One of the lesser known consequences of the Autumn budget revealed that Basic and Delinked payments to farmers due in 2025 will be drastically reduced.
The first payment band of up to £30,000 is to be reduced by 76% and all higher payment bands are to be reduced to zero. The maximum payment to farmers therefore will be £7,200 resulting in significant loss of farm income at a time when margins are already tough.
There is no indication of what, if anything, might be paid in 2026 or 2027 originally intended to be the last year of Basic and Delinked farm payments.
Farmers looking to replace the shortfall in Basic Payment Scheme payments should now start reviewing other funding options that are currently available to them including the Sustainable Farming Incentive (SFI) and Capital Grants Scheme.
A well-planned SFI application could have the potential to offset losses from lost Basic Payment Scheme income without any major changes to the applicants current farming set up.
Payments are made quarterly to aid farm income streams and a Sustainable Farming Incentive agreement also benefits from a management payment plan currently worth up to a maximum of £4000 to cover agents’ fees and administrative costs.
These payments should be considered by all farming clients as a way to mitigate the reduction and loss of Basic Payment Scheme payments.
If you would like to discuss further please contact Frank Smith & Co Solicitors on: 01242 801748 or www.franksmithandco.com
13/11/2024