50% advance BPS starts in England to help struggling farms

Farmers in England will start receiving a 50% advance on their Basic Payment Scheme (BPS) cash imminently, after the Rural Payments Agency (RPA) announced that payments are now being issued.

With many farm businesses struggling with cashflow amid soaring inflation and exceptionally dry growing conditions, the RPA has pledged to issue the “majority” of payments by the end of July. The remainder will be paid in December.

See also: BPS advance is small compensation, says Stephen Carr

A small number of claims will require additional checks, so these payments could be delayed, but the farmers affected will be notified, says the RPA.

Lump Sum Exit Scheme applicants who have claimed BPS in 2022 will also receive an advance payment, the RPA confirmed.

The twice-yearly instalments are set to be permanent, bringing them in line with the regular payment system being introduced with the new Environment Land Management (ELM) scheme, said RPA chief executive Paul Caldwell.

“We know that cashflow during the summer season can be concerning for many farm businesses, particularly this year due to issues exacerbated by the war in Ukraine,” he said.

Defra has urged farmers to ensure that the RPA has their up-to-date bank account details.

Welsh payment

Meanwhile, it was announced today that farmers in Wales will get some of their BPS payment early, too – but not until October.

The Welsh government had been under pressure to match the forward payments in England.

But rural affairs minister Lesley Griffiths confirmed that a part-payment would be made in the autumn. She did not specify what proportion of the entitlement that would be.

The minister said the “terrible consequences” of the war in Ukraine and the impact of leaving the EU “continued to have long-term and far-reaching effects on the costs of production”.

But the Welsh Conservatives said Welsh farmers are at a disadvantage to their counterparts in England.

“The cost of living is biting this sector that relies on state subsidies sharply, so it is only right to explore ways in which to alleviate that pressure,” said their leader, Andrew RT Davies.

“One way of doing this is to bring forward part of the basic payment that would allow farmers to invest in their businesses this summer.”

The Welsh government has, however, maintained the BPS budget at £238m for this year, in contrast to England where farmers will experience further cuts of more than 20%.

Scottish farmers are set to receive a 95% advance BPS loan payment from 19 September, about a month sooner than normal.