Farm subsidies after Brexit are changing.
There is a declining availability of farm subsudies. The single biggest change to the farming financial support system for over 50 years is now in place.
This includes the removal of Basic Payment Scheme (BPS) in 2027.
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
The availability of these schemes are at many times limited, we will try to always ensure that we announce any new schemes or new opportunities as and when they arise.
SUSTAINABLE FARMING INCENTIVE (SFI)
At the moment, due to DEFRA announcements earlier this year, unless you have an open application, there is no opportunity for a new SFI application for 2025. We hope that there will be an update on a new 2026 scheme soon.
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)
The 2023 scheme year was the last year of BPS.
You will not need:
- any land or entitlements to receive delinked payments
- to apply to receive delinked payments, in 2024 or later years
RPA will pay delinked payments each year from 2024 to 2027. The amount you receive will decrease each year as we apply progressive reductions
You can use the delinked payments calculator to see how progressive reductions were applied to your payment for the 2024 scheme year, and to see an estimate of the planned reductions for the 2025 scheme year. The progressive reductions for 2026 to 2027 have not been announced yet.
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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