Basic Payment Scheme – a guide for all four UK regions

• England
• Wales
• Northern Ireland
• Scotland

Value of entitlements

Defra decided to shift some of the money in the budget “up the hill” and increase payments for moorland farmers as part of the new BPS scheme. The lowland and severely disadvantaged area (SDA) payment rates have therefore been aligned. Payment rates will be €244/ha for lowland and SDA land and €70/ha for moorland.

Modulation and capping

A 12% modulation rate will apply in England until at least 2018, after which it might be raised to 15%. Large claimants will also have their payments scaled back. Anyone claiming more than €150,000 (£130,500) (excluding greening and any young farmer payment) will have the amount over €150,000 scaled back by 5%.

Rural development and agri-environment schemes

A new Rural Development Programme kicked in from 1 January 2015, but the replacement scheme for environmental stewardship, called Countryside Stewardship, did not open for applications until July 2015.

Young farmers

Young farmers are eligible for a 25% top-up on the direct payment paid on the first 90ha of their farm, for each of the first five years of the operation of the business. Young Farmer Scheme claimants need to be an individual, aged under 40 at the time of application and set up as a “head of holding” within the previous five years.

Greening

The amount of arable land you farm governs whether you must comply with greening which means you must abide by the three-crop rule (crop diversification) or establish ecological focus areas (EFAs).

The three-crop rule – also known as crop diversification – means if you have more than 30ha of arable land you must grow at least three different crop types. Those with 10-30ha must grow two crop types.

Farmers with more than 10ha of arable land need to follow the three-crop rule and anyone with more than 15ha of arable land needs to meet the EFA requirements, unless they qualify for an exemption.

What is arable land?

For the purposes of the Basic Payment Scheme, arable land is:

• Combinable crops
• Crops grown for fibre
• Root crops
• Forage maize, forage rape and fodder root crops
• Field vegetables
• Cut flowers or bulbs
• Soft fruits (other than permanent crops)
• Fallow land
• Temporary grassland
• Outdoor pigs (these are classed as temporary grassland)

What is not arable land?

Permanent crops that occupy the land for five years or more and provide repeat harvests. This includes apples, currants, gooseberries, asparagus, short rotation coppice and nursery crops.

What are the crop types?

Spring and winter crop varieties count as separate crop types. But a winter variety sown in the spring still counts as a winter crop and vice versa – the decision is based on the variety rather than the date of planting.

Varieties can be checked against the National List or the PGRO Recommended List. Where available, growers should retain evidence of crop varieties sown.

Barley, wheat, oats and linseed count as separate crops. But industrial rape and normal OSR only count as one crop type as they are all within the same species, Brassica napus.

Similarly, if you grow cabbages, cauliflower, kale broccoli and brussels sprouts it only counts as one crop type as they are the species Brassica oleracea.

Ecological focus areas

Ecological focus areas (EFAs) are very different to the old set-aside regime in that farmers have to choose from a range of options that are weighted according to their environmental value. However, anyone with more than 15ha of arable land has to ensure at least 5% of that land is set aside as an EFA to comply with greening rules.

To meet the EFA requirement, farmers will be able to choose from a list of five options: land lying fallow, buffer strips, catch and cover crops, nitrogen-fixing crops and hedges (see table below for weightings).

Ministers have said they will review EFA options to add to the list in future years, but have decided against any revisions for 2016.

Fallow land

Land can be left fallow to help meet crop diversification rules – so long as it is kept fallow throughout the inspection period of 1 May to 30 June.

Fallow land also being counted towards the EFA rules must meet the definition of fallow for the whole of the fallow period (1 January to 30 June). It must also be at least 2m wide, have a minimum area of 0.01ha and not have any crop planted or sown on it during the fallow period.

Temporary grass can be used a fallow, but grass can’t be sown on this land during the fallow period. The only crop that can be planted during the fallow period are wild bird seed mixes and nectar sources that are an unharvestable mix of at least two crops that support wildlife and pollinators.

