Farmers across the UK can expect to receive their Basic Payment Scheme (BPS) advance payments in the coming weeks, as around 50 per cent of the overall payment was issued on 19 July, with the balance expected from December.

As a result of pressure on costs and global instability, the Rural Payments Agency (RPA) will pay eligible farmers in two instalments each year for the remainder of the agricultural transition period to help them with their cashflow.

With agricultural commodities closely linked to global gas prices, farmers are facing rising costs for inputs, including manufactured fertiliser, feed, fuel and energy. Due to heightened worldwide demand, by February this year, the price of gas had quadrupled from the previous year, and with the instability caused by the war in Ukraine, that price has risen even further.

As a spokesman for the RPA commented, cashflow can be tricky in the Summer months and this year the issue has been exacerbated by the war. However, this is not a one-off process; the twice-yearly instalments are a permanent change to bring BPS in line with what will be a more regular payment system under the new environment land management schemes.

In preparation for their payments, farmers should ensure that the RPA has their up-to-date bank account details. Once a payment has been made, remittance advice will be sent in the post confirming the amount paid. When the balance payment is made, from December, a claim statement will be sent to explain how the 2022 payments have been worked out.

For help and advice on related matters, contact Smailes Goldie today.

Posted in Agriculture, Blog.