LATEST: Basic Payments will be reduced by the following percentages in 2021 for farmers in England, @DefraGovUK has confirmed.
#NFU20 #NFU2020 (thread 1/10)
#NFU20 #NFU2020 (thread 1/10)
For example, for a claim worth £40,000, a 5% reduction would be applied to the first £30,000 and a 10% reduction would be applied to the next £10,000. (thread 2/10)
The reduction percentages will be increased over time until the final payments are made for the 2027 scheme year. (thread 3/10)
The reductions in Direct Payments will be reinvested directly into the farming and land management sector, says @DefraGovUk (thread 4/ 10)
Specifically in 2021, Defra says it will reinvest the money saved from Direct Payments in the following ways (thread 5/10)
[It's complicated but] Defra plans to "delink" Direct Payments (maybe as early as 2022) as they are being phased out so recipients no longer have to farm in order to receive (thread 6/10)
Defra says it will also look to offer farmers a one-off optional lump sum payment in place of Direct Payments. (thread 7/10)
Some farmers may choose to use this lump sum to invest in their business to boost their productivity and profitability. Others may choose to use the money to diversify their activities, says Defra (thread 8/10)
As there will no longer be a need to have land in order to get the payment, Defra says: "Some farmers may decide to stop farming altogether and use the payment to contribute to their retirement or move to another sector." (thread 9/10)
Defra says: "This should facilitate restructuring, creating opportunities for existing businesses to expand and new entrants to join the industry." (thread 10/10)
