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    Chartered Surveyors, Valuers & Land Agents

  • Lump Sum retirement payment

  • Defra have announced some details outlining their thoughts on a possible lump sum payment for retiring farmers and further detail on the de-linking of payments post 2024.  A consultation document has been released.

    Retirement lump sum

    As part of the process of inviting consultation responses the document makes comments on what might be possible and their current thinking relating to how the lump sum payment might work. 

    Here is a broad outline

    • The lump sum payment will be capped at £100,000.  Payments will be calculated using a reference period to provide an average (likely to be 2018/2019/2020) and a multiplier of 2.35.
    • In order to qualify, farmers must leave the industry i.e. sell or let their land or relinquish a tenancy
    • After receiving the lump sum payment farmers will not be able to claim for new land management schemes such as Countryside Stewardship.
    • It will not be available to new entrants; farmers will have had to be claiming prior to 2015.
    • If farmers choose to let land tenancy agreements should be for at least 5 years.

    De-linking

    Delinking of payments will apply to all BPS payments from 2024.  Regulation will no longer be based on cross compliance and will be simplified.  Eligibility for payments will be based on a reference period again likely to be 2018/2019/2020) and needs to be farming in 2023.

    Defra’s consultation is running until 11th August.  Final details on the lump sum payment will then be available in October.

    We will be following the consultation process closely and are happy to talk through the potential options available to clients at any time.