Updates for 2021
This section provides updates to the Basic Payment Scheme (BPS) rules for 2021.
There are updates to the Basic Payment Scheme (BPS) rules for 2021. Some of these changes will affect the information you need to give us in your application. These are outlined below with more detail provided in this guidance document and the ‘Basic Payment Scheme: rules for 2021’.
These updates apply from 2021 onwards. They do not apply to any previous BPS claims that you have made.
At the time of publication, the Direct Payments to Farmers (Reductions and Simplifications) (Amendment) (England) Regulations 2021, which set the progressive reductions for BPS 2021 and the percentage of the young farmer payment, and remove the existing 5% reduction for payments over €150,000, are awaiting Parliamentary approval. Subject to that approval, we expect the Regulations to come into force towards the end of March.
Over the next 7 years, we plan to progressively reduce Direct Payments. This gradual approach is designed to help everyone manage the transition as smoothly as possible. The same amount will be available to the farming sector in every year of this Parliament, though the way it is distributed will change. This means funds will be redirected straight back into Countryside Stewardship and our new schemes. 2021 will be the first year that BPS payments will be reduced as part of the phasing out of Direct Payments.
As in previous years, your BPS 2021 claim value will depend on the number of entitlements, with eligible hectares, you claim in 2021 and on whether you claim the young farmer payment. Progressive reductions will be applied to your total claim value (after any other reductions or penalties). You can read more about this in the ‘Basic Payment Scheme: rules for 2021’ in the ‘Changes to BPS payments from the 2021 scheme year: progressive reductions’ section.
The 5% reduction previously applied to BPS amounts over €150,000, no longer applies.
The land-use screens still contain some features that were previously relevant only for greening. You should ignore these.
There is no need to enter information for features in a land parcel that are measured in linear metres and would previously have counted for Ecological Focus Areas such as hedges and buffer strips. You can ignore or delete any information that is already pre-populated on the land-use screen for these features.
You do not need to enter information for a land parcel in rotation 2, which was previously used to notify catch or cover crops for Ecological Focus Areas. We will ignore any information entered in this column. The Rural Payments service will not allow you to enter information for rotation 2 for a land parcel that does not already have information entered for rotation 1, so this should not be a cause of errors.
Greening
From the 2021 scheme year, we have permanently removed all three of the greening requirements: crop diversification, Ecological Focus Areas and the greening permanent grassland rules. Other rules still apply to protect permanent grassland, please see information below. You will no longer receive a separate greening payment; the greening funds will be included in the value of BPS entitlements.
Permanent grassland
As in previous years, you must not plough or convert permanent grassland it if it is in a Natura 2000 site. For any other permanent grassland, you must get a screening decision from Natural England before you plough up or improve land which hasn’t been cultivated for 15 years, or which is uncultivated or semi-natural grassland (or another semi-natural area). If you are in a Countryside Stewardship (CS) or Environmental Stewardship (ES) agreement you will also have to meet the rules for permanent grassland for those schemes.
Cross border farms
If you have land in more than one part of the UK (England, Northern Ireland, Scotland or Wales), this will no longer be treated as a single holding for BPS. BPS applications submitted in England will now be treated completely separately from any applications you make to other UK administrations for land in another part of the UK. You should only enter your English land onto your BP5 form. You can read more about this in the ‘Basic Payment Scheme: rules for 2021’ in the ‘Simplifications and other updates in 2021’ section.
These rules apply to your English claim and land. We will calculate and apply any reductions or penalties to your English claim only. You should read the guidance issued by the devolved administrations for the rules that will apply to claims you make in other parts of the UK.
Important: if you are making a separate application for land in another part of the UK to England, you must make sure you have updated your bank details to allow that Agency to make payments to you.
To apply for BPS in England you need to claim on at least 5 entitlements, with at least 5 hectares of eligible land in England (the minimum claim size). However, from 2021 there is an exemption for some farmers who had a cross-border holding in 2020. You meet the exemption if, for BPS 2020, you:
- had eligible land in England and another part of the UK
- had less than 5 hectares of eligible land in England; and
- claimed BPS and were eligible for payment in relation to some or all of your English land.
Other than this minimum claim size exemption for some farmers, your application will be treated the same as any other English application.
Entitlement usage
You no longer have to use all of your entitlements (in a single application) at least once every 2 years to avoid losing some in the second year. This means you do not have to sell or lease out entitlements to keep them You can read more about this in the ‘Basic Payment Scheme: rules for 2021’ in the ‘What are entitlements?’ section or you can see updated information in the Rural Payments service.
Force Majeure
The deadline to tell us about a force majeure and exceptional circumstance event for BPS, has been extended to 8 weeks. You can read more about this in the ‘Basic Payment Scheme: rules for 2021’ in the ‘Force majeure and exceptional circumstances’ section.
Deadline for making changes to your application / submitting supporting documents
We can now accept changes to your application and supporting documents relating to your application up to midnight on 11 June without incurring any penalties. You can read more about this in the Basic Payment Scheme: rules for 2021’ in the How to apply’ section.
Obvious errors
We have also changed the rules so that we can be more flexible on what can be considered an ‘obvious error’ on your application. You can read more about this in the Basic Payment Scheme: rules for 2021’ in the ‘Making an application’ section.
New Forest common land
How we allocate common land in the New Forest was subject to a consultation exercise which closed on 3 February. You can read more about this in the ‘Basic Payment Scheme: rules for 2021’ in the ‘How to claim on common land in the New Forest’ section.
Payment in sterling
We will continue to make all BPS 2021 payments in sterling only. There is no option to receive your payment in euros. We will also show entitlement values in sterling and calculate the payments in sterling rather than using an exchange rate.
BP5 application summary
The online application summary has not been reformatted following BPS simplifications. Therefore, some sections have been removed, such as Part D: Greening, and Part I: Land in more than one area of the UK. Remaining sections stay the same as previous years, for example Part C: Field data sheet and Part H: Entitlements.