Shropshire farmers urged to seek advice about phasing out of Basic Payment Scheme
Farmers are being encouraged to seek expert advice about the complexities involved in phasing out of the Government’s Basic Payment Scheme which will see remaining payments being delinked from land.
Rural chartered surveyor Louise Preece, associate director and head of Rural Professional Services at Halls in Shrewsbury, says professional advice is especially important where there have been changes to a farm business since 2020.
“We are constantly being asked whether the right to delinked payments from the Basic Payment Scheme can be transferred,” she explained.
“Payments from 2024-2027 will be based on the average received during the ‘reference period’ of the years 2020-2022.
“Whilst the vast majority of claimants will still be farming the same land, it makes perfect sense for them to receive future payments. However, there will be instances where business changes have taken place since 2020 and thus it will be necessary to transfer the reference period and the right to delinked payments.
“Such instances include where businesses are merged, split or restructured and where land is sold, inherited or a tenancy has ended.”
The window for transfer of the reference period opened on February 15 and closes on May 10, 2024.
“To be eligible to receive delinked payments resulting from the transferred reference period, a claimant will need to have submitted a valid claim in 2023,” added Louise. “Alternative rules apply where land is inherited after May 2023, so the new owner was not in a position to submit a 2023 claim.
“If farmers wish to transfer some or all of their reference period to another claimant, I recommend that they seek professional advice early and start the process as soon as possible.”
