News
19th Nov

2018

Media Release – MR18/44 – TFA Supports Option for Lump Sum and Delinked BPS Payments

The Tenant Farmers Association (TFA) has spoken out in favour of the proposed plans to allow delinking and consolidation of Basic Payment Scheme (BPS) payments into a lump sum as part of the transition to new agricultural policy in England and Wales.

The option to apply for a delinked or lump sum payment was one of the DEFRA proposals in its ‘Health and Harmony’ consultation document and for which provisions have now been published in the Agriculture Bill going through Parliament.

TFA Farm Policy Adviser, Lynette Steel said, “Opting for a delinked payment will simplify how BPS payments are received and will allow land use decisions to be made on economic and business grounds rather than driven by the requirements of the support regime.  The ability to claim payments as a lump sum could allow recipients to use the capital to promote on-farm investment to drive productivity and profitability, or investment into on, or off farm diversified activity”.

Another major advantage of a lump sum payment would be to assist with retirement and restructuring.

“For tenant farmers, particularly those on older, secure tenancies, a lump sum payment could unlock the possibility of a housing solution for future retirement or, coupled with a payment for a tenancy surrender, provide a more immediate move into retirement allowing their holding to be farmed either by a new entrant or another farmer looking to progress their business,” said Lynette.

With only a few details available for how delinking and lump sum payments would operate, the TFA has produced a short paper to provide some suggestions on how the arrangements could work in practice.

“The TFA’s paper is an attempt to put some flesh on the bones of the initial idea.  It looks at rules of eligibility, payment mechanisms, the impact on the future use of farmland previously used to be matched with entitlements and how the success of the scheme should be evaluated.  We will be using the paper as part of our ongoing discussions with DEFRA and the Welsh Government,” said Lynette.

 

Date:  19 November 2018                                                           Ref MR 18/44

Notes for Editors

A copy of the TFA’s paper on Delinked and Lump Sum Payments is available here: http://bit.ly/2Bhy4kU or further information contact Lynette Steel on 07584 220121 or TFA Communications and Events Co-ordinator Julia Meadows, on 0118 930 6130 or 07887 777157.

Share This :