No details of reductions from 2025 to 2027 have been published but it is expected that there will be further degression until they are completely phased out by 2028.
The government plans to delink direct payments from land in 2024. After this the area of land available to claimants should not affect the receipt of direct payments. When payments are delinked, it will be unnecessary to farm the land to receive the payments.
Eligibility for delinked payments will be based on a reference period. For example, it may be necessary to have claimed, and been eligible under BPS, in a particular scheme year or years.
Lump sum exit scheme
The government plans to offer an exit support scheme from 2022 for farmers who want to retire and wish to take a lump sum payment in lieu of annual payments for the remainder of the scheme.
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