Category: Policy & Business

Payment Information Statements

Payment Information Statements were sent out in December.  The Statements will show the ‘Reference Data’; this is based on BPS payments received in the ‘Reference Period’ – 2020, 2021 and 2022 BPS years.  The Reference Data determines the ‘Reference Amount’, basically the average yearly payment received over the three years.  This will be then be paid in each of the years from 2024 to 2027 to those that are eligible, minus the progressive % reductions for that year.  Businesses should ensure they have checked the Reference Data in the Statement against the figures on their BPS Claim Statement for the relevant year(s).  If, after checking, claimants do not agree with the values Defra has used, they need to fill in and return a Basic Payment Scheme: Payment Query Form (see https://www.gov.uk/government/publications/basic-payment-scheme-payment-query-form).  This needs to be completed by the 29th February 2024. 

Transfers

Readers will recall we wrote in November that from 15th February to 10th May 2024 it will be possible for a business, under certain circumstances, to transfer their Reference Data to another business.  Defra has now released further information on how to do this.   Our article of 6th November (see https://abcbooks.co.uk/delinked-payments/) explains the situations under which it is possible to transfer payments – for example mergers, scissions, where land has changed hands, or if the business just wishes to sell their ‘entitlement to the future support’.  Importantly, to receive a Delinked Payment the business must have made a BPS claim in 2023.  This means in the case of transfers the business receiving the payments must have made a claim (except under inheritance).  Furthermore, a business that holds Reference Data from the qualifying years 2020, 2021 and 2022, but did not make a claim in 2023 (e.g ceased trading) will not be able to receive the Delinked payment, but may wish to transfer their entitlement to future support.

In most cases the transfer can be undertaken (fairly simply) via the Rural Payments account of the business transferring the Reference Data.  On Rural Payments under the Basic Payment Scheme tab there is now a Delinked Payments section with a View and Transfer Reference Data tab.  This will take users to a Make a Transfer screen, where the SBI of the business receiving the Reference Data can be entered along with the Reference Data to be transferred – remember this is in £s not entitlements; users should refer to the Payment Information Statements (see above) for the correct figure.  Further guidance can be found via https://www.gov.uk/government/publications/how-to-make-a-delinked-payments-reference-data-transfer-request.

In certain circumstances it may not be possible to make the transfer using Rural Payments.  For instance, in inheritance cases where a business is ‘locked’/has an inactive SBI, or where a business has ceased trading, or if there are unresolved issues affecting the BPS 2020, 2021 and 2022 Reference Data.  Under these circumstances it will be necessary to complete a Transfer Request Form.  This can be found via https://www.gov.uk/government/publications/delinked-payments-transfer-request-form.   Note, it will only be possible to use this form during the transfer period, from 15th February to 10th May 2024.  The only exception to this is in cases of inherited land, where this form will be available until the end of 2027.

Further information on Delinked payment, including worked examples, can be found at https://www.gov.uk/guidance/delinked-payments-replacing-the-basic-payment-scheme

The Scottish Government has pledged that 70% of future rural funding will go direct to farmers under Tiers 1 and 2 of the new support scheme.  The announcment was made by the First Minister, Humza Yousaf, speaking at the NFU Scotland Conference.  No guide was given as to the split between the two Tiers.  Tier 1 is the ‘Base Payment’ that farmers will recieve as long as they meet ‘Essential Standards’ – Greening, Cross-compliance, Whole-Farm plan, Active Farmer rules etc.  Tier 2 is ‘Enhanced Support’ where farmers will get additional funds for implementing Measures that go beyond the baseline.  The overall budget for rural funding is also not known as this is set by the Westminister Government.

Mr Yousaf also announced that there would be a replacement for the LFASS – this had been left vague in previous announcements.  This will now be delivered through Tier 2 once the replacement scheme had been designed.  There would be an aspiration to use a further 10% of the budget (on top of the core 70%) to support LFA farming.  The First Minister also reiterated the Government’s support for livestock farming, stating “I don’t want us to be producing any less food. I want us to be producing more good quality Scottish food. Maintaining food production is at the very heart of our agricultural policy.”  However, he also stressed that the sector needed to find ways to reduce carbon emissions.

