Rural Hub

Updated impact assessment shows impact of changes to farm support

1 min

One in three farmers is yet to start to prepare for life without Basic Payments, according to a recent survey by Farmers Weekly for its new Transition initiative – a programme of content designed to help farming businesses secure a sustainable future, which Strutt & Parker and BNP Paribas Real Estate is supporting.

Strutt & Parker already has a number of tools to help farmers calculate the impact that reductions in Basic Payments will have on farm profitability.

We have also recently updated a paper, first produced in 2019, which models how the move away from BPS and the introduction of new Environmental Land Management (ELM) schemes will impact profits across seven different farm types, depending on whether a farm is in the top 25%, middle 50% or bottom 25% of performance.

The impact assessment shows that the net profits of the middle 50% of farmers could fall significantly, even if profits from Environmental Land Management (ELM) payments are double those generated under existing agri-environment schemes and assuming a 3% per annum rise in profits from farming and diversification.

This is why we believe farmers may be looking at “once-in-a-generation” decisions about the future direction of their businesses.

Download our paper: Farm Support, the New Environmental Land Management Schemes and the Funding Gap in England (August 21).

We have a calculator that enables us to run these assessments for any farm, so contact us if you would like to run figures for your farm through it free of charge. We are also here to help you evaluate your options and to put plans into action.

Jason Beedell
Director, Research
Head Office, London
+44 203 7970 598
Send a message to Jason Beedell
1 min

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