Outlook 2024: Farm policy and support in England and regions

Further farm support details are emerging which will help farm business in the UK to plan for change. There is still much to be made clear, however, on budgets and funding available the help farmers make the transition.

See also: What you can do to reduce farm business risk in time of flux

England

Significant interest has been reported in England’s Sustainable Farming Incentive by Defra as farmers prepare for life after the Basic Payment Scheme, says Andersons consultant Caroline Ingamells.

In 2024, the Basic Payment will fall to 50% of 2020 levels, less for those who receive larger payments, and will be phased out by 2028.

The Sustainable Farming Incentive (SFI), the first element of Defra’s Environmental Land Management (ELM) programme, has effectively been relaunched in 2023, offering 23 options.

Defra reports that the uptake of SFI has been good. The key to a successful SFI scheme is to structure it so it can be integrated as seamlessly as possible with the existing farming operation. Most farmers should be able to enter SFI alongside commercial farming.

Further SFI announcements are expected in early 2024, which could include more options for livestock and arable land, including min-till.

Defra had also promised more details of ELM’s second element, Countryside Stewardship, for 2024. This will include a Countryside Stewardship Plus, rewarding farmers for working with neighbouring farms and landowners.

Countryside Stewardship also provides a substantial capital grant offering, to be expanded in 2024.

The final element of ELM, Landscape Recovery, funds longer-term bespoke schemes over large areas (500-5,000ha) with several land managers working together.

Those farming in national parks, areas of outstanding natural beauty and the broads can access useful funding through the Farming in Protected Landscapes scheme, which has been extended to March 2025.

The other main strand of support in England is for productivity. Several existing capital grant schemes aimed at improving the performance of English farming will remain available.

Funding via the UK Shared Prosperity Fund and the Rural England Prosperity Fund to support farm diversification began last April. Grants run by local authorities are available now and funding runs through to March 2025.

There is a vast amount of scheme information under ELM and other policy areas. Farmers should keep a close eye or seek advice on what is available to help bolster business resilience and productivity.

Scotland

The Scottish government has released more detail on reform beyond 2024 when BPS ends, but there is no indication yet of the size of the budget or payment rates.

Without that vital information it is very difficult for farming businesses to plan, says Andersons director Ben Kellagher.

However, under SFI in England, generating a return equivalent to historical BPS levels appears difficult without radical change to farming practices. Scottish farming businesses should prepare for lower subsidy support.

Although the current BPS scheme is due to end in 2024, it is likely that an interim farm support scheme for 2025 will be introduced, very similar to 2024 support but with conditionality added.

This will include greening, cross-compliance and whole farm plans such as soil testing, carbon audits and biodiversity audits.

A four-tier structure to deliver agricultural reform is due to be phased in in 2026, when Tiers 1 and 2 will be introduced. Tiers 3 and 4 will begin in 2027.

Tiers 1 and 2 will form the equivalent of the current BPS subsidy receipt.

Tier 1 (Base Support) is linked to farmers meeting Essential Standards in farming activities, while Tier 2 (Enhanced Support) aims to incentivise more sustainable and regenerative practices.

Tier 3 proposes targeted measures for nature restoration and innovation, while Tier 4 offers complementary support to the other tiers.

The direction of travel is clear: reduce greenhouse gas emissions, adapt to climate change and protect nature, to help Scotland deliver its climate and biodiversity targets. 

Wales

Most administrative requirements for The Water Resources (Control of Agricultural Pollution) (Wales) 2021 Regulations are now being enforced.

Many upland farmers will only need to keep an additional record as relatively few changes to physical farming practices will be required, says Andersons consultant Kerry Jerman.

However, some dairy and suckler farms are unable to justify the investment needed to meet new slurry storage requirements, due to take effect from July 2024, so we will see a decrease in the number of smaller units.

The final consultation on the Sustainable Farming Scheme (SFS) is still not released, despite the rapid approach of the 2025 rollout.

While this delay feels like putting off the inevitable, farmers are becoming more proactive in assessing their survival after BPS.

Most businesses will see a significant drop in income, but they are taking the opportunity to improve their resilience while BPS remains.

The Farming Connect programme has been extended to provide a transition period for farm businesses to prepare for SFS.

It offers access to professional advice and training courses to ensure cross-compliance and to improve professional development in farming.