Defra data reveals sharp cuts in delinked payments

The Rural Payments Agency’s 2023-24 accounts have provided crucial details on the projected decline of delinked payments, which replaced Basic Payment Scheme payments starting in 2024. 

According to the Rural Payments Agency (RPA) July 2024 figures, delinked payments were predicted to sharply decrease over the next few years: £808m in 2024-25, £540m in 2025-26, £272m in 2026-27, and £54m in 2027-28.

However, following an announcement from Defra in October 2024, the projected decline in payments has been expedited.

See also: Defra ‘blew up apple cart’ with SFI closure, says NFU chief

Defra’s blog from March 2025 revealed that delinked payments over the two-year period (2024-25 and 2025-26) will total £1.05bn, significantly lower than the £1.35bn previously set out in the RPA accounts.

In the current 2024-25 financial year, the RPA has already allocated £808m for delinked payments, leaving only £200m available for 2025-26 if the £1.05bn figure is accurate – far below the £540m originally projected.

This reduction in payments is likely due to the structure of delinked payments, where many smaller farms, receiving less than £7,200 each, will reduce the overall total.

With this decrease in delinked payments, there will be a shift in funding for other farming and countryside programmes.

The remaining £2.2bn in 2025-26, out of the total £2.4bn for the year, will be allocated to alternative agricultural support schemes.

‘Shifting goalposts’

Julia Aglionby, a professor at Cumbria University, a practising land agent and agricultural valuer and executive director of the Foundation for Common Land, has been analysing the data.

She said: “While Defra and RPA’s financial reports provide insight into future spending, the full picture remains unclear due to discrepancies in the figures and challenges matching the accounts with official statements. 

“Also, this new government appears to be shifting the goalposts to maximise flexibility now farming is not a protected budget as it was under the Common Agricultural Policy.

“As a result, it is unclear how much will be left for ELM [Environmental Land Management] schemes in 2025-26 given Defra has committed a budget of £2.4bn.

“What we can see is that the delinked payments rate for 2027 was due to drop substantially.

“Farmers and stakeholders in the agricultural community will be watching these figures closely, as the reduced payments and the closure of SFI further intensify the cashflow crisis already affecting many across the industry.”