Basic Payment (BPS) subsidy scheme in place for farmers may fall by 20%

Rural estate agents are predicting that the Basic Payment (BPS) subsidy scheme in place for farmers may fall by 20% post Brexit with a continuing decline after 2020

Farmers are warned that they only have two years to get their ducks in a row before the impending unknowns of Brexit. George Chichester, farming partner at Strutt & Parker, states that “subsidy support will be less and trade tariffs may well apply, and even if not, then our markets are at risk of being undermined by cheap imports from elsewhere in the world”.

BPS is by far the biggest of the EU’s rural payments and grants that assist the farming industry. The annual BPS application process for farmers begins in May and is hopefully paid in December of the same year. The payment being a crucial percentage in relation to their income. Speculation highlights some form of ongoing subsidy and support would remain, but this would likely be focused on environmental stewardship schemes requiring greater environmental accountability of farmers for payments to continue. On that basis, it is fair to assume that BPS payments would fall by 20% in 2020 and may continue to decline thereafter.

A solicitor in the Agriculture & Estates team at Ashtons, comments: “Many of our clients are considering alternative business structures, innovation and renewable energy opportunities as a way forward. If you would like individual advice about the legal issues and options in relation to these points please get in touch.”