BPS cash arrives for farmers in England, but cut by 20%

Basic Payment Scheme (BPS) cash is arriving in the bank accounts of farmers in England, but businesses struggling with soaring costs must cope with reduced payments as the direct support is cut.

As of Tuesday 6 December, more than 95% of farmers had received their full payment within the first week of the window, which opened on 1 December.

See also: RPA votes to strike as under-pressure farmers wait for BPS cash

The Rural Payments Agency said it had paid out £872m, building on the advance payments farmers received in July and August.

More than 102,000 payments have been made, bringing the total paid to farmers to £1.528bn, across BPS, Countryside Stewardship and Environmental Stewardship.

Cuts to direct payments in England are being phased out over a seven-year agricultural transition period (2021-27).

Last December farmers saw between 5% and 25% cut from their annual BPS cheques, and this has continued this year with a further 20% cut in BPS payments up to £30,000, 25% between £30,000 and £50,000, 35% between £50,000 and £150,000 and 40% for payments over £150,000.

The NFU has previously called for the government to postpone its plans to slash basic payment rates for farmers and land managers in England in 2022 and 2023 amid a turbulent period for UK agriculture.

Defra announced in May that farmers and land managers would receive two separate payments this year, with the first made from the end of July and completed by August.

RPA chief executive Paul Caldwell said:  “This has been a year of unprecedented challenges for our farmers and rural businesses, which is why the RPA has been working hard to make payments as quickly as possible – both in July and in the current payment window.

 “We know how important these payments are to farmers and the wider economy, so will continue to work hard to process any remaining claims as quickly as possible.”

The RPA urged farmers to remain vigilant to fraud. The agency will never ask you to reveal your online password, PIN or bank account details or ask you to make a payment over the telephone.