Updates 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 form. 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 waiting for Parliamentary approval. Subject to that approval, we expect the Regulations to come into force towards the end of March.

Progressive reductions

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.

Simplifications and other updates in 2021

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 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 has not 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 evidence

We can now accept changes to your application and supporting evidence 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 ‘Making an application’ 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 ‘Changing a BPS 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 form

The paper application form (BP5) has not been reformatted following BPS simplifications. Therefore, some sections have been greyed out, 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.

Why not apply online

If you have received a paper application form but want to apply online, call us on 03000 200 301 to set up your online application.

Be aware of fraud

Fraudsters may target farmers who receive subsidy payments and we are aware that in the past some customers have received emails, texts and telephone calls claiming to be from RPA or Defra. Links to a fake website designed to look like an authentic RPA or Defra online service are sometimes included in the message.

We will not send emails or text messages with links to websites asking you to confirm your personal details or payment information. We strongly advise anyone who receives such a request not to open the link and delete the item.

As fraudsters may target farmers who receive subsidy payments, remember:

  • never discuss your bank account details with someone you don’t know
  • we will not ask you to make a payment over the phone
  • delete any emails or texts you do not believe are genuine, and do not open any links – our main email addresses are:
  • be cautious about what information you share externally, particularly on social media.

If you suspect an attempted fraud or feel you have been the subject of fraud, you can contact:

  • RPA’s Fraud Referral Team on 0800 347 347 or FraudInConfidence@RPA.gov.uk
  • Action Fraud (the UK’s national reporting centre for fraud and cyber-crime) on 0300 123 2040.