The knowns and unknowns on the future of farm subsidies
The face of rural subsidies is changing and grants available to farmers will shift significantly over the coming years towards a more environmentally-focused system.
The Agriculture Act gained royal assent in November 2020 swiftly followed by DEFRA’s Agricultural Transition Plan. The new schemes will move away from the Basic Payment Scheme towards a system where farmers are rewarded for improving both the environment and animal health and welfare, and reducing carbon emissions.
The transition will begin this year with several key changes to the existing BPS and 2021 will also see the start of more detailed guidance in relation to the new Environmental Land Management Schemes.
Next year will see more schemes and opportunities released with the Sustainable Farming Incentive rewarding farmers for environmentally sustainable land management practices. 2024 may seem a long way off, but this is when we will see the biggest shift in subsidies with BPS payments being de-linked from land and the amount received will be reduced by approximately 50 per cent.
There are still plenty of questions to be answered with the devil, as always, in the detail – so watch this space!
Dan Bowden is a Partner with Barbers Rural Consultancy LLP
