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Delinked payments under Basic Payment Scheme

Delinked payments under Basic Payment Scheme

Sally Blowey BSc (Hons) MRICS FAAVSally Blowey BSc (Hons) MRICS FAAV, associate, chartered surveyor and RICS registered valuer, from our Launceston office, has a look at the recent updates from DEFRA about future grant schemes, following on from the autumn budget. 

Further reductions are being made to delinked payments in 2025. Department for Environment, Food, and Rural Affairs (DEFRA) announced on 30th October that they will apply a 76% reduction to the first £30,000 of a payment, while making no payments for any portion of a payment above £30,000.  So, the maximum payment received will be £7,200 per claimant.

This is an acceleration of the previous reductions made which have averaged a 15% cut each year with 2024 being on average 50% of the payment received in 2020. Delinked payments are expected to continue for 2026 and 2027 but no announcement has been made on the expected payment levels as yet.

DEFRA is encouraging claimants to apply for their alternative schemes with £1.8 billion of the 2025-2026 budget for the department targeted at existing environmental land management (ELM) schemes;

Sustainable Farming Incentive

Pays farmers and land managers to manage land sustainably for the benefit of the environment and food production. The scheme is open to applications currently with a rolling start date. New actions are being added all the time with the most recent being Manage Priority Habitat Species-Rich Grassland at £646/hectare.

Countryside Stewardship 

Will provide funding for complex, long-term projects that protect and enhance natural habitats, improve water quality, and foster biodiversity, benefiting both the environment and agricultural productivity. 

When Countryside Stewardship Higher Tier opens, it will have a rolling application window with a streamlined application process to increase accessibility. More information about the timing and content of the expanded Higher Tier scheme is expected in December. 

Farmers with expiring HLS or Higher Tier agri-environment agreements this year will be offered an extension to their existing agreement to give them time to move into new agreements.

Landscape Recovery

This offers farmers important opportunities to enhance biodiversity, protect landscapes, and address environmental challenges.  Round 1 and Round 2 will continue, with news on future rounds expected in due course. 

Grants  

Defra have announced that they plan to simplify and rationalise the grants offer ‘to prioritise the initiatives that deliver the most critical support for food security and environmental goals in England’ meaning changes are coming so if you are considering applying for Capital Grants which are currently open for applications the best advice is to apply as soon as possible. Recent applications have been taking a considerably long time to be processed compared to previously.

If you are interested in applying for funding under the ELM scheme and would like to know more please contact our Professional Services team on 01884 235701 or [email protected]. Stags has a team of rural professionals located across the South West who are happy to help with all grant applications.