Agricultural Transition Plan 2021-2024

The government have published their agricultural transition plan outlining changes which will take place between now and 2024.

The plan sets out the following:

• How the basic payment is to be reduced between 2021 and 2024 and how money will be reallocated for environmental productivity and animal welfare schemes.
• How environmental land management schemes will develop with the sustainable farming incentive scheme becoming available in 2022.
• Changes there will be in regard to regulation and inspection with them being more practical and proportionate than is currently allowed under the EU cap regulations.
• Details with regard to animal health and welfare matters.
• Financial assistance which will be available to help productivity as a way of helping to tackle substantial productivity challenges faced by UK agriculture.

Although there is still a lot of detail missing from the information which has been published, the information which we have at present details the following:

• BPS payments will be reduced by at least 50% by the end of 2024.
• There is will be a full role out of the environmental land management schemes in late 2024.
• Countryside Stewardship Schemes will be open for applications until 2023.
• Hedgerow and Boundary Grant and Water Capital Grant funding is to be increased to £20,000 per application.
• There will be consultations in early 2021 in relation to the potential to take remaining BPS income in a lump sum in 2022 and the de-linking of remaining BPS payments from occupying farm land or farming from 2024, which therefore will make the current cross-compliance mechanism obsolete.

Basic payment reductions are set out to be as follows:

Payment Band	2021 Scheme Year	2022 Scheme Year	2023 Scheme Year	2024 Scheme Year
Payment up to £30,000	5% reduction	20% reduction	35% reduction	50% reduction
Payment from £30,000 to £50,000	10% reduction	25% reduction	40% reduction	55% reduction
Payment from £50,000 to £150,000	20% reduction	35% reduction	50% reduction	65% reduction
Payment over £150,000	25% reduction	40% reduction	55% reduction	70% reduction

 
These reductions will be applied in a similar way to income tax payments whereby for example, in 2021 for an annual claim of £60,000 there will be a 5% reduction applied to the first £30,000, a 10% reduction applied to the next £20,000 and a 20% reduction applied to the final £10,000.

If you wish to discuss any of the matters which have been published by the Government, then please do get in touch with any of the team at PFK Land Agency.