Expert advises how farmers can prepare for new age of subsidies 

Understanding the funding issues facing British farms today requires a look back to mid-20th century Europe, Ms Ali said.

Established in 1957, the Common Agricultural Policy (CAP) influenced how governments subsidised British farms by promoting agricultural competitiveness, sustainability, and rural development. Although not intended as a direct food production subsidy, CAP’s extensive support effectively made it one, creating dependency on government funding.

This reliance became evident with the introduction of the Basic Payment Scheme (BPS) in 2015, which quickly became the largest rural payment scheme. Defra analysis showed that without BPS, 42% of farms were unprofitable, highlighting the industry’s dependence on direct payments.  

Ms Ali added that the UK’s departure from the EU ushered in a new era of policy, significantly impacting the farming sector.

Overwhelming options 

In England, policy around funding is now driven by the philosophy that public funding ought to supply public goods. This has led to Defra’s new environmentally-focused three-pronged approach, intended to replace the old funding strategy.  

Yet even a cursory look at the eligibility requirements for the new set of funding sources shows a focus on specificity of purpose, resulting in a significant difference in the potential for their application. 

In 2023, the final year of its application in England, 3.8 million hectares of farmland were managed with the help of BPS. Along with the Countryside and Environmental Stewardship Schemes, it completed more than 91,000 applications and claims. In contrast, 2024 figures show that there were just 55,000 farms benefitting from the new portfolio of funding schemes, a decrease of around 40%. 

Ms Ali said: “With such a widescale change in policy direction, many farmers will be looking for new means of sustaining their businesses. But navigating the different options available can be overwhelming, even for the most seasoned of farmers.  

“That’s why Tract works to simplify the process. We work to get more for your land, down to every last acre. Tract’s connections with a wide range of developers allow us to work with even the smallest parcels of land, ordinarily passed over.”

Generate a free report 

The expert explained that with Tract’s appraise tool, farmers can generate a free report outlining the planning restrictions on any site in England within seconds.  

A member of the Tract team follows up on every submission, personally evaluating lands more closely and reaching out to farmers to better understand their specific needs.  

“This allows us to make sure that any development opportunities we propose are genuinely tailored to fit both you and your land. 

“Diversifying with Tract could stabilise and supplement your existing agricultural income, allowing you to explore exciting new opportunities without changing the fundamental economics of your farm. 

“Unlike alternative methods of trying to make your farming business viable in the short term, such as cutting costs and continuously searching for new funding sources, diversifying via development could allow you to strengthen your farm for the long term. Unlocking the value of your land could land you a significant windfall or provide you with an ongoing alternative revenue stream,” Ms Ali added.

Strengthen your farming business 

When the government originally unveiled plans to replace BPS, it was announced that the phasing out would be complete by 2028, with ever-decreasing delinked payments applying from 2024 set to ease the transition.  

Yet change is taking place at a rate far faster than many initially anticipated. In 2025 already, just two years in, all recipients of delinked payments will see around three quarters of their base amount removed, the Tract expert explained. 

“Indeed, a large section of the industry has already begun to prepare for the future through diversification. 

“Figures provided by Defra in 2022 show that just over half of farmers earned income from diversified revenue streams beyond leasing buildings. Just a decade earlier, this was only around a third of farmers. With BPS set to be entirely phased out by 2028, this figure is likely to rise rapidly over the coming years. 

“Strengthening your farming business now could save you the future headache of keeping up with change,” Ms Ali concluded. 

Generate your report and start your diversification journey today with Tract. 

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