The second round of the Improving Farm Productivity Grant is now open.  The application is a two stage process and the Online Checker (the first stage) is available until 21st March 2024.  This round includes grants for the installation of solar equipment for the first time as well as support for automated and robotic equipment.  Our article in December gives more detail (see https://abcbooks.co.uk/improving-farm-productivity-grants-2/).  The full guidance and how to apply can be found at https://www.gov.uk/government/publications/improving-farm-productivity-grant-round-2-applicant-guidance 

The AHDB has published updates to its ‘Characteristics of Top Performing Farms’ reports.  Produced by The Andersons Centre, these look at the traits that set the best businesses apart from the average.  There are three reports that focus on dairy, cropping, and beef & sheep (although only the first two have so far been published).  They can be found via https://ahdb.org.uk/knowledge-library/characteristics-of-top-performing-farms-2024 .

The introduction of import controls for goods entering GB from the EU have been delayed on several occasions due to a lack of readiness by UK authorities.  However, from  31st January, a range of new Customs and Sanitary and Phytosanitary (SPS) controls will be introduced for EU imports.  Further border controls will also be introduced on a phased basis during 2024.  The key changes are summarised as follows;

• From 31st January;
  • Full Customs controls introduced for goods moving into GB ports from the EU
  • Import Declarations need to be pre-lodged and subject to Customs checks and controls
  • Pre-lodged Declarations will need to be entered into the UK’s Goods Vehicle Movement Service (GVMS) and assigned a Goods Movement Reference (GMR) number
  • Pre-notification of all animal product imports and medium-high risk plant product imports.  These needs to be undertaken via the Import of Products, Animals, Food and Feed System (IPAFFS).  The IPAFFS registration number is required before the import declaration can be finalised and this number also needs to be on the GMR.
  • Export Health Certification for medium risk animal & plant products as well as high risk food and feed of non-animal origin from the EU.  Controls on high-risk animal and plant products are already in place
  • Transit Health Certificates will also be needed for medium and high-risk animal products transiting the GB landbridge (e.g. agri-food goods moving from Ireland to the continent via Britain).  Plants will not require phytosanitary certification
  • Goods designated as Qualifying N. Ireland Goods (QNIG) avoid these rules due to the provisions of the Windsor Framework as it is an integral part of the UK.
• From 30th April:
  • Documentary and risk-based identity and physical checks at UK Border Control Posts (BCPs) for SPS goods from the EU, excluding Ireland.  This will include high risk food and feed of non-animal origin from the EU
  • Existing inspections of high risk plants/plant products from the EU will move from destination to BCPs
  • It is also intended to begin simplifying import controls from non-EU countries.  This is to include removing Health Certification and routine checks on low risk animal products, plants, plant products from non-EU sources as well as a reduction in physical and identity check levels on medium-risk animal products from non-EU countries.
• From (or after 31st) October:
  • BCP identity and physical checks for SPS goods from (Republic of) Ireland remain unconfirmed but will not apply before end October
  • The requirement for Safety and Security declarations for imports into Great Britain from the EU or from other territories where the waiver applies will come into force from 31st October 2024
  • There are also plans to introduce a UK Single Trade Window to remove duplication where possible across different pre-arrival datasets – such as pre-lodged Customs declarations.

The imposition of these controls has the potential to cause some delays until the new systems are bedded in.  Much will depend on the preparedness and awareness of EU exporting companies and their Regulatory Authorities in addition to the robustness and preparedness of British systems.  When EU import controls were applied to goods entering Europe from the UK back in 2021 there were some initial delays and disruption, although British exporters did not have as much time to adapt. Three-years on, both exporters from the EU and British importers have at least had more time, although some were still holding out for further postponements in the latter part of last year.  Finally, with a UK election due to take place in 2024, it would be somewhat ironic if the UK Border Controls are finally operational, only for a Labour Government to pursue much closer alignment with the EU on SPS issues.

Further information on the UK Border Target Operating Model, published by the UK Government in August, is available via: https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023

The Welsh Government has announced funding for organic farmers in 2024.  The Organic Support Payment wll provide support to all fully-certified organic farmers (not just those who took part in Glastir Organic) during the transition to the Sustainable Farming Scheme in 2025.  The payment rates are based on the land use as submitted on the Single Application Form (SAF) in 2024 and are;

• Horticulture –  £300 per hectare
• Enclosed land – £45 per hectare
• Enclosed land with a dairy enterprise – £115 per hectare
• Un-enclosed land – £9 per hectare

There is no upper limit on area, but the maximum payment will be tapered as follows;

• 0-200 hectares – 100% of payment
• 200-400 hectares – 50% of payment
• 400+ hectares – 10% of payment

Applications for the payment will need to be made by 15th May 2024 via the annual SAF.  All land under contract must be continuously certified with a recognised Organic Control Body (OCB) for the entire duration of the contract, commencing on 1st January 2024.  A summary of the scheme details can be found at https://www.gov.wales/sites/default/files/pdf-versions/2024/1/1/1705919261/organic-support-2024-summary.pdf .  Full guidance will be published within the SAF 2024 rules booklet.

