Farming grants & subsidies

Following our exit from the European Union, the UK has overhauled farming support to support the delivery of the government’s overarching goals, introducing fundamental change in the way that farmers and landowners are supported. The new and developing policy has its roots in the Agriculture Act 2020 and the Environment Act 2021, and includes a move away from direct payments to environmentally focussed support schemes, a shift which is reflected in a changing Common Agricultural Policy. To deal with this changing policy, rural businesses will need a major shift.

Updated 1.2.23

The phasing-out of the Basic Payment Scheme

Central government support for farm businesses is being diverted away from the direct payments, which are currently paid under the Basic Payment Scheme (BPS), towards schemes that will deliver “public goods” for which the government is prepared to pay. Farmers are being encouraged to assess the impact of this change on their businesses.

Direct payments through the BPS will be phased out between 2021 to 2027. 

From 2024 future payments are to be de linked from land occupation. The de-linked payment will be based on the average claim value before any reduction / penalty claimed between 2020, 2021 and 2022.

A percentage reduction will then be applied in each year to the reference amount. It is currently unknown what the gradual percentage reductions will be between 2025 and 2027.

Countryside Stewardship

The Countryside Stewardship Scheme (CSS) is an umbrella scheme which provides financial incentives to land managers to help improve and protect the environment. The CSS is open to new applications until July 2023 and is made up of the following elements:

• Higher Tier – target and complex management practices
• Mid Tier – options and capital items that together help to deliver a range of environmental benefits
• The 4 Wildlife Offers – simple set of options to help improve farmland wildlife.
• Capital Grant funding – including the Water Capital only grants, Hedgerow and Boundary grants

Facilitation Fund to support a local co-ordinated approach to environmental management. 

Find out more about the Countryside Stewardship Scheme >>

Lump sum exit scheme

Famers wishing to leave the industry and retire were given the option to receive a lump sum payment of 2.35 times the average annual BPS payment received between 2019 and 2021, with a cap of £100,000 and subject to Capital Gains Tax.

This was a one-off scheme in 2022 and is now closed. Specific details of the scheme and its suitability to individual circumstance should be considered.

Farmers who have already applied must have surrendered all entitlements by 31 May 2024.

Find out more about the lump sum exit scheme >>

Environmental Land Management Scheme (ELMS)

The Environmental Land Management Scheme (also known as ELMS) is a new overarching scheme that will reward environmentally conscious practices in farming, forestry, and land management. The Scheme will comprise three pillars: the Sustainable Farming Incentive (SFI), Local Natural Recovery and Landscape Recovery.

Find out more about ELMS >>

Farming in Protected Landscapes

This scheme is available for farmers in Areas of Outstanding Natural Beauty (AONB), National Parks (NP) and the Norfolk Broads. The scheme is nonprescriptive, with applicants invited to state the type of project that they wish to undertake.

Applications to the scheme are administered locally and considered on a monthly basis. It is anticipated that applications will remain open until March 2025.

Tree Health Pilot Scheme

This scheme is to enable landowners to apply for funding to assist with reducing the spread of pests and disease. The Forestry Commission will invite people and groups in target areas to take part in the pilot scheme, which is running from August 2021 to 2024.

Farming Innovation Programme

The programme is for agri-tech innovation to support farmers, growers, foresters and other businesses to embrace innovative ways to maximise productivity and drive sustainability. The programme is currently open.

New Entrants Support

Running until spring 2023, this scheme is looking for 200 participants. It offers funding for business advice to help grow and improve a business less than 10 years old, to nurturing entrepreneurs with new ideas, including advice on pitching on land and gaining finance. It does not offer direct capital funding.

LOCAL/REGIONAL GRANTS

We are aware of local and regional grants from public and private sectors, please contact your local agent for more details.