HHLE PROPERTY MATTERS SPRING 2021 - Flipbook - Page 6
On 1st January 2021, British agriculture entered the agricultural transition
period. It was announced by DEFRA that between 2021 and 2027, direct
payments will not only be reduced but will eventually stop, to allow funds
to be directed elsewhere to support UK farming through new schemes.
By 2028 DEFRA aims to achieve a renewed agricultural sector, where farms
can be profitable and economically sustainable in the absence of subsidised
payments, whilst contributing to UK Government environmental goals and
producing high quality produce.
DEFRA hopes that the proposed changes to British agriculture will be a
‘an evolution rather than a revolution,’ as we see the introduction of the
Environmental Land Management Scheme, the opening of the Animal Health
and Welfare Pathway, grants that help support farmers to maintain and
improve productivity, and the phasing out of the direct payments.
As we enter the new BPS scheme year, claimants should be aware that they
will be subject to changes from January 2021:
• All the greening requirements have been removed.
• There will be no requirement to use entitlements at least once every 2 years.
• Cross-border farms will have their payments split between the
respective devolved payment agencies, rather than having to be paid by
just one agency.
In relation to the BPS payments received by claimants throughout the
transition period, English farmers will be subject to the following reductions:
Up to £30,000
£30,001 - £50,000
£50,001 - £150,000
More than £150,000
For example, those who would have received a £40,000 payment, the first
£30,000 will be reduced by 5% and the following £10,000 will be subject to a
In 2022, it is expected that DEFRA will launch an Exit Support Scheme,
which will provide a financial incentive to allow farmers to leave the industry.
This will provide lump-sum payments in lieu of all future BPS payments to the
end of the Scheme. In tandem, there will be a New Entrant Support Scheme
to encourage new starters into the industry.
Considering all the changes, it is important that farmers and agricultural
businesses take the time to assess and make important business decisions.
Such decisions will not only help mitigate the impact of a reduction in direct
payments, but also ensure that their businesses remain viable, which will in turn
allow British agriculture to continue to thrive and remain the best in the world.
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