In Wales, the Organic Conversion scheme opened in 2022 with funding for two year’s of conversion and those who were in Glastir Organic had their agreements extended until December 2023.  This new funding will help plug the gap in support for fully-certified organic farmers in Wales until the new Sustainable Farming Scheme commences.

It has been confirmed that the requirement in England for Biodiversity Net Gain (BNG) will commence on the 12th February 2024.  This means that, from this date, all new Planning Applications for major development made under the Town and Country Planning Act (TCPA) 1990 will have to deliver a 10% net gain in biodiversity.  Major development includes residential developments with 10 or more dwellings, or where the site area is greater than 0.5 hectares.

BNG for small sites will apply from 2nd April 2024.  This includes residential development of less than 10 dwellings or 0.5 hectares or for commercial development where the floor space will be less than 1,000 square metres or the total site area is less than 1 hectare.

BNG will only apply where the Planning Application was made on or after 12th February.  Furthermore, if Planning Permission was received before 12th February, but there is then an application via section 73 to vary a Planning Condition, the new Permission granted (under section 73) would also be exempt from BNG.  Similarly, if a Planning Application for a small-site development was made during the small sites extended transition period, between 12th February and 2nd April 2024, and subsequently a section 73 variation was granted after 2nd April, the same transitional arrangements will apply and BNG will not be required on any subsequent section 73 variations.

In response to the flooding caused by Storm Henk earlier in the month, the Government activated both the Flood Recovery Framework and the Farming Recovery Fund.  Officials in the Department for Levelling Up, Housing and Communities have written to eight County Councils so far; Gloucestershire, Leicestershire, Lincolnshire, Nottinghamshire, Warwickshire, West Northamptonshire, Wiltshire and Worcestershire (others may be added).  This means in these areas;

• flooded households can apply for up to £500 to help with immediate costs
• affected households and businesses can claim for 100% Council Tax and Business Rate relief for at least 3 months
• up to £5,000 can be claimed to make homes and businesses more resilient to future flooding
• small and medium-sized businesses (including farmers) can apply for up to £2,500 from the Business Recovery Grant to help them return to business as normal.

For farming in particular, via the Farming Recovery Fund, those who have suffered uninsurable damage to their land can apply for grants of up to £25,000.

It appears the grants will be available through the individual County Councils who should advise on eligibility and how to apply.

Farmers in England and their agents can now notify RPA of changes to their land online.  The new digital service, called Rural Land Changes, will replace the electronic RLE1 form with the aim of significantly reducing the turnaround time for getting mapping requests completed.  Before completing an SFI or CS Mid Tier application it is important that mapping is correct and the current RLE1 process can hold up applications.  The aim of this new service is to allow more applicatons to be submitted sooner.  Requests via Rural Land Changes will be sent straight to the RPA’s Mapping Team to process, which should mean requests are actioned much quicker.

Rural Land Changes is already available in farmers’ Rural Payments accounts via the links for ‘Land’ and then ‘Request Rural Land Changes’.  The new online service has five options;

• Register New Land – up to 10 unregistered land parcels can be requested at a time.  Annotated maps will need to be uploaded
• Merge Land Parcels – up to 5 land parcels can be merged.  More than 5 will need to be actioned via ‘All Other Land Changes’ – see below
• Full Land Cover Change – where there is just one Land Cover in the parcel.  If there are more than one then the ‘All Other Land Changes’ (see below) will need to be used
• All Other Land Changes – for more complex changes which do not fall into the categories above, including;
  • Make permanent changes to parcels including size and shape
  • Add or remove permanent boundaries to split or merge parcels
  • Add or remove non-agricultural areas or features
  • Link a parcel to two SBIs
  • Merge more than 5 parcels
  • Change land cover where there is more than one land cover in a parcel
  • Make any other changes – except Transfer or Remove Land or to Update Land Use in a parcel; these continue to be done in the usual way via ‘Transfer Land’ and ‘Update Land Use’ on the system.
• See Previous Mapping Requests – this shows the history of changes for the last 5-years.

