“THE next few years will allow farmers and landowners to invest in their infrastructure and equipment before BPS has been fully phased out, but they will need to be proactive in finding new sources of income going forward” – that is the warning from Guy Sampson, associate director in rural management at Savills.

The way in which the sector receives support from the Government is changing and this will be seen first-hand in December, when the Basic Payment Scheme (BPS) payment received on farm is lower than in 2020.

This payment will gradually reduce until 2028 when the BPS will have been phased out completely. However, the Government has stated that all of the funds saved from payments until 2024 will be put into other areas of agricultural support to boost productivity.

At present, the only additional funding available is through the Countryside Stewardship Scheme and unlike previous years, greening is no longer required as part of the BPS process, making stewardship now look more appealing.

It is also a way to secure income for the next five years and, should the Environmental Land Management scheme be a better option, agreement holders will be able to switch without penalty.

If a five-year scheme is not for you, or you are still in a Higher Level Stewardship agreement, it is worth looking at the Countryside Stewardship Capital Grants scheme where funding is available for standalone capital items. The deadline is this month, so applicants are encouraged to act sooner rather than later. While there is a £20,000 cap on items, it is thought this scheme will reopen in 2022 meaning works could be carried out on a rotational basis.

Looking ahead, the Farming Investment Fund will open in autumn 2021 and will support technology and productivity, with the grants funding equipment, technology and infrastructure. For those planning a larger project or investing, it may be worth waiting a few months to see whether other options emerge.

The next few years will allow farmers and landowners to invest in their infrastructure and equipment before BPS has been fully phased out.

From 2022, capital grants will be available to support animal welfare improvements and vet visits for health and welfare management planning will be supported too. The Sustainable Farming Incentive (SFI) scheme within ELM will also launch, paying for achieving standards.