Get ready for new Basic Payment Scheme
Further details on the new Basic Payment Scheme which comes into force next month have emerged, which could have a significant effect on farming businesses in the area.
The BPS replaces the Single Payment Scheme and Defra has published further guidance particularly in relation to eligibility through the Active Farmer test and online registration via the new CAP Information Service.
Additional information on greening has been released, including what counts as a 'crop' for crop diversification, and there is also more detail on dual use, solar panels, soil management and organic land.
"It is important to note that landowners and farmers who did not transfer their excess entitlements before October 21, 2014, will be able to transfer these to an active farmer before May 15, 2015," said Charlotte Rogerson of Berrys at Shrewsbury.
"This includes farmers who do not have more than five entitlements who would not be eligible for the BPS. They will be able to transfer entitlements, or purchase them if they have eligible land to claim upon. The transfer of entitlements will be immediate."
To claim the BPS you must be an 'active farmer'. Most farmers will most likely meet the test. However, if they operate airports, railway services, waterworks, real estate services or permanent sport and recreational grounds (including some horse enterprises) on the holding then they may need to provide further supporting information to prove they are an active farmer.
Most of the criteria has been set for the Young Farmers top-up payment. To be eligible farmers must have taken control over their holding (more than 50 per cent responsibility) and not be more than 40 years of age in the year of their first BPS application.
"The business structure must be genuine and not manufactured for the purpose of the application as Defra intends for the payment to be made to the people it is intended for," Charlotte said.
More information has been released on CAPIS, the new online application system, but the service is still not available to use.
"However, DEFRA has confirmed that SPS applicants will be sent a registration pack between now and early 2015, outlining the steps involved to register online," Charlotte said.
"We would advise farmers to contact us as soon as they receive the pack so we are able to register them well in advance of their first BPS application in 2015."
On the greening requirements, which apply from January 1, 2015, it is important to consider these as early as possible to maximise the amount of BPS that can be claimed.
For more information contact Charlotte Rogerson, Berrys' Shrewsbury office, 01743 290642, email charlotte.rogerson@ berrybros.com or Vicky Price, Herefordshire office, 01544 598084/07789 986904 or email vicky.price@berrybros.com
