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What You May Have Missed Regarding the Agricultural Transition Plan

By Clive Hancock FBIAC


In effect the Basic Payment Scheme will end in 2023 and from 2024 claimants will not need entitlements, or even land, to receive the delinked payments. The recent announcements as to how these delinked payments will be calculated means that changes to farm businesses this year and next could affect future payments. Payment calculation will be made with reference to the average payment for claims made in 2020, 2021 and 2022 and then made subject to annual progressive reductions with the last payment being made in 2027. 

The points to note are that as delinked payments are calculated using the average claim over the three reference years then the method of calculation indicates that if you transfer out or don’t use entitlements for 2022 you will only receive two-thirds of the potential payment and if you buy entitlements for 2022 you will only receive one third of one year’s payment. The other important point is that you also need to make a claim in 2023 to receive the delinked payments for 2024 to 2027. For those buying or selling entitlements or taking on or giving up land these points are an important consideration. Do call us to talk this through if you are making changes this year. 

Lump-Sum Exit Scheme

This scheme enables retiring farmers to receive a proportion of the BPS they would have claimed in future years as a lump-sum payment. The RPA will provide forecasts of the payment on request by email. There are quite a number of hurdles to jump and the criteria will only fit a small number of retirees but it offers a good opportunity for those ceasing farming in 2022. Do call us if you think this may be of interest to you.