English farmers wishing to retire from the agricultural industry are being offered exit payments of up to £100,000 under a new Defra scheme.
The Lump Sum Exit Scheme, which was launched following industry consultation, is designed to help farmers who wish to retire or leave the industry but have found it difficult to do so for financial reasons.
It will open in April and applications will run until September, with farmers in receipt of an exit payment required to surrender their subsidy entitlements and either rent or sell their land, or surrender their tenancy, to create opportunities for new entrants and farmers wishing to expand their businesses.
Defra said the lump sum payment will be based on the average direct payments made to the farmer from the 2019 to 2021 Basic Payment Scheme years.
This reference figure will be capped at £42,500 and multiplied by 2.35 to calculate the lump sum, meaning some farmers could receive payments of up to £100,000.
“Those of us who grew up with farming know the emotional connection farmers have with their land and the decision to retire or to exit the industry can be extremely difficult and is frequently postponed,” said Environment Secretary George Eustice, announcing details of the new scheme.
“The purpose of The Lump Sum Exit Scheme is to assist farmers who want to exit the industry to do so in a planned way and provide them with the means to make a meaningful choice about their future.
“The scheme will also free up land for new entrants to farming and those who want to expand their businesses.”
He said the Government had also been working in partnership with industry, local councils and landowners to design a new entrants scheme to “create real opportunities” for new farmers.