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Delinked Payments in England: A Practical Farmer's Guide | LegalDocuments.co.uk

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Part ofFarming and Agricultural Law in the UK

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you farm in England, the way direct support reaches your bank account is changing fast. The Basic Payment Scheme is being wound down, and in its place sits something quite different: delinked payments. As the name suggests, these payments are no longer tied to the land you farm or the entitlements you hold. Instead, they are calculated from your historical participation in BPS during a set reference period, then tapered down each year until the scheme ends. For many farm businesses, this shift raises practical questions about eligibility, how reference amounts are worked out, whether payments can be transferred to another business, and how to plan for the eventual end of direct support. This guide walks through the essentials so you can make informed choices about your own farm.

Overview

Delinked payments are a transitional form of direct financial support for farmers in England, introduced to replace the Basic Payment Scheme as it is phased out by the end of 2027. The key word is 'delinked'. Where BPS required you to hold entitlements and farm eligible land, delinked payments cut that connection entirely.

You do not need to be actively farming land on a given date to receive them, and you do not need to hold entitlements. Your payment is worked out from a reference amount based on the BPS payments you received during the 2020 to 2022 scheme years.

Each year between now and the end of 2027, the government applies a progressive reduction to those reference amounts, so the sums paid out taper steadily. The Rural Payments Agency administers the scheme and will issue information statements confirming your reference amount.

Delinked payments sit alongside environmental schemes such as Countryside Stewardship and the Sustainable Farming Incentive, meaning you can continue to draw delinked support while participating in land management agreements that reward specific environmental outcomes.

Key steps

  1. Confirm your BPS 2023 position. Your eligibility for delinked payments hinges on having claimed under BPS during the reference period and, crucially, under BPS 2023. If you missed the 2023 application window or had penalties applied, this may affect whether you qualify, so check your RPA correspondence carefully and raise any queries promptly.
  2. Check your reference amount statement from the RPA. The Rural Payments Agency issues an information statement setting out the reference amount used to calculate your delinked payments. Read it line by line against your own BPS records for the 2020, 2021 and 2022 scheme years. Flag any discrepancies in claimed area, deductions, or payment figures as soon as possible.
  3. Decide whether to transfer your reference amount. There is a defined transfer window during which you can move all or part of your reference amount to one or more other business identifiers. This flexibility can help with mergers, restructures, partnership changes, succession arrangements, or situations where the farming entity on paper has changed since the reference years.
  4. Plan for the taper and the 2027 endpoint. Delinked payments reduce progressively each year and stop entirely at the end of the 2027 scheme year. Build this taper into your cash flow forecasts, review diversification options, and consider how environmental schemes, capital grants, or off-farm income might fill the gap as direct support falls away.
  5. Access free resilience support while you can. Farmers receiving direct payments can tap into free business advice through the Future Farming Resilience Fund. The providers involved vary by region, but the sessions can help you stress-test your business model, review enterprise profitability, and think through what the post-BPS world looks like for your farm.

Common questions

If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Common questions

Q Do I need to farm land to receive delinked payments?
No. One of the defining features of delinked payments is that they are not tied to land occupation or entitlements. Your payment is calculated from your historical BPS claims during the reference period rather than from the area you currently farm. This means you can in principle receive delinked payments even if your farming activity has scaled back, although you should check the specific eligibility rules on gov.uk.
Q How is my reference amount calculated?
The reference amount is based on the BPS payments you received during the 2020 to 2022 scheme years, averaged and adjusted according to the scheme rules. The Rural Payments Agency handles the calculation and sends each eligible business an information statement confirming the figure. If you believe the amount looks wrong, you can query it with the RPA and provide supporting evidence from your own records.
Q Can I transfer my reference amount to another farm business?
Yes. There is a transfer window during which you can move all or part of your reference amount to one or more other businesses, each identified by its own Single Business Identifier. This option is often useful for mergers, partnership changes, or succession planning where the trading entity has altered. Both the transferor and transferee need to meet the scheme requirements for the transfer to take effect.
Q When will delinked payments stop?
Delinked payments are a transitional measure and will end after the 2027 scheme year. Between now and then, reference amounts are subject to progressive reductions, meaning the sum paid each year gets smaller. This tapering timetable is designed to give farm businesses time to adjust, explore alternative income sources, and engage with environmental land management schemes before direct support disappears.
Q Can I claim delinked payments and environmental scheme payments at the same time?
Yes. Delinked payments are intended to sit alongside schemes such as Countryside Stewardship and the Sustainable Farming Incentive. You can continue farming, receive your delinked payments, and hold active agreements under environmental land management initiatives simultaneously. For many farms, combining delinked support with scheme payments is central to managing the income transition as direct payments wind down.
Q What happens if my business structure changes after the reference period?
Business changes such as partnership reshuffles, incorporation, or succession can affect how delinked payments flow. The transfer mechanism exists precisely to handle these situations, allowing reference amounts to move to the new trading entity. You should plan any restructuring with the transfer window in mind and keep the RPA informed about changes to your Single Business Identifier.
Q Is there free support available to help me adapt?
Yes. Farmers in receipt of direct payments can access free business advice through the Future Farming Resilience Fund, delivered by a range of approved providers. The advice typically covers enterprise reviews, cash flow planning, and identifying opportunities in environmental schemes or diversification. Availability and providers vary, so check gov.uk for the current list of organisations offering support in your area.
If you're dealing with this kind of situation, a call with an experienced legal adviser can help you work out the right next step — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.