We refer within this guide to the phrases ‘direct payments’ and the ‘Basic Payments Scheme' or 'BPS’.
These mean slightly different things, which is important to note when we refer to delinked and lump sum exit payments.
This is a form of support payment given to eligible farming businesses. In the main this is in the form of the Basic Payment Scheme (BPS) today. They were first introduced under the Common Agricultural Policy (CAP) in the mid-1990s to compensate farmers for reductions in the value of market price support that existed at the time, Arable Area Payments and Single Payment Scheme being earlier examples.
Basic Payment Scheme
This is currently the main delivery model for essentially direct payments in England. It is or has been made up of three elements:
- BPS payment entitlements
- Young Farmer Scheme.