The Government has announced it is to pay farmers in two instalments each year for the remainder of the agricultural transition period to help them with their cashflow.
Farmers should note that the deadline for submitting Basic Payment Scheme (BPS) 2022 applications is Monday 16 May 2022 – under these plans, those with eligible applications will receive the first payment of 50 per cent from the end of July and the second from December.
This initiative will support farmers with cost pressures caused by demand and instability seen across the globe. Currently, farmers face rising costs for inputs, including manufactured fertiliser, feed, fuel and energy.
Output prices are high too, particularly for wheat, and analysis by the Agriculture and Horticulture Development Board (AHDB) shows clearly that farmers should continue to buy their inputs as usual.
As Environment Secretary George Eustice commented, the Government’s steps will give farmers some additional cashflow earlier in the year to allow them to do this.
A spokesman for the Rural Payments Agency (RPA) welcomed the move, saying that bringing forward half of this year’s BPS payment from the end of July will be a welcome boost to cash flow for many farm businesses during uncertain times.
He added that the fact that the Government is making this a permanent change to the way BPS is paid under the new environmental land management schemes will support farmers in the longer term too.
This move builds on a package of measures to support farmers announced in March. These also include:
A delay to changes to the use of urea fertiliser by at least a year
Revised and improved statutory guidance on the Farming Rules for Water
Slurry investment grants to help meet those rules and further details of the Sustainable Farming Incentive
All the above will reward farmers for manufacturing more organic-based fertiliser products.
For more information or advice on related matters, please contact our experts at Smailes Goldie today.
