The Department for Environment, Food, and Rural Affairs has announced that it will be making advance payment of 50% of BPS subsidy payments for this year. This change has been made in recognition of the difficulties farmers are currently facing: with fertiliser prices and input costs like tractor diesel spiking, farmers are carrying an increased risk on their profit and loss account, and their short term cash flow is under greater pressure
. As a result, 50% of this year’s BPS payment will be brought forward as an advance injection of cash to farm businesses from the end of July, to provide some confidence and support farmers with their business planning during these difficult times.
The balance will be paid in the legacy payment window from December. There are plans to make this a permanent change to the way BPS is paid in future with twice yearly instalments going forward.
Grantham MP Gareth Davies said: “I am delighted that farmers are being provided with the cashflow support they need to be able to plan for the year ahead, in light of great challenge posed by spiking fertiliser costs, in addition to the important support already announced by the Government. I hope this will give local farmers the confidence they and their businesses need to keep doing their vital work.”
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