Buffer strips

Buffer strips must be next to watercourses or parallel with, and on a slope leading to, a watercourse. To qualify as an EFA, strips must measure at least 1m wide from the top of the bank where the strip is adjacent to the watercourse. No production must take place on a buffer strip, but grazing or cutting is allowed.

Nitrogen-fixing crops

A list of the nitrogen-fixing crops that count as EFAs has been published. One hectare of nitrogen fixing crop provides 0.70 hectares of EFA. The list of eligible crops includes field beans, feed peas, vining peas, red clover and lucerne.

Catch or cover crops

Under the EFA rules, catch crops or cover crops must be made up of a sown mix of at least two different cover types – one a cereal and one a non-cereal – that establish quickly, achieve ground cover and will use available nutrients.  Defra has a list of the crops that can be used.

The regulations don’t allow farmers to include crops that are usually grazed, so kale and stubble turnips aren’t shown as catch or cover crops. Farmers can include other crops in their catch crops or cover crops, but these areas cannot count as part of an EFA. To count as an EFA, catch crops must be established by 31 August  and retained until at least 1 October and cover crops must be established by 1 October and retained until at least 15 January.

Hedges

A hedge can only be used as part of an ecological focus area if it is growing on or next to arable land which forms part of the holding.  To qualify a hedge must have a continuous length of at least 20m and can include gaps as long as the gaps are not more than 20m in length.

Cross-compliance

The number of requirements placed on farmers to keep land in good agricultural and environmental condition (GAEC) has been reduced by one-third from 17 to 11.

For example, soil protection reviews have been removed. Among the existing GAECs that have been retained and rationalised are water, boundaries, rights of way, trees, sites of special scientific interest and scheduled monuments.

The hedge-trimming ban was extended by one month to the end of August and there will be extra protection introduced for earth and stone banks.

In January 2014 the Welsh government announced decisions for the BPS in Wales, but the plans were challenged and quashed in autumn 2014 as moorland hill farmers argued they were unfair. 

This led to a new consultation on the Basic Payment Scheme being launched on 31 March. The consultation ended on 23 June with 233 responses.

The government made a statement on 7 July 2015 confirming its decision to apply a flat-rate payment, on a five-year transition to 2019 with redistributive payments made on the first 54ha of a claimant’s farm to provide a stronger transition.

Value of entitlements

Final rates have yet to be clarified, but consultation documents said it was anticipated that the rate by 2019 will be €243 for the first 54ha of eligible land per farm and €124 for all remaining eligible land. 

Capping and modulation

The government took the decision that very large CAP payments were excessive and so imposed a limit on payments over €300,000 in Wales. Capping rates are as follows:

Wales amounts between €150,000 and €200,000 will be reduced by 15% amounts between €200,000 and €250,000 will be reduced by 30% amounts between €250,000 and €300,000 will be reduced by 55% amounts over €300,000 will be reduced by 100%

A maximum of 15% can be transferred from Pillar 1 (direct payments) to Pillar 2 (rural development schemes) and Wales has chosen to transfer the full 15%.

What is arable land?

For the purposes of the Basic Payment Scheme, arable land is:

• Combinable crops
• Crops grown for fibre
• Root crops
• Forage maize, forage rape and fodder root crops
• Field vegetables
• Cut flowers or bulbs
• Soft fruits (other than permanent crops)
• Fallow land
• Temporary grassland

What is not arable land?

Permanent crops that occupy the land for five years or more and provide repeat harvests. This includes apples, currants, gooseberries, asparagus, short rotation coppice and nursery crops.

What are the crop types?

Spring and winter crop varieties count as separate crop types. But a winter variety sown in the spring still counts as a winter crop and vice versa – the decision is based on the variety rather than the date of planting.

Varieties can be checked against the National List or the PGRO Recommended List. Where available, growers should retain evidence of crop varieties sown.

Barley, wheat, oats and linseed count as separate crops. But industrial rape and normal OSR only count as one crop type as they are all within the same species, Brassica napus.

