Since 1st January 2021, the Agricultural Transition Period has been in place, a Government plan introduced by the Department for Environment, Food, and Rural Affairs (Defra).
As part of this transition period (2021 – 2027) Defra will gradually be reducing, and then finally cease, all untargeted Direct Payments.
What Does this Mean?
Direct Payments were paid to farm businesses based on the amount of agricultural land they maintain, a system that has been in place since 1957. However, evidence suggests that Direct Payments offered poor value for money, and introduce distortionary incentives. There is evidence that they inflate farm rents, and hinder productivity and growth.
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What will happen next?
The money that would have been spent on the Direct Payments is being planned to be used to support agriculture in a number of ways. Farmers will be paid to improve the environment, improve animal health and welfare, and to reduce carbon emissions.
The funding will be aimed at three levels of support. These will be:
- Investing in sustainable farming practices
- Creating habitats for nature recovery
- Making landscape-scale change for ecosystems
Some options will be universally open to all farmers and land managers, while others will be more targeted at a smaller number of large projects. There will also be significant grants made available to support farmers to reduce their costs and improve their profitability, to help those who want to retire or leave the industry, and to create new opportunities and support for new entrants coming into the industry.
Farming in Protected Landscapes
Since 2021, Cranborne Chase has facilitated Defra’s Farming in Protected Landscapes (FiPL) programme in the National Landscape, having awarded over £1.1 million to farmers and land managers. The programme runs until March 2025 and due to over subscription in our area, we are no longer encouraging new enquiries for FiPL grants.
FiPL funding is for farmers and land managers carrying out one-off projects that support at least one of the following:
- Nature recovery
- Mitigate the impacts of climate change
- Provide opportunities for people to discover, enjoy and understand the landscape and cultural heritage
- Support nature-friendly, sustainable farm businesses
