Welsh BPS Entitlements User Guide
How do I claim BPS payments in Wales?
To be eligible to claim payment under the Basic Payment Scheme a Welsh claimant must:
- Qualify as an “Active Farmer” (see below for details on this classification);
- Have at least 5ha of eligible agricultural land;
- Hold enough entitlements to match the eligible land they wish to claim on;
- Be carrying out ‘agricultural activity’ on the land they wish to claim on;
- Have the land at their disposal on the 15th of May in the year they wish to make a claim (or the next working day if this is a weekend);
- Submit an online Single Application Form (SAF) by the 15th of May deadline (or the next working day if this is a weekend) Please note this deadline is extended to 15th June for 2020, due to COVID-19;
- Must meet Cross Compliance rules on whole holding for the whole scheme year.
What needs to be done to qualify for the Greening Payment?
To be eligible for the Greening Payment (approximately 30% of the total payment), a claimant must comply with the greening rules, which are summarised as follows:
- Farmers with 10 or more hectares of arable land (i.e. land cultivated for crop production, fallow land or temporary grassland) need to follow the crop diversification Greening rules.
- Farmers with more than 15 hectares of arable land must follow the crop diversification and the Ecological Focus Area (EFA) Greening rules.
- Farmers with less than 10 hectares of arable land don’t need to do anything differently – they are exempt from the crop diversification and EFA area rules.
- Farmers with permanent grassland must follow the permanent grassland Greening rules.
BPS Payment Rates
From 2019, all entitlements in Wales will be paid the same flat rate. The payment rate in 2019 was €125.65/ha, with an additional redistributive payment €103.24/ha on the first 54ha.
Until this point, each payment made on each entitlement will be composed of an element of the historic value and element of the flat rate value, with the proportion of flat rate payment gradually increasing until it makes up the whole payment.
Buying and selling entitlements and the National Reserve
All online transfer applications must be submitted using the RPW online system by the 30th April each year in order for the Transferee to claim on those entitlements in that year. Please note this deadline is extended to 15th May for 2020, due to COVID-19
In order to claim BPS payments, a potential claimant must first acquire the appropriate entitlements for the land they wish to claim upon. Those that meet the criteria for the New Entrant and Young Farmer schemes are eligible to receive entitlements from the National Reserve. Those that do not meet the requirements for allocation of entitlements under these schemes must purchase entitlements privately. For more information on the entitlement trading market and for current prices and availability, please contact Alasdair Squires (email).
Receiving entitlements from the National Reserve
New farmers must be at least 18 years of age, must be in ‘control’ (have more than 50% of the shares and votes) of the farm business, their business must have started ‘agricultural activity’ in 2013 or later and they must not have carried out any farming in the previous 5 years in their own right.
New farmers must make their first successful BPS application within 2 years of the calendar year in which the business started farming.
Young farmers must be between the age of 18 and 40, must be in ‘control’ of the farm business and must have set up or taken ‘control’ of the business for the first time less than 5 years before the scheme year in which they first applied for BPS payments.
In order to prove one’s status as a ‘new’ or ‘young’ farmer evidence of the above must be received by RPW no later than the 15th May (this may be extended to 15th June in 2020 – TBC).
How do I buy entitlements?
How do I sell entitlements?
Qualifying as an “Active Farmer”
The recipient of entitlements transferred by sale or lease must be a farmer and meet the Active Farmer requirements at the time of transfer. The Active Farmer requirement does not apply to entitlements transferred via inheritance. If the recipient met the definition of a farmer and met Active Farmer requirements for the 2018 scheme year, the Welsh Government will consider that the requirements were met on the date the transfer took place in order to process the transfer. If the recipient’s circumstances in relation to the Active Farmer requirement have changed since submitting the SAF 2019, they should notify the Welsh Government in writing of the change. Checks will be carried out on the recipient’s 2020 SAF to ensure they continue to meet the definition of a farmer and the Active Farmer requirements. If the recipient did not submit a SAF 2019 or failed the definition of a farmer or Active Farmer requirements, as part of the validation process of the transfer of entitlements they will be sent an Active Farmer proforma. In the event of the recipient of the entitlements (transferred as a Sale or Lease) not meeting the Active Farmer requirements then the transfer will not be valid. The entitlements will return to the seller/lessor and it is their responsibility to ensure that they meet the relevant usage requirements for those entitlements or they will transfer to the National Reserve.
Please click here for more detailed information provided by the Welsh Government.