The Rural Payments Agency (RPA) has confirmed that a substantial number of UK farmers have received their final Basic Payment Scheme (BPS) payments, injecting £525 million into the rural economy. This significant financial boost is part of the government’s ongoing support for the agricultural sector.
Key Highlights
- The RPA announced that 97% of farmers have received their final BPS payments within the first few days of the payment window.
- Over 91,000 applications and claims have been completed across BPS, Countryside Stewardship (CS), and Environmental Stewardship (ES) schemes.
- An additional £70 million under the Environmental Stewardship scheme is expected to be issued shortly.
Support for Farmers and Rural Economy
The payments are a crucial part of the government’s effort to support farmers in running profitable and productive businesses, particularly amid various challenges faced in the agricultural sector. The funds are also intended to encourage environmentally sustainable practices in farming.
Early Release of Sustainable Farming Incentive Payments
In response to feedback for improved cash flow support, the RPA has released Sustainable Farming Incentive (SFI) payments early. Farmers with a live SFI 2023 agreement before year-end will receive an accelerated payment worth 25% of their annual agreement value in the first month.
RPA Chief Executive’s Statement
Paul Caldwell, RPA Chief Executive, emphasized the importance of these payments in supporting farmers and rural businesses, especially given the challenges of the current year. He also noted the forthcoming shift to delinked payments, which will provide financial support while encouraging participation in environmental land management schemes.
Transition to Delinked Payments
Starting in 2024, delinked payments will replace the BPS in England and run until the end of 2027. These payments will be based on the average BPS payment made to a business from 2020 to 2022. Farmers who claimed and were eligible for BPS in 2023 will automatically receive these delinked payments.
Final Payments and Future Outlook
The RPA aims to complete all CS/ES and final BPS 2023 payments by 30 June 2024. Farmers are advised to ensure their bank details are updated with the RPA to facilitate smooth payment processing.