It is still currently possible to make mapping changes using an RLE1 form on paper or electronically, but during 2024, the facility to send an electronic RLE1 form by email will be removed and the new online option will replace it.  Paper RLE1 requests will continue to be accepted.  A reminder that handwritten RLE1 forms that are scanned and returned as email attachments have never been accepted.

To be able to use Rural Land Changes agents will need to have at least one of the following permissions for their clients on Rural Payments;

• Business Details – Make Legal Changes or Full Permissions
• Land Details – Amend
• CS Applications/CS Agreements – Amend or Submit
• ELM – Amend or Submit

According to RPA it is looking at other ways to ‘improve the mapping experience’ and there are plans to make ‘significant improvements’ over the next year.  We do already know that testing on the GeoPhoto app is due to start soon before being rolled out later this year.

 

Steve Barclay has announced a significant update to the agri-environment scheme offering in 2024.  This will see:

• The introduction of a combined Sustainable Farming Incentive (SFI) and Countryside Stewardship (CS) Mid Tier offering; designed to be easier to access with a single application portal
• An increase in the number of SFI/CS actions on offer, with 50 new ones announced
• On average a 10% increase in payment rates for SFI and CS agreements as from 1^st January 2024
• Paying a premium for ‘high ambition actions’ or for delivering packages of actions that deliver greater environmental benefits.

Combined SFI and CS

From summer 2024 there will be a single application service for SFI and CS Mid Tier options. It is unclear at this stage whether this will result in one ‘combined’ agreement, but the understanding is that there will be ‘distinct’ CS and SFI agreements at least for 2024.  There will be more than 180 options available, with duplication of actions under the two schemes removed wherever possible.  The SFI and new CS Mid Tier (and Higher Tier agreements) will be available through rolling application windows, starting in ‘summer’ 2024 with the first agreements commencing in autumn 2024.  In the meantime, SFI 2023 remains open for applications with an update to some of the payment rates (see table below).

CS Higher Tier agreements, which are more complex, will continue to operate under a separate application process.  However, Higher Tier actions will be made available under the other schemes so farmers will be able to pick from these options, without having a full bespoke Higher Tier agreement, if this is appropriate.

Existing Agreement Holders

Those already with an SFI 2023 agreement will either be able to add to their existing agreement at their annual review or enter into an additional separate agreement in 2024 when the scheme opens.  Existing CS Mid Tier agreement holders will be able to apply for a separate 2024 agreement.

Payment Rates

On average, payment rates for options under both SFI and CS have increased by 10%.  For those with a live SFI or CS agreement, payments will automatically be increased where applicable, as from 1^st January 2024 – agreement holders will not have to do anything.  Defra has said it will review all scheme actions and payments rates on a rolling basis.  The table below shows the old and new payment rates under SFI 2023.

New Actions

Under the new combined offer there will also be in the region of 50 new actions.  These will include support for precision farming and agroforestry for the first time.  There will also be an increase in funding for moorland and the introduction of more ‘maintenance’ options i.e for farmers who already have existing habitats.  A headline example of this is the increase in the payment for maintaining species rich grassland from £182 per hectare to £646 per hectare.  Under the new offering, more of the actions will be available under shorter 3 year agreements (as opposed to 5 years under current CS).  This should benefit tenant farmers.  The new options will fall under the following headings:

• agroforestry
• precision farming
• priority habitats and threatened native species
• enhancing and restoring waterbodies and water courses
• protecting lowland peat

The table below includes a sample of the new options.  As mentioned earlier, it is not yet clear whether there will be a clear dividing line between the SFI and CS in the future, or whether the schemes will merge.  It seems that, in 2024 at least, farmers will still be given separate SFI and CS agreements.  The new SFI actions for 2024 are taken to be those that  have a three-year requirement.  Those that require a 5 (or 10) year term are assumed to be CS options.

A full list of all the actions, both existing and new can be found in the Technical Annex at https://www.gov.uk/government/publications/agricultural-transition-plan-2021-to-2024/technical-annex-the-combined-environmental-land-management-offer.

Defra has said it ‘intends’ to confirm details and timescales around these new actions as part of the full scheme details ‘early in 2024’.

Premium Payments

There will be Premium Payments available for 21 high priority actions which Defra has identified as being required to achieve its environmental outcomes and for doing combinations of actions that deliver greater benefits when done together and at scale.  A list of these can be found via  https://www.gov.uk/government/publications/agricultural-transition-plan-2021-to-2024/agricultural-transition-plan-update-january-2024

SFI 2023 Progress

Defra has reported that 5,300 applications under SFI 2023 had been made as at 18th December.  Of these, 2,200 had been started.