THE Government has announced plans to introduce a “retirement scheme” as part of its proposed reforms to agricultural support in England,in a bid to breathe new life into the North-East farming industry, .

Farmers currently receive direct payments under the Basic Payment Scheme (BPS) which are paid on a flat rate per acre basis. However, this will be phased out by 2027 and replaced by a number of schemes designed to encourage more environmentally-friendly farming.

The proposed retirement scheme would give participating farmers in the region a lump sum payment in 2022, amounting to roughly the same amount they would have received through BPS between 2022 and 2027.

“In a post-Brexit world, the Government’s intention is to help to modernise the agricultural industry to increase productivity through technological advancement and modernisation, whilst encouraging succession planning and retirement to ensure that younger ‘progressive’ farmers in the North-East are in occupation and control of the land,” Carter Jonas partner James Bradley said.

“The average age of farmers is around 60 and a major hurdle to succession planning is a lack of retirement provision and housing, particularly for tenant farmers.

“This is an all-or-nothing scheme with a commitment to leave the industry, preventing partial or phased retirement.

“The principle behind this is right, providing the farmer receives an adequate net sum. Sole traders in the North- East who are approaching retirement age and should be considering their future and making succession plans stand to benefit the most.”