News Retirement scheme for farmers –


good for some but not others • Lump sum offered to quit farming


• Scheme is aimed at older farmers


• More needed to woo new entrants


A


long-awaited government scheme to encourage older farmers to leave the industry could be attractive for some produc- ers, say industry leaders.


But it will not be the answer for everyone – and more details are need- ed about how the scheme will work. Younger farmers say it is only half the equation – and new entrants must be encouraged into agriculture. The proposals will see older farmers offered a lump sum payment to help them retire or leave the industry in managed way. The lump sum would be about 2.35 times the recipient’s ex- isting annual basic payment – up to a maximum of £100,000.


“


We need to help an older generation retire with dignity


Defra secretary George Eustice


said: “We need to address the twin chal- lenges of helping new entrants fulfil their dream and gain access to land, while also helping an older generation retire with dignity.” The exit scheme would offer farm-


ers wanting to leave the industry a real incentive to confront what was often a difficult decision, said Mr Eustice. It would help them them clear bills and settle debts, he added.


Opportunities


By renting out their farm or surrender- ing their tenancy, those exiting the in- dustry would create opportunities for the next generation of farmers. Gov- ernment plans to encourage this will


4 ANGLIA FARMER • JUNE 2021


be published later this year. The Tenant Farmers Associa- tion said farmers who might find the scheme attractive included smaller owner occupiers who were reaching the end of their career without succes- sors. They could can retain ownership of their land but rent it out. Tenant farmers in a position to dis-


cuss tenancy surrender and a compen- sation package with their landlords could also benefit. So too could tenants with suitable successors waiting in the wings to take over their farms. TFA chief executive George Dunn,


said: “As part of a portfolio, which might include a surrender payment from a landlord for a secure tenancy, sale of livestock and equipment and other pension provision, it could be a very useful catalyst.”


Generational change The scheme seeks to offer a fairer sys- tem for farmers, encouraging genera- tional change by providing more flexi- bility for new entrants to start up their farm businesses and supporting those ready to leave the sector to do so on their own terms.


But Country Land and Business Association president Mark Bridge- man said: “The consultation does give much-needed information on the exit scheme. But for those considering the scheme, there are still many questions to be answered. “The scheme will not be for every-


one, but if the scheme is to contribute to industry restructuring and create op-


How to have your say


A government consultation on the new scheme is open for 12 weeks. It is seeking responses from farmers on two key areas:


Lump sum exit scheme The government proposes to offer farmers, who would like to retire or leave the industry, a lump sum payment to help them do this in a planned and managed way.


Delinked payments The government plans to phase out direct payments over seven years. The consultation


includes plans to separate payments from the amount of land farmed from 2024.


The government says it will also encourage farmers to take up the forthcoming environmental land management schemes. Due to be fully launched in 2024, they will reward sustainable food production and environmental work.


The consultation will close for responses on 11 August 2021. For full details and to respond, pleasevisit www.bit.ly/defrascheme


George Eustice says he wants a younger and more vibrant agricultural industry


portunities for new entrants and those wishing to expand, there are some crit- ical issues to be addressed.” These included clarity on tax treat- ment of lump sums payments, and the eligibility and exit conditions. “The big- gest challenge is the timing, and there can be no further delays in launching the scheme later this year.”


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