Similarly, if you grow cabbages, cauliflower, kale broccoli and brussels sprouts it only counts as one crop type as they are the species Brassica oleracea.

Greening

If you have 10ha or more of eligible arable land you are required to meet crop diversification rules and if you have more than 15ha of eligible arable land you are required to carry out both crop diversification and implement ecological focus areas (EFAs).

Farmers who have 10-30ha of eligible arable land need to grow at least two different crops and none of which may cover more than 75% of the arable area.  Growers with more than 30ha of eligible arable land need to grow at least three different crops, none of which may cover more than 75% of arable land. The two largest crops together must not cover more than 95% of arable land.

For example: a farmer has 150ha of arable land, of which 112ha (75%) is used to grow crop 1 (which is not temporary grass, herbaceous forage or fallow). For the remaining 38ha a maximum of 31.5ha can be used to grow crop 2 and at least 7.5ha must be used to grow crop 3.

Ecological focus areas

Ecological focus areas (EFAs) are very different to the old set-aside regime in that farmers have to choose from a range of options which are weighted according to their environmental value. However, anyone with more than 15ha of arable land has to ensure at least 5% of that land is set aside as an EFA to comply with greening rules.

The EFA measures available in Wales are:

On arable land: fallow nitrogen-fixing crops.

On or adjacent to arable land: hedges traditional stone walls.

On any agricultural land on the holding: short rotation coppice land afforested under an eligible Rural Development scheme commitment (that was paid for SPS in 2008).

Nitrogen-fixing crops

These can be planted as a single crop or as a mixture of nitrogen-fixing crops within the same area, but must not be a mixture of nitrogen-fixing crops and other non nitrogen-fixing crops.

Hedges

To be eligible as an EFA, the hedge must be on or adjacent to arable land. There is no minimum length and gaps, including gateways, up to 2m will be considered to be part of the hedge. However, any gaps wider than this should be identified and cannot count towards the length of the hedge for EFA.

Stone walls

Stone walls must be on or adjacent to arable land and must be at least 1m high, but no more than 4m wide.

Short-rotation coppice

The list of species eligible as an EFA is: alder (Alnus), silver birch (Betula pendula), hazel (Corylus avellana), European ash (Fraxinus excelsior), lime (Tilia cordata), sweet chestnut, (Castanea sativa), sycamore (Acer pseudoplatanus), willow (Salix) and poplar (Populus).

Location of EFAs

Short rotation coppice and afforested land can both be located on any agricultural land on the holding, i.e. they do not have to be located on arable land. However, fallow land and nitrogen-fixing crops must be located on arable land and hedges and traditional stone walls may be located either on, or adjacent to, arable land. EFAs are considered to be adjacent to arable land when they are physically touching an agricultural parcel of arable land on the longest edge of the concerned EFA.

Young farmers

Young farmers are eligible for a 25% top-up on Wales average 2019 entitlement value multiplied by the number of BPS entitlements activated in 2015 up to a maximum of 25 hectares.

Note: For hedges and traditional stone walls, the length of the feature is multiplied by the conversion factor and weighting factor to calculate an EFA area. For the remaining types of EFA the area being used is multiplied by the weighting factor only to calculate an EFA area.

Value of entitlements

Under the new deal, the basic payment and the greening payment will move to a flat-rate payment a hectare over a seven-year transition period.  Dard has said it cannot confirm entitlement values until after 2015 claims have been processed. However, the regional average (including the greening payments) per hectare is currently estimated to be around €329/ha but the final rate will depend on a number of factors including the eligible area declared to establish entitlements in 2015. Farmers must have 3ha of eligible land to make a claim.

Modulation and capping

The modulation rate was set at 0% in Northern Ireland after proposals for a 7% cut in direct support was successfully challenged in the High Court.

Dard will cap basic payments at €150,000, meaning a 100% reduction will be applied to amounts above this. Greening payments and payments under the young farmers’ scheme will not be capped.

