The Rural Payments Agency has announced the payment rates for the Basic Payment Scheme (BPS) for 2021, which are just a few pence higher than the 2020 rates. The 2021 payment rates are:

Non-SDA             £233.30 per ha

SDA                        £231.60 per ha

Moorland            £64.00 per ha

However, as 2021 is the first year in which the phased reductions in BPS take effect farmers will receive less than the published rates.

David Morley, Head of Conservation & Environment for H&H Land & Estates gives further detail: “For each farming business, the reduction will depend on the size of the initial payment. Reductions are “progressive” – in other words, they work like income tax, in payment bands, so the bigger payments are subject to bigger reductions.”

The levels of reduction are as follows:

• For BPS payments up to £30,000, the reduction is 5%
• For payments up to £50,000, the reduction is 5% on the first £30,000 and 10% on the rest
• For payments up to £150k, the reduction is 5% on the first £30k, 10% on the next £20k and 20% on the remainder
• For payments above £150k, the reduction is 5% on the first £30k, 10% on the next £20k, 20% on the next £100k and 25% on the remainder

The RPA website where farmers can calculate what their BPS payments will be for 2021 to 2024, based on their current payment. https://calculate-direct-payment-reductions.defra.gov.uk/

“For every farming business, BPS payments will be reduced by at least 50% over the next 5 years, so farmers need to plan how they are going to adapt their businesses to make up for this shortfall. As always, independent professional advice will be key in helping farmers make the right decisions in the coming years, ” concludes David.