Agricultural transition plan: are you ready for the phasing-out of direct payments?

Farm support is changing throughout Europe with the next round of the Common Agricultural Policy due in 2023 introducing a new way of working with nine objectives for social, environmental and economic sustainability.

Following Brexit the UK is able to design schemes which better suit the needs of rural business introducing fundamental change in the way that farmers and landowners are supported by the government. With a move away from direct payments to environmentally focussed support schemes, rural businesses will need a major shift.

Agricultural transition plan: overview document

In this document, we give an overview of the emerging policy and detail of funding that will replace the existing system, so that you can begin to consider how these may impact your business and what action you may need to take.

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Agricultural transition plan: executive summary 

• The final year of Basic Payment Scheme (BPS) payments will be 2027, with the scheme due to end in 2028 
• Farmers who wish to retire from the industry will have the option to receive a lump sum payment, subject to a cap of £100,000 
• The final deadline for the last round of Countryside Stewardship applications will be in 2023 
• The government has outlined the three core themes which combine to form the new Environmental Land Management Scheme, however, pilot scheme participants have observed that the application process is “paperwork heavy” 
• Under the Sustainable Farming Incentive, meeting the necessary soil standards for arable land should be a straightforward and low-cost process 
• The Farming Transformation Fund is a replacement of the Countryside Productivity Small Grant Scheme and is split into three rounds. Round 1 applications closed on 7 January 2022, we are uncertain as to whether this funding will be available again. Applications should open imminently for round 2 funding for larger equipment such as robots and slurry acidification to reduce ammonia emissions.
• The Water Management grant application period closed on 12 January 2022. We are uncertain as to whether this funding will be available again.
• Carter Jonas can complete a farm health check to see what shape your business is in to ride the short, medium and long-term future

For further information, download our brochure, or contact Amy Sweet on 07725 245566 or amy.sweet@carterjonas.co.uk, or James Bradley on 07815 704259 or james.bradley@carterjonas.co.uk.