Rural Development Programme funding

A budget of up to £623m has been agreed with the Northern Ireland Executive for the Rural Development Programme. This is made up of £186.5m of EU money and £186.5m of Dard’s own money.

Young farmers

The amount of top-up payment received by a young farmer will be based on 25% of the total direct payments regional average per hectare, which will be approximately €84/ha. But this will only be paid against the first 90ha of the farm.

What is arable land?

For the purposes of the Basic Payment Scheme, arable land is:

• Combinable crops
• Crops grown for fibre
• Root crops
• Forage maize, forage rape and fodder root crops
• Field vegetables
• Cut flowers or bulbs
• Soft fruits (other than permanent crops)
• Fallow land
• Temporary grassland

What is not arable land?

Permanent crops that occupy the land for five years or more and provide repeat harvests. This includes apples, currants, gooseberries, asparagus, short rotation coppice and nursery crops.

What are the crop types?

Spring and winter crop varieties count as separate crop types. But a winter variety sown in the spring still counts as a winter crop and vice versa – the decision is based on the variety rather than the date of planting.

Varieties can be checked against the National List or the PGRO Recommended List. Where available, growers should retain evidence of crop varieties sown.

Barley, wheat, oats and linseed count as separate crops. But industrial rape and normal OSR only count as one crop type as they are all within the same species, Brassica napus.

Similarly, if you grow cabbages, cauliflower, kale broccoli and brussels sprouts it only counts as one crop type as they are the species Brassica oleracea.

Ecological focus areas

Ecological focus areas (EFAs) are very different to the old set-aside regime in that farmers have to choose from a range of options which are weighted according to their environmental value. Unless farmers qualify for an exemption and they have more than 15ha of arable land they must establish 5% of their arable land as an ecological focus areas (EFAs).

The following areas and features can be used as ecological focus area:

Land lying fallow, hedges, ditches (sheughs), dry stone walls, earth banks, archaeological features, areas of agro-forestry, areas with short rotation coppice with no use of mineral fertiliser and/or plant protection products, afforested areas which were used to claim Single Farm Payment in 2008 and nitrogen-fixing crops.

Hedges

The hedge must consist of woody material (for example, hawthorn, blackthorn or whins) and/or briars, bramble and have hedge like shape and characteristics. Minimum length is 5m and gaps must be more than 5m if they are to be considered as part of the overall length.

Ditches (sheughs)

Sheughs that meet the eligibility criteria for the Basic Payment Scheme can count as an EFA. A sheugh is an open channel with water in it for at least part of the year and no more than 2m wide at the base. They must not be encroached by scrub or other ineligible vegetation or features and must have continuously or intermittently running water.

Dry stone walls

Dry stone walls must be 0.5- 2.30m tall and have a maximum width of 4m.

Archaeological features

Archaeological features on or adjacent to arable land are eligible as an EFA.

Earth banks

An earth bank made up of a core of stones covered with sods may qualify as an EFA, but river banks, earth silo banks or mounds of earth resulting from excavations do not. Where hedges are present on earth banks, either the earth bank or the hedge can be claimed as ecological focus area – not both.

Nitrogen-fixing crops

The following crops will qualify as nitrogen-fixing crops for ecological focus area: spring peas, spring field beans, winter field, spring sweet lupins and winter sweet lupins. Nitrogen fixing crops must be present during the entire period of 1 June to 31 July inclusive. This means that they must be planted prior to 1 June and must not be harvested until after 31 July.

Short-rotation coppice

The list of tree species that can be used for short rotation coppice is alder, birch, hazel, ash, lime, sweet chestnut, sycamore, willow and poplar. The maximum harvest cycle for short rotation coppice is five years.

