Farmers’ lump-sum exit scheme application figures released

A total of 2,706 farmers made an initial application for the Lump Sum Exit Scheme by the deadline of 30 September 2022, Defra has revealed.

The scheme offers Basic Payment Scheme (BPS) claimants in England who wish to leave the industry a lump sum in place of the direct payments they could otherwise receive if they carry on farming until the end of 2027.

A Defra spokesperson said: “The decision to retire or leave farming can be extremely difficult and the one-off Lump Sum Exit Scheme (LSES) will enable a small number of farmers to leave the industry in a planned way.

See also: Defra confirms landlords cannot apply for lump sum exit cash

“The scheme will free up land for new and existing farmers, alongside our upcoming New Entrants Scheme which will attract new talent into agriculture for the future.”

Defra has pointed out that the numbers of famers who applied for the scheme equates to just 3% of BPS claimants and more than 500 of the initial applications have already been rejected or withdrawn.

There is also an expectation that more farmers will drop out as the process continues.

Farmers have until the end of May 2024 to transfer their agricultural land and will only be paid their lump sum once they have met the scheme rules and submitted a claims form.

Given exiting from farming is a complex process, it is anticipated that there will be farmers who originally expressed an interest in the LSES, but who will decide not to go ahead because of the practical challenges associated with the sale of land or surrender of tenancy by the deadline.

There will also be farmers who change their mind about taking advantage of the scheme, possibly because of a change in family circumstances.

Meanwhile, Defra will shortly be launching five pilots aimed at supporting new entrants.

It wants to test different approaches to help build entrepreneurial capacity and support new entrants pitching for access to land and finance.