Farm subsidies after Brexit are changing.
The single biggest change to the farming financial support system for over 50 years is on the horizon.
The proposed removal of Basic Payment Scheme (BPS) in 2027, at the end of the Agricultural Transition Plan, is a stark reality.
Adapting to the new schemes poses an opportunity for some businesses to:
• Secure financial support when BPS is phased out,
• Subsidise eligible investments on farm,
• Enable nature friendly farming to assist with contractual production obligations, and
• Consider diversification and alternative streams of revenue
SUSTAINABLE FARMING INCENTIVE (SFI)
The Sustainable Farming Incentive (SFI) rewards farmers and land managers for delivering additional public goods that improve the environment.
Piloted in 2022 and rolled out early 2023, the scheme aims to help farmers manage land in a way that improves food production and is more environmentally sustainable.
However, payments are significantly less than the BPS and requires claimants to undertake more management of the land, i.e., be seen to provide value to for taxpayer’s money. This is where the “public money for public goods” phrase is derived.
Farmers and land managers can apply for the SFI online.
COUNTRYSIDE STEWARDSHIP SCHEME (CSS)
The Countryside Stewardship Scheme (CSS) enables capital expenditure to be included as part of the application. Farms within a catchment sensitive farming area, can receive subsidies for farm improvements such as:
- New concrete sleeper tracks
- Renewing concrete
- Water troughs
- Renewing gateways and areas around water troughs
- Planting trees and re planting hedges
- And much more…
In total there are over 160 options available to claimants, with no minimum acreage.
Some options can restrict what activities can take place on the land, whereas others can enhance less productive parts of farms.
BASIC PAYMENT SCHEME (BPS)
Until 2027, the Basic Payment Scheme will continue as we know it, however the payment rate is reducing until it finishes in 2027.
Most farmers can make this claim on an annual basis, with payment being made in July and December. It is still worth claiming the BPS if you are continuing to farm. Alternatively, there is a lump sum payment available for those looking to exit or retire from the industry.
Not all schemes are suitable for all farms. Before entering an agreement, it is important to understand what you need to do and what you can get out of it.
Speak to Selby Rural for tailored advice and to build out your subsidy strategy.
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