We know that some farmers wish to leave the sector but find it hard to for many reasons.
In the Agricultural Transition Plan, we said that we want to offer farmers in England who claim under the Basic Payment Scheme (BPS) the option to leave the sector with an exit payment.
We plan to allow farmers to apply for this payment in 2022. The lump sum will be in place of any further Direct Payments to the recipient.
By supporting those farmers who wish to leave, the lump sum will make it easier for new entrants who want to join the industry and those farmers who wish to expand their business.
Delinked payments
We also intend to replace the Basic Payment Scheme (BPS) with delinked payments in 2024. Payments will be based on a reference period rather than meeting the BPS rules.
When payments are delinked, recipients won’t have to farm the land to receive these payments. These payments will be phased out by the end of 2027.
We want to delink Direct Payments because we think it’ll make life easier for farmers, as well as simplifying the administrative process for the Rural Payments Agency.
Simplifying payments will free up farmers to focus on running their business and delivering the public goods that can be rewarded under our new schemes, including the environmental land management schemes.
Tell us your views
We want to know what you think of our proposed lump sum exit scheme and our planned approach to delinked payments.
From today (19 May 2021) until 11 August 2021, you can let us know your thoughts on how these schemes could run. Share your thoughts by replying to our consultation.
If you have any questions comment below. For updates, please subscribe to the blog.
6 comments
Comment by Roger Hunt-Pain posted on
What would the definition be of "leaving the sector" be?
One would assume to cease farming, but if you own land would it need to be sold? If not one would assume it could be rented out?
If part of the business was a farm contracting business where a profit share was included, would this count as having to leave the sector too?
Far more detail on these proposals needs to be added to make an informed comment.
Comment by Alastair Walton posted on
Hello Roger,
Thanks for your comment. Our consultation document sets out the proposals in more detail, including rules relating to selling and renting out land: https://consult.defra.gov.uk/agricultural-policy/lump-sum-and-delinked-payments-england/
Hopefully you'll share your thoughts in the survey, but do feel free to email my colleagues in co-design if you'd like to get more involved in our work ffcpcodesign@defra.gov.uk
Alastair
Comment by David posted on
When can we expect further detail on this scheme and the outcome of the consultation?
Comment by Alastair Walton posted on
Hello David,
Thanks for your question. The consultation responses are currently being analysed and will be used to inform future policy about the lump sum exit scheme and delinked payments. A summary of the responses will be published on GOV.UK, and we'll publish a post as soon as that happens. We will provide information about the scheme rules for the lump sum exit scheme once we have considered the responses to our consultation.
Best wishes,
Alastair
Comment by David posted on
When are we likely to have an exit scheme?
Quitting the sector doesn’t happen overnight and notices need to be given.
Either don’t dream up these new schemes or implement them on time, this saying you are going to do something and then not doing it doesn’t help anyone.
Comment by Alastair Walton posted on
Hi David,
Earlier today (08/02/20222) we published an update about the Lump Sum Exit Scheme on GOV.UK:
https://www.gov.uk/government/publications/lump-sum-payments-for-farmers-who-leave-or-retire-from-farming-and-delinked-payments/lump-sum-exit-scheme-and-delinked-payments-how-the-payments-will-work
I blogged about it too: https://defrafarming.blog.gov.uk/2022/02/08/an-update-on-the-lump-sum-exit-scheme-and-delinked-payments/
We expect farmers will be able to apply for a lump sum from April 2022 to the end of September 2022. They will have until 31 May 2024 to compete the transfer of their agricultural land.
Best wishes,
Alastair