Farmers are facing a renewed financial hit as further reductions to delinked payments are confirmed, prompting strong criticism from the NFU.
The union has warned that the latest cuts come at a time when many farmers are still adjusting to sweeping changes in agricultural policy and support.
Figures recently released by Defra confirm that delinked payments will be further reduced in 2026 and 2027.
The maximum payment will fall to just £600 — a significant drop from the current 2025 cap of £7,200, as outlined in the 2024 autumn budget.
NFU Deputy President David Exwood condemned the move, describing it as yet another serious setback for producers already under pressure.
“Having had significant reductions to delinked payments announced only last autumn, to have further big reductions starting next year will be yet another financial blow to many farmers,” he said.
While acknowledging Defra’s commitment to redirect the savings into schemes supporting environmental targets and sustainable food production, Mr Exwood emphasised the need for urgent clarity.
With the Sustainable Farming Incentive (SFI) currently closed to new applicants, he said ongoing delays are exacerbating the situation.
“When SFI fully reopens, it’s vital that the scheme is accessible to all farmers to unlock investment and productivity and prevent ongoing cashflow pressures which are hindering progress,” he added.
Although farmers now have confirmation of their future payments, Mr Exwood stressed that they must also be assured access to the funds redirected from delinked payments in order to plan with confidence.
Delinked payments replaced the Basic Payment Scheme (BPS) in England as part of the government’s wider post-Brexit agricultural transition. BPS officially ended in 2023.
In the 2024 autumn budget, Defra announced an accelerated timeline for phasing out direct payments, with investment refocused on the Environmental Land Management (ELM) schemes.
Under the transition, delinked payments have already undergone staged reductions. In 2024, they were reduced by 50% for the lowest band and up to 70% for higher tiers.
In 2025, payments will be cut by 76% on the first £30,000 of a farmer’s reference amount. No payments will be made on sums above £30,000. These will be made in a single instalment from 1 August 2025.
In 2026 and 2027, support will be reduced further. A 98% cut will apply to the first £30,000 of a reference payment, capping total support at £600. Any amount over that threshold will be cut entirely.
The Rural Payments Agency (RPA) will base these reductions on each recipient’s reference amount, calculated from the average BPS payments received between 2020 and 2022 — not on the value of their 2025 payment.
The RPA is expected to issue individual payment statements to farmers in due course.
