Defra clarifies capital grant payment rate implications for ELMs

Following the reviewed payment rates announced by the Farming Minister, Mark Spencer, at the Oxford Farming Conference, this week Defra clarified how the reviewed rates would apply to capital grants.

This includes capital only grants, Countryside Stewardship Mid-Tier and Higher Tier agreements, and Sustainable Farming Pilot agreements with capital elements. The vast majority of funded items have benefitted from increased payment rates, some have had their payment rates reduced, whilst a small number have kept the same rate.

The implementation date for the revised capital grant rates is the 1st January 2023. This means that those with agreements which began on this date will benefit from the increased payment rates, and where the payment rates have been reduced, they will benefit from the previous higher rate.

Those with new agreements started from 1st January 2023 onwards will receive the new payment rates (both the increases and decreases). For agreements which began before this date, there will be no change, and the previous rates will apply.

The RPA will be sending letters out to impacted customers shortly.