Questions for farmers to ponder
As farmers in England finalise and submit their claims for the 2021 Basic Payment Scheme, they will be estimating what the impact of the reduction will be in cash terms when the payment is received later this year.
Questions which arise are – how many have taken this one step further and looked closely into how the cash they receive will change in the next few years and how many can cope when that reduction starts to impact?
In cash terms, these reductions mean that, for most businesses, the level of subsidy received in 2024 will be approximately half of what was received in 2020. They need to consider how that will then impact on covering the cash needs of the business, things like drawings, tax, reinvestment and servicing of borrowing.
All farmers need to be thinking about these matters and that thinking, planning and taking action needs to start now.
One thing you could do to help as you prepare for this unfolding future is visit berrys.uk.com to see how your BPS will reduce by using our online calculator, and you can learn more about how you can be supported through this significant change by contacting professionals such as ourselves.
Mark Lord of Berrys.
