Get ahead: changes to farm payments and capital grants in 2024 explained by Wilkin Chapman

Big developments in farm payments and grants – be prepared. Picture - Adobe

For those involved in agricultural and rural land in England, there are plenty of developments expected in 2024

Here, Orren Watts, Solicitor in Real Estate at Wilkin Chapman explains how to get ahead of the upcoming changes to farm payments and capital grants.

Delinked payments

The Basic Payment Scheme (BPS) ended on December 31, 2023 and has been replaced with delinked payments going forward. With the introduction of delinked payments from January 1, 2024, payments will be progressively reduced.

Orren Watts, Solicitor in Real Estate at Wilkin Chapman. Picture – supplied

The draft Agriculture (Delinked Payments and Consequential Provisions) (England) Regulations 2023 was enacted on the 1st January 2024 following feedback from the Secondary Legislation Scrutiny Committee. Further guidance on inheritance issues surrounding delinked payments is expected in particular in 2024.

Cross-compliance

Cross-compliance requirements ended on January 1, 2024 by virtue of The Agriculture (Removal of Cross-Compliance and Miscellaneous Revocations and Amendments) (England) Regulations 2023.

The regulations remove cross-compliance requirements for recipients of the farm payments to which they still apply and give more discretion to the Rural Payments Agency when administering financial assistance schemes.

The majority of cross-compliance standards are underpinned by UK legislation and will still apply to farmers in 2024. The government has indicated that it will rely on the regulatory baseline for farming within domestic legislation to safeguard the environment.

Environmental Land Management Scheme

The full roll-out of the Environmental Land Management Scheme is expected in 2024. It will include additional actions to be made available through Countryside Stewardship and Sustainable Farming Incentives, and a full roll-out of Landscape Recovery.

The Environmental Land Management Scheme will also be widened to enable participation from those who currently do not qualify.

Lump Sum Exit Scheme payments

The Lump Sum Exit Scheme closed on September 30, 2022, phasing out direct payments, delinking, and lump sum payments.

Any farmer who has taken a lump sum payment in return for relinquishing entitlements under the BPS must provide evidence of the transfer of land to the Rural Payments Agency before May 31, 2024. This deadline may be extended in some circumstances, such as if the land is part of a probate case.

If you’re concerned about the impact of these changes, contact Orren Watts on 01482 425815, email [email protected] or visit wilkinchapman.co.uk.