England’s farm support landscape is changing at great pace. The old system of direct payments, also known as legacy subsidy schemes, is slowly but surely winding down, being replaced with the new environmental schemes. These changes could affect your income, your land management plans, and your overall business strategy.
For many years, the Basic Payment Scheme (BPS) was the key support, providing financial aid to farmers and landowners. In previous years £1.87 billion had been given out to around 82,000 businesses. By 2024/25 this number had gone down to about £811 million. These legacy schemes are fading out with the projected payments to reduce further to £20 million by 2026/27. This reduction shows that relying on legacy subsidy schemes is increasingly risky. Transitional rules do exist, but they are strict. Payments below £30,000 are predominantly phased out, and larger payments will be reduced to zero over time. Landowners and farmers who depend on these payments will need to plan for a different way of funding.
Legacy schemes are being replaced with new environment reward schemes which change the way landowners, farmers, and land managers perform their everyday tasks. The environmental factor for the eligibility of these newer schemes, like the Sustainable Farming Incentive (SFI), will play a huge role in the way they function, for example in areas such as scheme eligibility, strategy and workforce funding. The main role in determining eligibility and funding is down to environmental outcomes such as biodiversity, soil health, and water management. The Countryside Stewardship Higher Tier scheme offers grants for habitat restoration, ancient meadows, wood pastures, and other complex sites. Meanwhile the Landscape Recovery scheme supports large-scale, multi farm projects that deliver significant environmental benefits.
Some might argue that this is not what our country’s agricultural industry needs at the moment and there should be a greater focus on the overall performance of these businesses to help boost the economy.
You might ask yourself “How does this affect me and my business?” – well, for anyone managing land, these changes have big impacts. If your land can support environmental projects, the new schemes could provide alternative income streams. Although, at the same time, competition for these grants is high with complex eligibility rules.
If you are a landowner you will need to review your strategy, understand which schemes you qualify for, and how to adjust your farming or land-use practices to maximise your funding.
For more information and or advice regarding agricultural and environmental funding schemes – do not hesitate to contact Frank Smith & Co Solicitors on 01242 801 748 or contact us at https://www.franksmithandco.com/about-us/contact/
10.11.25