A consultation on changes to the basic payment scheme and specifically exit payments for farmers in England has been launched today (19 May) by Defra.
The 12-week consultation, which runs until 11 August, outlines two exit payment schemes that it hopes will allow farmers to retire with dignity and free up land for new entrants to farm.
Views are sought on who should be eligible for lump sum payments and how they should be calculated as well as how delinked payments should be worked out.
The payments aim to support farmers through the agricultural transition period from now until 2027 to deliver a better, fairer farming system in England.
· The lump sum exit scheme aims to offer a lump sum payment to help farmers to retire in a planned and managed way.
· Delinked payments involve separating direct payments from the amount of land farmed, from 2024. This will simplify the process for farmers, allow them to focus on running their business and encourage them to take up the government’s new environmental land management schemes, which will reward sustainable food production and environmental improvements.
Environment Secretary George Eustice said: “We need to address the twin challenges of helping new entrants fulfil their dream and gain access to land, while also helping an older generation retire with dignity.
“Our exit scheme will offer farmers who want to exit the industry all of the area payments they would likely have received until the end of the transition period in a single lump sum. It gives them a real incentive to confront what can often be a difficult decision and will help them clear bills and settle debts.
“By renting out their farm or surrendering their tenancy, those exiting the industry will create important opportunities for the next generation of farmers and later this year we will be saying more about our plans to work with County Farm estates and other land owners to ensure we nurture the right conditions for new enterprises to flourish,” he said.
The proposals within the consultation seek to offer a fairer system for farmers, encouraging generational change by providing more flexibility for new entrants to start up their farm businesses and supporting those who are ready to leave the sector to do so on their own terms.
Commenting on the consultation RABDF Chairman Peter Alvis added: “It is important for those farmers concerned to get involved in the consultation by putting forward their views either directly or to organisations such as RABDF.
“The government is trying to co-design a system with the industry that will meet the needs of those retiring and also encourage new entrants into the industry- something that is desperately needed. We should hopefully have details about a New Entrant Scheme being designed by the government shortly,” he added.
A full report on the responses to the consultation will be published later in the year.
To read the consultation go to Direct Payments to farmers: Lump sum exit scheme and delinked payments in England - Defra - Citizen Space