Farmers in England will see Basic Payment Scheme (BPS) funding phased out and new agri-environment funding rolled in over a seven-year transition period under proposals outlined in the Agriculture Bill.
BPS money will be reduced in stages from 2021-2027, with none available in 2028. The cuts have been announced for 2021 but no figures are available beyond that.
Businesses receiving up to £30,000 in BPS will face a reduction of up to 5%, with those receiving £150,000 or more seeing a reduction of 25% in 2021.
The new Environmental Land Management system (ELMs), also referred to as Environmental Land Management scheme, began its test and trial period in 2019, with pilots planned to run from 2021.
Defra’s ambition is for 1,250 businesses to enter the ELMs pilot scheme in 2021, building to 15,000 by the end of the pilots in 2024.
The ELMs will replace BPS and Countryside Stewardship funding and its rollout is planned from 2025-2027.
According to a National Audit Office report published in June 2019, Defra aims to have enrolled 82,500 farmers and land managers by 2028.
Environmental services and benefits
It will pay farmers for environmental services and benefits, with pricing based on a natural capital valuation approach.
The benefits include: improved air, water and soil quality, increased biodiversity, climate change mitigation, cultural benefits and better protection of historic environments.
Defra secretary Michael Gove has promised farmers transferring from agri-environment schemes into ELMs will not be disadvantaged.
Legislation to deliver the new system was introduced to parliament in September 2018, following the UK government’s Health and Harmony consultation.
The scheme will reduce the complexity of the application process, according to Defra.
However, the Bill still has to go through the parliamentary process and could be amended. It could also be changed or scrapped by a new administration.
The progress of the Bill can be tracked on the parliament website.
As of Monday 9 September, the Agriculture Bill will make no further progress, as it failed to complete its passage through parliament before prime minister Boris Johnson suspended the session.
This page will be updated as more information about ELMs is released.This article was last updated on 13 September 2019.