Application Deadline for the BPS Lump Sum Exit Scheme is Approaching

Application Deadline for the BPS Lump Sum Exit Scheme is Approaching

The application window for the Lump Sum Exit Scheme closes on 30 September 2022.

Last year, as part of the Agricultural Transition programme, Defra consulted on the administration of direct payments and a lump sum exit payment for farmers who may be looking to leave the industry. The intention behind the lump sum scheme is to make it easier for farmers who wish to retire or leave the industry to do so, thereby freeing up land for new entrants or existing farmers keen to expand their enterprises. The scheme is a one-off opportunity to receive a lump sum payment based on remaining Basic Payment Scheme (BPS) claims in return for leaving farming.

The key condition is that the recipient of the payment has to surrender all of their BPS entitlements and cease farming the associated land. Other than the ability to retain up to 5 hectares, all agricultural land needs to be given up by way of sale, gift or tenancies. If you farm under a tenancy, this will need to be surrendered or assigned to be eligible for the lump sum.

Lump sum payments will be made from November 2022 for those that have already exited by then. Otherwise, applicants will have until 31 May 2024 to submit and finalise their claim. Under the scheme, once a lump sum payment is made, you will no longer be eligible for BPS payments or delinked payments (which will begin in 2024) in England. If you are a farmer considering retirement and the future of your business, please get in touch with a member of our Agricultural and Rural team. We can advise on agricultural property and succession planning and will work with your accountant and land agent to ensure the best possible outcomes for you as an individual or partnership.

To find out more information, and how to apply for the BPS scheme visit: Apply for a lump sum payment to leave or retire from farming – GOV.UK (

As an Associate Solicitor, Kate Wilson is an experienced member of the agricultural and rural property team at Tinsdills. Kate specialises in all aspects of commercial and agricultural property work, from farm and land sales and purchases, to agricultural tenancies and licences, residential and commercial development to options and conditional agreements plus everything in between.

To find out how Kate and the team can assist you, get in touch today.