Agricultural Transition Plan 2021-2024
The government have published their agricultural transition plan outlining changes which will take place between now and 2024.
The plan sets out the following:
• How the basic payment is to be reduced between 2021 and 2024 and how money will be reallocated for environmental productivity and animal welfare schemes.
• How environmental land management schemes will develop with the sustainable farming incentive scheme becoming available in 2022.
• Changes there will be in regard to regulation and inspection with them being more practical and proportionate than is currently allowed under the EU cap regulations.
• Details with regard to animal health and welfare matters.
• Financial assistance which will be available to help productivity as a way of helping to tackle substantial productivity challenges faced by UK agriculture.
Although there is still a lot of detail missing from the information which has been published, the information which we have at present details the following:
• BPS payments will be reduced by at least 50% by the end of 2024.
• There is will be a full role out of the environmental land management schemes in late 2024.
• Countryside Stewardship Schemes will be open for applications until 2023.
• Hedgerow and Boundary Grant and Water Capital Grant funding is to be increased to £20,000 per application.
• There will be consultations in early 2021 in relation to the potential to take remaining BPS income in a lump sum in 2022 and the de-linking of remaining BPS payments from occupying farm land or farming from 2024, which therefore will make the current cross-compliance mechanism obsolete.
Basic payment reductions are set out to be as follows:
These reductions will be applied in a similar way to income tax payments whereby for example, in 2021 for an annual claim of £60,000 there will be a 5% reduction applied to the first £30,000, a 10% reduction applied to the next £20,000 and a 20% reduction applied to the final £10,000.
If you wish to discuss any of the matters which have been published by the Government, then please do get in touch with any of the team at PFK Land Agency.
The plan sets out the following:
• How the basic payment is to be reduced between 2021 and 2024 and how money will be reallocated for environmental productivity and animal welfare schemes.
• How environmental land management schemes will develop with the sustainable farming incentive scheme becoming available in 2022.
• Changes there will be in regard to regulation and inspection with them being more practical and proportionate than is currently allowed under the EU cap regulations.
• Details with regard to animal health and welfare matters.
• Financial assistance which will be available to help productivity as a way of helping to tackle substantial productivity challenges faced by UK agriculture.
Although there is still a lot of detail missing from the information which has been published, the information which we have at present details the following:
• BPS payments will be reduced by at least 50% by the end of 2024.
• There is will be a full role out of the environmental land management schemes in late 2024.
• Countryside Stewardship Schemes will be open for applications until 2023.
• Hedgerow and Boundary Grant and Water Capital Grant funding is to be increased to £20,000 per application.
• There will be consultations in early 2021 in relation to the potential to take remaining BPS income in a lump sum in 2022 and the de-linking of remaining BPS payments from occupying farm land or farming from 2024, which therefore will make the current cross-compliance mechanism obsolete.
Basic payment reductions are set out to be as follows:
| Payment Band | 2021 Scheme Year | 2022 Scheme Year | 2023 Scheme Year | 2024 Scheme Year |
| Payment up to £30,000 | 5% reduction | 20% reduction | 35% reduction | 50% reduction |
| Payment from £30,000 to £50,000 | 10% reduction | 25% reduction | 40% reduction | 55% reduction |
| Payment from £50,000 to £150,000 | 20% reduction | 35% reduction | 50% reduction | 65% reduction |
| Payment over £150,000 | 25% reduction | 40% reduction | 55% reduction | 70% reduction |
These reductions will be applied in a similar way to income tax payments whereby for example, in 2021 for an annual claim of £60,000 there will be a 5% reduction applied to the first £30,000, a 10% reduction applied to the next £20,000 and a 20% reduction applied to the final £10,000.
If you wish to discuss any of the matters which have been published by the Government, then please do get in touch with any of the team at PFK Land Agency.
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