Insight to agricultural policy - what we currently know 

Insight to agricultural policy - what we currently know 

Posted on Wed, 07/10/2020 - 14:52
Agricultural Policy Plans for England update

Direct payment (BPS) transition

Payment deductions start 2021

Known deduction rate for 2021

No detail on how the payment deductions will be set between 2022 and 2027 (assume flat rate)

No payments from 2028 (final payment 2027)


Delinking of payments

Potentially delinked in 2022

No requirement for annual claim?

Cross compliance to be phased out or simplified?


Lump sum exit scheme

Exit scheme will be subject to exiting farming. Potentially only available for 2022 or 2023. Consultation later this year


Current agri-environment schemes

Countryside stewardship to continue until 2024

Further simplification anticipated. Opportunity to exit into ELMS without penalty

Continued roll over of HLS – but beware subject to EU regulations and penalties for non compliance could go back for whole of scheme agreement 10-14 years


Payment for public good - Environmental Land Management scheme

To be introduced in 2024

Pilot and development phase 2021 - 2024

Tier 1: Sustainable farming and forestry

Tier 2: locally targeted environmental outcomes

Tier 3: landscape scale land use change

Payment gap between 2021 and 2024 when BPS reductions but ELMS not introduced until 2024 (businesses lost 30-40% of direct payment by this point)

Pressure on government to bring forward Tier 1 proposal ‘sustainable farming incentive’ to 2022 to help plug income shortfall


Productivity & Resilience

During 7 year transition phase there will be grant schemes to assist with change:

From 2021: New productivity grant scheme

Small and large grant schemes, similar to current schemes


From 2022: Innovation/research programme

  1. Farmer led trials ‘accelerator fund’ £10k-100k (1-2 years)
  2. Themed collaboration £100k-1M (up to 4 years). Priority areas
  3. Industry led research £1M upwards


From 2024: Farm Business resilience fund

Pilot in 2020 providing advice and training


New entrant support

County farms and landowners


Animal & Plant Health

Animal welfare grants from 2021

Grants to enhance welfare above regulatory baseline

Animal health strategy starting 2022 to control or eradicate endemic diseases


Tree health and animal heal programme from 2024

To form part of ELMS. Grants for felling and restocking diseased trees

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