Big changes to the way that farmers and landowners are awarded funding took effect from 1 January 2021 – but 'the full picture is still to emerge'.
Farmers are being urged to make sure they 'watch closely' as the new Agriculture Act takes shape, starting with the end of the Basic Payment System (BPS).
Agricultural lawyer Alexandra Phillips said it was still not clear what opportunities and schemes would replace that support.
The BPS is being phased out over the next seven years during the agricultural transition period, starting with the UK leaving the Common Agricultural Policy.
The new Act will instead provide financial support to reward farmers for work to improve air, water and soil quality, flood management efforts and the protection of wildlife.
But the form that this will take has not yet been set in stone, said Ms Phillips, a senior associate at mfg Solicitors.
“Government has been very up front about scaling back BPS, with the funding due to be halved by 2024, but frustratingly it isn’t clear what’s going to happen in the final three years after that," she said.
“We know the government is working to develop new schemes to replace it, along with the Environmental Land Management (ELM) scheme which is currently being trialled for roll out in 2024 and the Sustainable Farming Incentive, the core elements of which are due to be introduced from 2022."
She said the aim was to move away from what the government said was an 'overly bureaucratic policy', and one toward maximising the land to produce sustainable food with a focus on 'public goods'.
“These changes took effect from the start of the year, but it is a moveable feast," Ms Phillips added.
"Therefore everyone in farming needs to watch closely how it develops and see how it affects them, because the final shape of the replacement for BPS still needs to be decided.”
