BPS Lump Sum Exit Scheme
DEFRA has launched its BPS Lump Sum Exit Scheme which pays up to £100,000 to farmers who wish to retire or leave the farming industry.
Open for applications until the 30th of September 2022.
To be Eligible you must have:
- claimed and be eligible, for BPS payments in the 2018 scheme year or in an earlier scheme year or
- inherited agricultural land in England, or succeeded to an Agricultural Holdings Act 1986 tenancy, after 15 May 2018.
To Qualify: you will have to transfer out of your agricultural land and surrender your BPS entitlements to the RPA by the 31st of May 2024.
You can retain up to 5 acres of agricultural land, non-agricultural land, and any land you intend to plant with trees under a woodland creation scheme.
Your Lump Sum Payment will be calculated by multiplying your average BPS payment over 2019-2021 by 2.35. The reference amount is capped at £42,500.
Payment of the Lump Sum will only be made once BPS entitlements are surrendered and the RPA has received evidence that your land has been transferred.
Already submitted a 2022 BPS claim?
You can still apply for the Lump Sum Exit Scheme. If your application is successful, your BPS 2022 payment will be deducted from your Lump Sum amount.
Update: DEFRA has announced that 2022 BPS payments will be made in two instalments. The first payment of 50% will be made from the end of July and the second from December 2022.
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