Basic Payment Scheme Now Delinking
Brief Outline of the Basic Principles by Robert Parry:
The end has come to the Basic Payment Scheme that has been with us for the last however many years.
No more annual forms to complete in May each year; I am sure we will miss them and the panic as deadline day arrived! I must admit I enjoyed seeing all my clients at form filling time and putting the world to rights etc. The downside, however, less money being paid out to farmers!
The payment will now be delinked, apparently no forms required?
Future payments will be reduced over the next 4 years up to 2027. The payments will be based on the amounts each applicant claimed under BPS during the years 20202022 and an average taken, this being the reference amount. The amount the farmer will receive will be reduced each year. Ironically, the farmer will not need land or entitlements (these disappeared on 16th May 2023).
However, to receive delinked payments the farmer must have been eligible for BPS payments in England in the 2023 scheme year, have a reference amount (based on claims 2020-2022). There are various rules with regards to changes in business structure or inheritance, yet to be confirmed. All eligible claimants will in due course be notified by the RPA as to the reference amounts for payment and their eligibility to receive the delinked payments. It is important to check this through.
There may also be opportunities to transfer reference amounts to a third party. The farmer will not necessarily have had to claim BPS in 2023, but the party receiving the reference amount or part must have claimed and been eligible for BPS in 2023.
More details should be available soon. To make up for the loss of BPS perhaps it is time to consider other schemes, such as the Sustainable Farming Incentive options, details of which have been outlined by James McIntyre within this publication. If you want help contact Robert Parry or James McIntyre.
22 November 2023< Back to news