Rapid decline of delinked BPS payments: next year's cut revealed
Payments due to virtually disappear in 2026, in another blow to farm business cashflow and profitability
Delinked Basic Payment Scheme (BPS) payments to farmers will virtually disappear next year, Defra has confirmed.
The delinked payments ramp up for 2026 and 2027, with a 98% cut to the first £30,000 (a maximum payment of £600, compared to £7,200 this year).
The proposed annual spend on BPS in 26/27 is £20m, compared to an estimated £324m this year.
CLA President Victoria Vyvyan said:
“In the context of last week's Spending Review the sharp fall in BPS payments was expected but is nonetheless unwelcome. It will hit especially hard those whose profit margins are now cut to the bone."
While there might be a consolation that the new SFI 2026 scheme could be ready for applications in spring 2026, there is as yet no clarity on what that will look like and who will have access to it
“The reduction in productivity investment over the next three years will also risk dampening investment, at a time when businesses need to look at new technology and equipment to drive efficiencies and improve environmental sustainability.”
What else has been announced?
The trajectory for reduced spending on productivity is also set out, with a pot that shrinks by £100m over three years.
The Environmental Land Management (ELM) schemes pot will grow a little, from £1.95bn in 2026/27 to £2bn by the end of this Parliament.
The Rural Payments Agency (RPA) will write to delinked payment recipients with information about these changes in due course.