The BPS entitlement value for 2021 is £116.86 which appears to be around 4% (£5.30) less than the combined total of the BPS and greening payment values for 2020 which was £122.16.
Following previous assurances that the BPS budget for 2021 would provide the same level of direct payments to farmers in 2021, as was provided in 2020, the FUW requested clarification from RPW as to why the entitlement value is lower than expected.
In response, RPW has clarified that "In previous years the Greening payment allocated to each eligible claimant was calculated based on the activated entitlements in a particular scheme year. For 2021 the previous Greening budget has been incorporated in full into the BPS entitlement budget, however, the value of the Greening budget has currently been distributed across all entitlements held in our register and not just those that have been activated.”
“Prior to making BPS 2021 payments we will take account of all the entitlements held that are not claimed, together with the value of unclaimed National Reserve and will increase the value of the entitlements activated. BPS 2021 claimants will then see their entitlement value increase and a BPS payment in line with what was received for 2020."
These figures do not include the redistributive payment which is paid on the first 54 hectares of any claim.
We understand that the issue of Glastir contract extensions has been included in a policy proposals paper which is currently under consideration by the Minister for Rural Affairs, North Wales and Trefnydd Lesley Griffiths in relation to a domestically funded Rural Development Plan for Wales.
The FUW has emphasised the need for an urgent decision to be made due to farmers needing to plan ahead and to ensure that contract extensions can be issued in a timely manner if they are granted.
The policy paper also contains proposals for future rounds of other grant schemes including the Sustainable Production Grant (SPG) , Farm Business Grant (FBG) Yard Coverings and Glastir Small Grants.
The FUW has also written to the Minister highlighting the issue of rising costs of building materials and the impact this is having on standard cost and fixed prices as part of FBG Yard Coverings, SPG and Glastir Small Grant contracts.