Delays to CS Mid Tier payment deepen cashflow crisis
Cash-strapped farmers in England who are still awaiting their Countryside Stewardship Mid Tier payments are being urged by Rural Payment Agency officials to contact the Farming Community Network charity for support, the NFU Council meeting was told.
Jamie Burrows, chairman of the NFU’s Combinable Crops Board, criticised the lack of transparency from Defra about when payments, due in the December to June window, might be made.
He said farmers are often directed by Rural Payments Agency (RPA) helpline officials to the Farming Community Network (FCN) for support when they inquire about their payments.
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“I don’t really feel that it’s OK for a government organisation to be pointing farmers to a charity,” said Mr Burrows, addressing the council meeting in Stoneleigh headquarters on Tuesday 28 January.
“When you read some of the FCN transcripts, it’s very sad.”
Mr Burrows voiced concern over the growing number of farmers in his sector reporting delays in receiving their payments.
He highlighted that while the RPA has made progress in processing payments, many farmers are still waiting for substantial sums, which are critical for managing their businesses.
“I think perhaps because we are probably the largest area, we’re seeing a lot of members come to us and saying they are not getting their Countryside Stewardship Mid Tier payments,” Mr Burrows said.
He raised particular concern over delays affecting the cereals sector. A straw poll of 12 NFU Combinable Crops Board members found they alone faced a Mid Tier payments shortfall of about £500,000, which he said was severely affecting farmers’ cashflows.
The NFU understands that, overall, payments are close to where they stood this time last year.
But Mr Burrows added: “That doesn’t help those farmers who haven’t got that money, who have thought ahead and are trying to derisk their business. They are missing some serious chunks.”
BPS withdrawal ‘the main issue’
David Exwood, NFU deputy president, acknowledged that the RPA is exceeding last year’s performance in terms of payment numbers, but noted that the delays are still creating substantial difficulties.
The situation is also made worse by the reduction in Basic Payment Scheme (BPS) funding, which has left farmers with even less financial cushion.
“The issue here is actually the withdrawal of the BPS,” Exwood explained. “That money is gone, and nobody knew it was going until the Autumn Budget. Now it has massively ramped up the pressure on the remaining payments.”
Mr Exwood added: “When payments are late, it really hurts. And this is how the cashflow crisis we are seeing in the industry – particularly in sectors dependent on area payments – is escalating.”
He said he had received assurances from Defra that 90-95% of eligible Mid Tier payments will be made by March.
Farmers have urged the NFU to continue pressing Defra for clearer guidance on when they can expect their outstanding payments, enabling them to plan their cashflows and have honest conversations with their bank managers.
A Defra spokesperson said: “We’re working hard to ensure customers receive their payments and are committed to ensuring that they get them as soon as possible.”