16th August 2023 Posted by - Alexander Accountancy
The Rural Payments Agency has begun to issue the Basic Payment Scheme (BPS) advance payments.
In 2022, Defra announced that payments would be made in two instalments each year for the remainder of the agricultural transition period. Around 50% of the overall payment is being made now with the remaining balance expected from December.
Payments are up to 50% of the total annual BPS payment and will hopefully help farmers impacted by price rises throughout the industry with their summer season cash flow.
The RPA expects the vast majority of farmers to be paid on time, though there will be a small number of farmers whose claims will require additional checks which will take longer to process. The RPA will contact these customers to inform them of the next steps while maximising the number of farmers receiving their advance payment by the end of August.
Since 2021, BPS payments have been reducing each year as they are phased out completely by the end of the agricultural transition period in 2027. This is a process known as progressive reductions and was introduced to manage the transition from Direct Payments as smoothly as possible. The proportionate amount of progressive reductions will be applied to both the advance and balance payments.
All farmers should make sure the RPA has their up-to-date bank account details. Once a payment has been made, a remittance notice is sent in the post confirming the amount paid. When the balance payment is made in December, a claim statement will be sent to explain how the 2023 payments have been worked out.
See: Advance BPS payments to be issued to farmers – GOV.UK (www.gov.uk)
Funding for livestock farmers to improve animal health and welfare
A further £10 million is being made available to cattle farmers in England to help them replace ageing cattle buildings with state-of-the-art facilities, Defra has announced.
As set out in guidance published last week, the Animal Health and Welfare Infrastructure Grant will allocate awards to farmers ranging from £15,000 to £500,000, prioritising new and upgraded calf housing which will improve livestock conditions and help boost farmers’ productivity and profitability.
Through this grant, cattle farmers can access funding for roof-top solar panels on calf housing buildings, fulfilling a key commitment made by the Prime Minister at the Farm to Fork Summit earlier this year. This will enable farmers to improve the thermal insulation of their buildings whilst providing low-cost energy for calf housing.
The government has also announced that more than £19 million has been awarded to over 3,000 pig, poultry, sheep, and cattle farmers who successfully applied to the first round of the Animal Health and Welfare Equipment and Technology Grant. These grants, of between £1,000 and £25,000, will help farmers with items ranging from livestock handling equipment to reduce lameness in sheep or cattle or sealed water tanks to reduce disease transmission in outdoor pigs, to automated monitoring systems and sensors which free up farmers’ time and limit environmental stress in poultry housing.
See: Calf Housing for Health and Welfare 2023 – GOV.UK (www.gov.uk)
