Rural Payment Agency issues the first Basic Payment Scheme advance payments to farmers

The percentage of advance payments will be roughly 50% of the total.

Both the advance payment and the balance payment will be subject to proportionate amounts of escalating reductions.

The Rural Payments Agency stated today that farmers are now receiving advance payments under the Basic Payment Scheme (BPS), which will arrive in their bank accounts in the upcoming weeks (19 July).

To assist farmers with their cash flow, Environment Secretary George Eustice stated in May that payments will be distributed in two instalments annually for the duration of the agricultural transition phase.

The first half of the total payment will be made starting in July, with the final half due in December.

According to Paul Caldwell, CEO of the Rural Payment Agency:

We are aware that many agricultural enterprises experience cash flow concerns over the summer months, especially this year due to problems made worse by the conflict in Ukraine.

I’m happy to report that we have begun paying farmers in advance for BPS;

we anticipate issuing the majority of payments by the end of July.

These two-yearly payments are a permanent adjustment made to BPS to align it with the new environment land management schemes’ more consistent payment schedule.

In the upcoming weeks, the RPA anticipates that the vast majority of farmers will receive their BPS advance.

A small proportion of claims will need further verification, which will make processing take longer.

Farmers who will be impacted will be contacted by the Agency.

Application for the Lump Sum Exit Scheme who has claimed BPS in 2022 will also receive an advance payment.

Advance payments will be approximately 50% of the total.

Both the advance payment and the balance payment will be subject to proportionate amounts of escalating reductions.

Every farmer should confirm that the RPA has their most recent bank account information.

A remittance advise, which confirms the amount paid, is mailed following a payment.

A claim statement outlining how the 2022 payments were calculated will be given when the balance payment is received starting in December.

This expands on a set of policies to support farmers unveiled in March, which include:

A minimum one-year delay in any adjustments to the usage of urea fertiliser;

Legislative guidance on the Farming Rules for Water has been updated and strengthened;

Subsidies for slurry investments to assist in complying with those regulations;

The launch of the Sustainable Farming Incentive, which through making investments in the ecosystems that support healthy soil, water, and food production, will assure long-term food security.

More than 4,000 farmers have collaborated with Defra to test and trial the new strategy.