Basic Payment Scheme (BPS)

An agricultural subsidy scheme of direct payments to farmers established under the Common Agricultural Policy (CAP) governed by Regulation (EU) 1307/2013. Following the departure from the EU, the UK has ceased to participate in the CAP. The Agriculture Act 2020 (AA 2020) provides the legal framework for UK Agricultural policy in England and The Agriculture (Wales) Act 2023 (AWA 2023) provides a framework for Wales. The BPS payment is a single annual payment to a farmer who meets the scheme's criteria. Payment is based on the number and value of the farmer's payment entitlements. A farmer who is entitled to a BPS payment must comply with the cross compliance conditions

In England under the AA 2020, BPS has been replaced by delinked payments from 1 January 2024 until the end of the agricultural transition period, currently stated as end of 2027, and a new system of Environmental Land Management (ELM) . Cross compliance does not apply to delinked payments.

In Wales BPS remains but the AWA 2023 provides BPS will be replaced by Sustainable Land Management ("SLM"). The principal proposed delivery mechanism for SLM will be the Sustainable Farming Scheme (SFS). The Welsh Government intends to phase out BPS during a four-year transition period starting 1 April 2025 and running until 31 March 2029..

For more information on the BPS, see Practice note, Basic Payment Scheme.