Agricultural Transition Plan – Basic Payment Scheme

Following Defra’s published Agricultural Transition Plan 2021-2024 for the new agricultural policy in England published on the 30th November 2020, we now have more information on how the BPS will be phased out.  

The final payment year is to be 2027, with reductions starting in 2021.  The document sets out the cuts for the next four scheme years (see below).

Payment banding% BPS Reduction for the band
 2021202220232024
Up to £30,0005203550
£30,000-£50,00010254055
£50,000-£150,00020355065
Over £150,00025405570

DEFRA have also given some calculated examples as set out in the table below.  This shows the maximum left of anyone’s payment by 2024 is 50%. 

Payment values before cuts2021 payment % cut2022 payment% cut2023 payment% cut2024 payment% cut
£5,000£4,7505 £4,00020£3,25035£2,50050
£10,000£9,5005£8,00020£6,50035£5,00050
£20,000£19,0005£16,00020£13,00035£10,00050
£40,000£37,5006£31,50021£25,00036£19,50051
£80,000£70,50012£58,50027£46,50042£34,50057
£160,000£134,00016£110,00031£86,00045£62,00061

Some additional points of note are:

  • Cross compliance to continue until 2024, when it will be replaced with something else.
  • Changes to the inspections regime including ‘greater communication rather than immediate penalties’.
  • Cross border holdings no longer to be treated as one holding (there are already different rules for 2021 for EFAs in England – none, and Scotland – continuing as before).
  • Payments to be delinked from land in 2024.
  • Possible exit scheme with lump sum payments equivalent to remaining BPS payments to farmers who leave the sector.
  • Money taken away from BPS to be reinvested in other schemes for farmers, including:
    • The Sustainable Farming Incentive from 2022. Detail is expected in the first half of 2021 but it is expected to be based around environmentally sustainable farming e.g. soil management, arable and grassland options, farm woodland and management of boundaries (hedges and walls) with an increasing number of options available from 2022 to 2024.  This is seen as an interim scheme until ELMs is fully launched.
    • Farmers in AONBs and National Parks will be able to receive additional transition grants for the added hurdle of being located in a Protected Landscape.  Again, more information is to be available in 2021.

For more information on the 30th November 2020 Defra published Agricultural Transition Plan 2021-2024 you can find the full ‘Farming is Changing’ document HERE, or please contact one of our offices below to speak to one of our Rural Agents to help navigate you through the changing rules and regulations:

Keswick: 017687 72988

Carlisle: 01228 548385

Berwick: 01289 304432

Galashiels:01896 751300

Kendal: 01539 769790