The Government has agreed to a scheme that opens in April whereby English farmers who wish to retire from the industry but have been unable to afford to for financial reasons could be offered exit payments of up to £100,000.
The Lump Sum Exit Scheme was launched by Defra – the Department for the Environment, Food and Rural Affairs. It followed an industry consultation that confirmed most respondents supported the initiative.
According to Defra, the scheme will enable farmers to receive some of their future Basic Payment Scheme (BPS) payments upfront in return for surrendering their BPS entitlements and either renting out or selling most of their land or giving up their tenancies.
The average farmer will receive the average BPS they received from 2019 to 2021. This is likely to be that figure multiplied by 2.35, and the scheme would be capped at £100,000.
In return for their payment, farmers will surrender their entitlements and either rent or sell their land or surrender their tenancy to create opportunities for new entrants and farmers wishing to expand their businesses.
As Environment Secretary George Eustice commented, the Government needed 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. The scheme will help to do both.
The Lump Sum Exit Scheme is due to open in April and, the application period will run until the end of September.
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