Direct Payments in England will be paid in two instalments each year for the remainder of the agricultural transition period, the government has announced today (Friday, May 6).
This decision is a measure by government to help farmers with cashflow at a time where cost pressures are widely seen on farms.
The first payment, of 50%, will be issued from the end of July and the second, in December.
Reminder: The deadline for submitting Basic Payment Scheme 2022 applications is Monday, May 16.
Commenting, Secretary of State for Environment, Food and Rural Affairs George Eustice said:
“While increasing farm gate prices may mean that farm profitability remains stable, we recognise the short term pressures on cashflow.
“We have decided to bring forward half of this year’s BPS payment as an advance injection of cash to farm businesses from the end of this July. It will give farmers some additional cashflow earlier in order to provide some confidence.
“We will also make this a permanent change to the way we pay BPS in future with twice yearly instalments going forward.
“In the days of the EU this would never have been possible due to the way audits worked and the need to enforce the three crop rule during the summer,” he added.
Rural Payments Agency chief executive Paul Caldwell added that he believes this will be a “welcome boost to cashflow for many farm businesses during certain times”.
“This is not just an opportunity to support farmers here and now through a cash injection,” he said.
“It’s a permanent change to bring Direct Payments in line with what will be a more regular payment system under the new environment land management schemes.”
