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Lump-sum exit payments: What does it really mean?

Wednesday 19th May saw DEFRA provide further information regarding the transition period from the previous CAP led support to a new UK farm support policy, particularly in relation to the much-anticipated lump sum/delinking payments that were alluded to in their ‘Farming is Changing’ document.


Lump-sum exit payments will see eligible farmers paid up to the capped amount of £100,000 to exit the industry.  Individual payments will be calculated on a reference period from 2018-2020 and a BPS claim must have been submitted in 2015.  BPS entitlements will be cancelled and land must then be sold, rented out, or surrendered (if tenanted).  Dwellings, commercial property, and a small proportion of agricultural land may be kept.  Applications for lump sum exit payments can be submitted from early 2022.

Delinked payments will be introduced from 2024 and are intended to simplify the process of accessing the remaining BPS support for farmers.  These payments will likely be based on the same reference period as the lump sum exit payments (2018-2020) and applicants will still need to be actively farming in 2024 to be eligible.  Delinking will not be optional.  Payments will no longer be linked to the area of land farmed or entitlements held.

It is likely that the schemes will be more attractive to tenant farmers or small-scale owner-occupiers though no one size fits all approach exists. DEFRA will be taking responses to the consultation until the 11th of August 2021.

Our recent Changing Landscapes campaign took an in-depth look at many of the scenarios farmers will face when considering Lump sum or Delinked payments.  For further details or to discuss the opportunities Lump sum and Delinked payments offer you and your business contact a member of our team.


Sam Dale - GSC Grays

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Sam Dale
Senior Farm Business Consultant

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