Famers to be given hand with cashflow

By Chris Wright, Partner and ARA specialist

Farmers will receive subsidy payments in two instalments each year for the remainder of the agricultural transition period, to help them with their cashflow, the Government confirms.

Most farmers will have submitted their applications to the Basic Payment Scheme (BPS) 2022 by the deadline of Monday 16 May 2022 and, under these plans, those with eligible applications will receive the first payment of 50 per cent from the end of July and the second from December.

This is being done to support farmers with cost pressures caused by demand and instability seen across the globe, which causes the price of inputs to rise, including manufactured fertiliser, feed, fuel and energy.

Output prices are high too, particularly for wheat, and analysis by the Agriculture and Horticulture Development Board (AHDB) shows that farmers should continue to buy their inputs as usual.

The Environment Secretary, George Eustice said that the Government’s latest steps will give farmers some additional cashflow earlier in the year to allow them to do this.

A spokesman for the Rural Payments Agency (RPA) welcomed the move, saying that bringing forward half of this year’s BPS payment from the end of July will be a welcome boost to cash flow for many farm businesses during uncertain times.

He added that the fact that the Government is making this a permanent change to the way BPS is paid under the new environment land management schemes will support farmers in the longer term too.

This move builds on the existing package of measures to support farmers, which include a delay to changes to the use of urea fertiliser by at least a year; revised and improved statutory guidance on the Farming Rules for Water; slurry investment grants to help meet those rules and further details of the Sustainable Farming Incentive, which will reward farmers for manufacturing more organic-based fertiliser products.

If you need assistance with managing your BPS payments during these challenging times, please get in touch.