Today, the Government has announced further steps to support farmers with cost pressures caused by demand and instability seen across the globe. Under the latest plans, Direct Payments in England will be paid in two instalments each year for the remainder of the agricultural transition period to help farmers with their cash flow.
The deadline for submitting Basic Payment Scheme 2022 applications is Monday, 16 May 2022. Under these plans, farmers with eligible applications will receive the first payment of 50% from the end of July and the second from December.
With agricultural commodities closely linked to global gas prices, farmers face rising costs for inputs, including manufactured fertiliser, feed, fuel and energy. Due to heightened worldwide demand as the global economy reawakened following Covid, by February, the gas price had quadrupled from the previous year, and with the instability caused by Putin’s illegal war in Ukraine that price has risen further.
“Last month, I met with the local National Farmers Union and local farmers in my constituency. They were clear that changes to this year’s BPS payments would provide a welcome boost to cash flow during these uncertain times.
I am delighted that the Environment Secretary has listened to these concerns. These changes will provide farmers with clarity about the future so that they can make long-term decisions about the land they farm.
I look forward to continuing to meet with local farmers and sharing their concerns with the relevant ministers so that we can further support this vital industry.”
Environment Secretary, George Eustice, said:
“While increasing farm gate prices may mean that farm profitability remains stable, we recognise the short term pressures on cash flow.
We have decided to bring forward half of this year’s BPS payment as an advance injection of cash to farm businesses from the end of this July. It will give farmers some additional cashflow earlier in order to provide some confidence. We will also make this a permanent change to the way we pay BPS in future with twice yearly instalments going forward.
In the days of the EU this would never have been possible due to the way audits worked and the need to enforce the three crop rule during the summer.”