The changes to the current Basic Payment Scheme (BPS) will be one of the biggest challenges facing farmers and landowners when the Agriculture Bill is introduced.
For the 2020 scheme year, there will be no changes. However, from 2021 a new transition period will begin which will see the phasing out of the BPS payment by 2027.
The Government set out how the reduction payments would be made across all claimants with different rates for different payment bands. The table below illustrates the proposed cuts to the BPS payments over the transition period.
It is inevitable that there will be much more detail to follow, however, it is clear that the Government has shared their timetable for the progressive loss of the BPS. This will have an impact on farms of all sizes.
The transition period will give farmers and landowners time to review and make changes to their businesses in order for them to lay solid and effective foundations for the future profitability of their businesses.
The BPS window is now open and closes on the 15th May 2020. Please contact a member of our team to discuss your claim.