I think many of you will resonate with me when I say that the weather hasn’t been on our side in the last few months, and it would be somewhat of an understatement to say that it has caused delays to the start of the farming year. However, as we start Spring and the temperatures begin to warm up, I dare to say (rather optimistically) that we are finally through the worst of the wet weather as we look ahead to a busy couple of months, with the lambing, calving and spring drilling and other arable work.

As I am sure many of you are aware, and ahead of the looming general election, Rishi Sunak promised on the 20th February that £2.4bn will be re-invested back into the farming sector, and announced that payment rates for Countryside Stewardship and the Sustainable Farming Incentive (SFI) will increase on average by 10%. Furthermore, many of you who already benefit from a live SFI Agreement together with the additional management payment will see this management payment double to £2,000 this Spring, and this will apply for all new agreements made up to March 2025. Whilst farmers have been making various global headlines in recent weeks, it is good to see a positive response from our Government who appear to have started to acknowledge the fact that any subsidised income must focus on achieving a balance between long-term benefits for the environment and food production.

Further new announcements include:

• An additional management payment for new Countryside Stewardship Mid-Tier Agreements from Summer 2024. Existing Agreement Holders will still be able to benefit from the management payment however they will need to enter into an additional agreement alongside their existing one in order to receive the additional funding.
• A pledge for grants totalling £220 million for farming business to boost productivity and innovation. This includes grants for robotic equipment and rooftop solar under the Improving Farm Productivity Grant; Round 1 proved hugely popular and the initial application window for Round 2 will close on the 21st March 2024.
• A new round of the Farming Equipment and Technology Fund worth £70m, which includes three grants to help buy items to:
• Improve Productivity
• Manage Slurry
• Improve Animal Health & Welfare
• Changes to Permitted Development Rights, which will ultimately look to make it easier to diversify farming businesses by removing existing barriers. This will include changes relating to extending existing agricultural buildings and converting agricultural buildings into residential homes (Class Q).

You will be aware that 2024 is also the start of De-Linked Payments, which signifies a departure from the traditional subsidy framework, the Basic Payment Scheme, that farmers have been accustomed to. Instead of being tied to specific agricultural activities or land use, de-linked payments are decoupled from production, offering farmers more flexibility in their operational decisions. From 2024 to 2027, this new payment structure marks a shift towards a system where financial support is provided without direct correlation to specific farming practices. The rationale behind introducing de-linked payments lies in streamlining agricultural policies, moving away from production-focused subsidies, and encouraging more sustainable and market-oriented practices. By decoupling payments from specific activities, the Rural Payments Agency aims to provide farmers with greater autonomy in their decision-making processes. This transition is part of broader agricultural policy reforms, which it is hoped will foster a more resilient and adaptable agricultural sector.

For farmers and landowners, this shift necessitates a re-evaluation of financial strategies. Previous claimants of BPS will be aware that the emphasis is no longer solely on maximizing production to secure subsidies; instead, considerations must include broader financial planning, risk management, and sustainable practices. The Agricultural team at Bletsoes are working with many clients to prepare applications to the Sustainable Farming Incentive which will complement their existing farming businesses. Furthermore, we are preparing Capital Grant Applications and are advising and assisting rural businesses with applications for grant monies for everything from solar schemes to cattle handling systems.

With spring approaching, the landscape of grazing land sees gradual transformations. Bletsoes has seen an increase in demand for grazing land which may in part result from the recent increases in livestock prices. The heightened demand suggests, if anything, slight potential for increases in the annual grazing licence fees paid dependent upon the specific factors of the grazing parcel and emphasizing the need for farmers and landowners to factor this into their financial strategies.

As the year continues to unfold, reflection and awareness underscores the significance of adapting to this new subsidy landscape while navigating the ever-evolving dynamics found within farming. Bletsoes remains committed in guiding clients through these changes, offering advice to navigate the complexities of de-linked payments and assistance to secure income from SFI and other sources including capital grant applications. In this evolving environment, our commitment to supporting farmers and landowners in strategic planning and decision-making remains constant, ensuring a resilient and sustainable future for the agricultural sector, and therefore please don’t hesitate to get in touch with a member of the Agricultural Team on 01832 732241 for initial support and on-going assistance.  

Alex Abrahams – Graduate Rural Surveyor