Value of entitlements

Scotland decided it would make payments on a regional basis to reflect the variation in land quality across Scotland. There are three payment regions. Region One includes better quality agricultural land that has been used for arable cropping, temporary grass and permanent grass. Region Two includes rough grazing with a Less Favoured Areas (LFA) grazing category of B, C, D or non-LFA and Region Three includes rough grazing with an LFA grazing category A. The rates paid in each region will not be know until all 2015 claims have been paid. However, according to Scottish government guidance notes published in March 2015 the anticipated rates are: Region One (€145/ha), region two (€25/ha) and region three (€7/ha).

Modulation and capping

The modulation rate in Scotland has been set at 9.5%.

Capping is the progressive reduction of payments above a certain level with the reduction being used to supplement funding for rural development measures.

In Scotland, direct payments over €150,000 will be reduced by 5%. Direct payments means Basic Payment Scheme money and funding from the sheep and beef support schemes.

Young farmers

Young farmers are eligible for a 25% top-up on the direct payment paid on the first 90ha of their farm, for each of the first five years of the operation of the business.

What is arable land?

For the purposes of the Basic Payment Scheme, arable land is:

• Combinable crops
• Crops grown for fibre
• Root crops
• Forage maize, forage rape and fodder root crops
• Field vegetables
• Cut flowers or bulbs
• Soft fruits (other than permanent crops)
• Fallow land
• Temporary grassland

What is not arable land?

Permanent crops that occupy the land for five years or more and provide repeat harvests. This includes apples, currants, gooseberries, asparagus, short rotation coppice and nursery crops.

What are the crop types?

Spring and winter crop varieties count as separate crop types. But a winter variety sown in the spring still counts as a winter crop and vice versa – the decision is based on the variety rather than the date of planting.

Varieties can be checked against the National List or the PGRO Recommended List. Where available, growers should retain evidence of crop varieties sown.

Barley, wheat, oats and linseed count as separate crops. But industrial rape and normal OSR only count as one crop type as they are all within the same species, Brassica napus.

Similarly, if you grow cabbages, cauliflower, kale broccoli and brussels sprouts it only counts as one crop type as they are the species Brassica oleracea.

Ecological focus areas

Ecological focus areas (EFAs) are very different to the old set-aside regime in that farmers have to choose from a range of options which are weighted according to their environmental value. Unless farmers qualify for an exemption and they have more than 15ha of arable land they must establish 5% of their arable land as an ecological focus areas (EFAs).

The following areas and features can be used as ecological focus area: fallow land, buffer strips,  field margins, catch crops/green cover and nitrogen-fixing crops (subject to management conditions).

Fallow

Land can be left fallow to help meet crop diversification rules, but there must be no agricultural production between 15 January and 15 July. This includes using the land for the storage of materials (irrigation pipes, fuel bowsers, seed boxes) or for the turning of machinery or access (except for occasional use).

Field margins

EFA field margins need to be between 1-20m wide and on or adjacent to arable land. They can be around the margin of a field or split two crops within a field and have to be clearly identifiable and distinguishable for the period 1 January to 31 December.

Catch crops/green cover

Catch crops must be a main crop under sown with a recognised grass seed mixture containing perennial rye grass and / or an Italian rye grass as part of the mix. It must be established between 1 March and 1 October.

A green crop cover must be a mixture of two or more of the following crops: rye, vetch, phacelia, barley, mustard, oats, alfalfa or triticale.

Farmers must not plough and sow any catch crop/green cover to a winter crop in the autumn (prior to 31 December) of the year that it is claimed as an EFA.

But producers are allowed to graze the catch crop after harvest of the main crop and retain the green crop cover until later in the spring to provide winter cover.

Nitrogen-fixing crop

The rules for growing nitrogen-fixing crops as an EFA are tougher in Scotland than in other parts of the UK. The government has introduced additional management restrictions which means  if a farmer chooses this option it must be next to or surrounded by an EFA field margin which meets EFA margin rules. The crops that can be grown either individually or as a mix of two crops) are: alfalfa, beans (including Faba beans), birdsfoot trefoil , chickpea, clover, lentil, lupin, pea and vetch.

The crop must not be harvested before 1 August in order to protect ground nesting birds.