With the BPS set for extinction between now and 2028, farmers can make use of a free service to help their businesses navigate the Brexit transition, says James Dunn, technical director for business development at ADAS.
With the Agriculture Bill still navigating its way through the House of Lords and the country still battling with the impact of Covid 19, one thing which remains certain is that, in the words of Noel Edmonds, ‘Deal or No Deal’, we will be trading as UK PLC on December 31 2020.
What transpires in terms of global and EU trade deals, agricultural commodity trading conditions and the prospects of environmental stewardship and new schemes such as the Environmental Land Management (ELM) scheme and the recently announced Sustainable Farming Incentive (SFI) is largely unknown.
However, the Basic Payment Scheme (BPS) appears set for extinction on a sliding scale between now and 2028.
With so much uncertainity, we need to focus on what we can control.
In the case of BPS, being forewarned is forearmed should always be the mantra for any farming business.
There are many changes that will impact farming businesses over the next few years, but rather than focus on the challenges, it is a far more worthwhile exercise to recognise the opportunities.
With every farming business this should start with an interrogation of your own business and how it is performing.
Making changes within your own sphere of influence should be the starting point.
This can be done by answering a few simple questions:
If you would like assistance with getting started on this journey, ADAS have developed a free service using our financial data analysis tool that allows for current financial performance and profitability to be plotted against a backdrop of declining BPS payments.
It will allow farmers to determine the financial gap that they need to fill, and the decisions they need to make, come 2028.
Farmers will need to submit the last 3 years of farming accounts data and, in return, ADAS will provide you with a profit requirement and BPS profit impact report and a free visit (Covid-19 permitting) to discuss your results.
James can be found tweeting at @jim_1709