Farm Subsidies

The Common Agricultural Policy (CAP) reforms agreed for the 2014-2020 period introduced new farm subsidy rules and payments from 1 January 2015.

Each UK country operates a different subsidy scheme.

For England, the Rural Payment Agency administers the Basic Payment Scheme.

Claimants of the Basic Payment must show cross compliance with environmental, food safety, animal and plant health and animal welfare standards.

Farmers apply for the Basic Payment Scheme by completing a single application form. This is submitted by 15 May each year, along with details of the land they use. Farmers can request payment in euros or sterling when they complete their form.

Entitlements are the basis for payments under the Basic Payment Scheme. An entitlement is a right to a payment, provided it is supported by a hectare of eligible land. Entitlements can be traded on the open market. UK entitlements have been allocated across the four countries of the UK. Entitlements allocated within one payment area can only be used and transferred within that payment area.

For Wales, the Welsh Government administers the Basic Payment Scheme.

For Scotland, the Scottish Government administers the Basic Payment Scheme.

For Northern Ireland, the Department of Agriculture and Rural Development Northern Ireland administers the Area-Based Scheme.

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