The RPA has announced that the first Basic Payment Scheme advance payments are now being issued to farmers and will reach bank accounts in the coming weeks – with the majority of payments expected to be issued by the end of July.
In May, Environment secretary George Eustice announced that payments would be made in two instalments each year for the remainder of the agricultural transition period to help farmers with their cashflow. Around 50% of the overall payment will be issued from July with the remaining balance expected from December.
“We know that cashflow during the summer season can be concerning for many farm businesses, particularly this year due to issues exacerbated by the war in Ukraine. I’m pleased to confirm that we have started to make advance BPS payments to farmers, and expect to issue the majority of payments by the end of July,” says Paul Caldwell, chief executive of the RPA.
“These twice-yearly instalments are a permanent change to bring BPS in line with what will be a more regular payment system under the new environment land management schemes.”
Permanent change
The RPA expects the large majority of farmers to receive their BPS advance in the coming weeks. A small number of claims will require additional checks, which will take longer to process. The Agency will be in touch with affected farmers.
Advance payments will be approximately 50% of the total, and Lump Sum Exit Scheme applicants who have claimed BPS in 2022 will also receive an advance payment.
The proportionate amount of progressive reductions will be applied to both the advance and balance payments.
Defra says that all farmers should make sure the RPA has their up-to-date bank account details. Once a payment has been made, a remittance advice is sent in the post confirming the amount paid. When the balance payment is made, from December, a claim statement will be sent to explain how the 2022 payments have been worked out.
