Delinking the Basic Payment Scheme - what does this mean?

Published: 27/03/2023 By Jane Ruth Ruell

2023 will be the final year BPS is a feature of the spring farming calendar in England. Graduate Surveyor Jane Ruth Ruell from our Tiverton office explains the process.

In 2003 EU Farm ministers introduced a single payment scheme for direct subsidy payments to landowners under the Common Agricultural Policy (CAP).  This became BPS in 2015 and has been the biggest of the rural grants and payments that provide help to the farming industry.

BPS is now being phased out. Final claims will be submitted in 2023 and final payments under the legacy of this scheme made in 2027, with payments made biannually.

The amount received by claimants will be based on average BPS claims for 2020, 2021 and 2022 scheme years. Beyond 2023 BPS, payments received will be delinked from land farmed or entitlements owned, being based purely on that historical average. There has been and will continue to be, a progressive reduction in the amount received each year.

Some farmers chose to capitalise on their delinked BPS payments to aid the transition out of farming in the form of the Lump-Sum Exit Scheme.  Applications for this scheme closed in September 2022 and the deadline for submitting the required evidence is 31st May 2024.

The money saved by the reduction in Direct Payments will be invested back into new schemes, such as the Sustainable Farming Incentive and the Farming Investment Fund as the priorities move towards public money for public goods.

Symonds & Sampson’s Rural Grants experts can assist with identifying and applying for funding. Please contact Jane Ruth Ruell in our Tiverton office on 01884 218911, or a member of our Rural Grants experts in your nearest office.

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