The decision by Defra to offer a 50% advance on farmers’ BPS payments this year will provide some much-needed help with business cashflow in the face of rapidly rising costs, the NFU has said.

NFU Vice President David Exwood said: “With farmers facing extreme inflationary pressure and businesses being squeezed more than ever, any advance payment of BPS claims for this year is positive and will help cash flow. I’m pleased Defra and the RPA have recognised the seriousness of the situation and put in place a practical solution.

“However, it’s crucial that this change does not adversely affect the delivery and promptness of payments. As Defra plan to move forward with two payment windows on a permanent basis, we will be looking for reassurances from the RPA that it will continue its strong delivery performance and ensure farmers receive their payments as early as possible on both occasions. We’d ask the RPA to continue working with the NFU on the rollout and delivery of the scheme.

“With the BPS claims deadline looming, I would urge all farmers to get their claims in as soon as possible, making sure all details are correct and up-to-date." 

Secretary of State, George Eustice MP, announced that the first payment will be made at the end of July, with the intention of making this change a permanent feature, with bi-annual instalments until BPS is phased out in 2027. The second payment will be in December. 

Responding to the news,CLA President, Mark Tufnell, said: “The CLA welcomes the move by the government to advance the Basic Payment Scheme instalment to July. As this is an issue that the CLA has been calling for action on for the benefit of our members, it is encouraging to see that Defra has recognised the current cashflow and inflationary constrictions the agricultural sector is facing, and consequently has implemented measures to help relieve these pressures at such a difficult time.”