He said: “With the rollout of the first domestic agricultural policy for more than 40 years currently taking place, farmers across the country will be making difficult decisions about the future of their farm business.
“For those thinking of leaving the industry, the clarity provided by the government today is incredibly important. Every farming business is unique, with personal circumstances, land tenure and enterprises varying massively, so it’s positive that Defra is understanding of this.
“Farming is a job like no other and deciding to leave the industry will be deeply subjective to each person. I would encourage anyone considering this to take advantage of the free and confidential business advice being funded by Defra.
“Practically, it is good news that Defra and HMRC will treat the lump sum as a capital payment. This will ensure more of the payment is retained by the retiring farmer, which is reflective of the nature of the scheme.
“The NFU will continue to analyse the detail of today’s announcement and how the implementation will work for any interested farmers, but particularly those with more complex situations such as tenant farmers. We will also continue working with Defra on the crucial New Entrants Scheme which we hope will provide a pipeline for new talent to enter the industry.”