Calendar (planned, date-driven)

Delinked payments cut to 98% in 2026: what farmers receive and when payments end

Delinked payments for 2026 are subject to a 98% progressive reduction, meaning most farmers will receive a fraction of their original BPS entitlement. Payments are made as a single lump sum from August 2026. The final delinked payment will be in 2027, after which direct farm subsidies end entirely.

Change event: Delinked payments: 98% reduction from August 2026 as BPS phase-out nears end Effective 1 August 2026

What is changing

The Agriculture (Delinked Payments) (Reductions) (England) Regulations 2025 (SI 2025/568) set the progressive reduction for delinked payments in 2026 at 98%. This is a sharp increase from the 76% reduction applied in 2025.

Delinked payments replaced the Basic Payment Scheme (BPS) in January 2024 as part of the seven-year agricultural transition under the Agriculture Act 2020, section 11. Unlike BPS, delinked payments require no land management conditions and no annual application — they are paid automatically based on your reference amount.

2027 will be the final year of delinked payments. After that, direct farm subsidies from the former BPS system end entirely.

2026 reduction rate (first £30,000)
98% — maximum payment is £600
2026 reduction rate (above £30,000)
100% — no payment on amounts above £30,000
2025 reduction rate (for comparison)
76%
Payment date
Single lump sum from 1 August 2026
Final payment year
2027 (same 98%/100% reduction rates)
Administering body
Rural Payments Agency (RPA)

How the progressive reduction works

The reduction is applied progressively based on your reference amount (calculated from your historical BPS payments):

  • First £30,000 of reference amount: Reduced by 98%. If your reference amount is £30,000, you receive £600.
  • Any amount above £30,000: Reduced by 100%. You receive nothing on the portion above £30,000.

For example, a farmer with a £50,000 reference amount receives £600 on the first £30,000 (98% reduction) and £0 on the remaining £20,000 (100% reduction) — a total payment of £600.

This compares to the same farmer receiving approximately £7,200 in 2025 under the 76% reduction rate.

The transition timeline

The agricultural transition from EU-style area-based subsidies to payments for environmental outcomes has been running since 2021:

  • 2021–2023: BPS payments with progressive reductions (5–35%)
  • January 2024: BPS replaced by delinked payments — no land management conditions required
  • 2025: 76% reduction applied
  • 2026: 98% reduction — payments effectively negligible for most farms
  • 2027: Final year of delinked payments at 98%/100% reduction
  • 2028 onwards: No further direct payments from the former BPS system

⚠️ Income impact for farms

For a farm that received £30,000 under the original BPS, the 2026 delinked payment is just £600. Farms that previously relied on BPS as a significant portion of their income must have alternative revenue streams in place. The Rural Payments Agency does not require any action to receive the payment — it is made automatically — but the amount will be substantially lower than in previous years.

ℹ️ England only

Delinked payments apply only in England. Scotland, Wales, and Northern Ireland have separate agricultural support arrangements. Scottish farmers should check with the Scottish Government's Rural Payments and Services. Welsh farmers should check with the Rural Payments Wales service.

❗ What you need to do

Delinked payments require no application — they are paid automatically. However, you should:

  • Check your reference amount with the Rural Payments Agency if you are unsure what you will receive
  • Plan for significantly reduced income from August 2026 — budget on the basis of receiving very little from delinked payments
  • Apply for environmental land management schemes (SFI reopens June 2026, Countryside Stewardship is open now) to replace lost BPS income
  • Consider capital grants for productivity improvements that can increase farm revenue independently of subsidy payments
  • Review your overall farm business plan — the end of direct subsidies in 2028 requires a sustainable business model without BPS income

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