Basic Payment Scheme 2022
In preparation for the 2022 Basic Payment Scheme, the window for transferring entitlements is now open until the 16th May. This is going to be a busy period for agriculture as we are expecting more details imminently regarding the Sustainable Farming Incentive which will be an opportunity for farmers to replace some of the reduction in their BPS payment. Furthermore the usual offerings of Capital Grants and Countryside Stewardship will be available in the coming months. A welcome increase in payment rates for some land management options within Countryside Stewardship will make this scheme more attractive for both arable and grassland farmers. However there will be no increase in the payment rates for Capital Grant items, this is disappointing when considering the increase in the cost of some materials.
On a slightly different note HMRC published guidance in December 2021 on the Plastic Packaging Tax (PPT), which stated that silage wrap would now be liable for PPT. However following feedback from industry groups and a debate in Parliament on the 18th January, that guidance has now been updated to include plastic film used to “enable the fermentation process to make silage” in the list of exempt plastics. The wrap will therefore not be liable to pay tax from the 1st April 2022. This is welcome news for any farmer using plastic for wrapping bales.
If you require any further advice on the above please do not hesitate to contact Alan Falshaw, Farm Business Consultant 07425 186127 or by e-mail afalshaw@vickersandbarrass.co.uk
