BPS Delinked Payments in 2025

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Ellice Hahne (FCG Midwest)

The delinked payments replacing the Basic Payment Scheme (BPS) will continue to reduce in 2025, at a faster rate than was initially expected, especially for larger farms.

The delinked payments are a percentage of your reference amount (the average BPS payment you received in the years 2020-2022).  In 2024, the delinked payment amounted to 50% of the reference amount, paid in two installments.

This will change in 2025.

Farmers will be paid 24% of their reference amount, capped at £7,200.  The way the RPA calculated this is as follows:
Reference amount of £30,000 or less – reduction of 76%
Reference amount over £30,000 – reduction of 100%

This means that the maximum anyone can receive is 24% of £30,000 (£7,200).

The RPA aim to pay the delinked payment in one instalment, from 1st of August 2025.

Here are a few examples of how the reduction will affect incomes:

  1. Your reference amount (average BPS from 2020-2022) was £20,000.  In 2024, you received £10,000, and in 2025 you will receive £4,800.  It is a large, but linear reduction of income.
  2. Your reference amount (average BPS from 2020-2022) was £50,000.  In 2024, you received £25,000, and in 2025 you will receive £7,200.  If it wasn’t for the cap, you would be receiving £12,000.  This is a big, unexpected reduction of your income.

Considering the fast reduction of BPS delinked payments, it is essential to stop and think about how this will affect your business, and how you can make up the income lost.  There are several ways to mitigate the loss of BPS payments, be it by reviewing your costs, increasing your income, or a mixture of both.

We understand that the loss of BPS income can be a burden on you and your business, please contact us to discuss how we can help you navigate this.

Contact your local FCG office or email Ellice at ellicehahne@fcgagric.com or your local FCG Office for help.

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