The BPS Support Scheme 2020 is an opt-in loan scheme to help farmers who may not receive their Basic Payment Scheme payment on the 1st December.
The loan, which is interest free, makes up 90% of the expected value of the BPS payment. Where the loan received is higher than the actual BPS payment for example due to penalties being applied, the farmer will have to repay the ‘difference’ plus interest. However, interest will not be charged if the ‘difference’ is paid back before the 8th March 2021. It is therefore important to understand the terms and conditions set out in the scheme rules booklet.
The application is a simple process which is undertaken on the claimant’s online account. The application window is open until the 27th November.
The payment date of the loan will be the 10th December. There is no payback of the loan required, it is deducted from the total 2020 BPS payment where the claimant will then receive the balance of 10% once the SAF has been validated.
Farmer’s are encouraged by the Welsh Government to consider applying for the loan and with the uncertainty surrounding Brexit and significant business pressures due to COVID-19 it may well be a useful tool to manage cashflow.
Baileys and Partners would be pleased to answer any queries you may have on the BPS Support Scheme. Please do not hesitate to give Tudur a call or alternatively contact your local Rural Payments Wales office on 0300 062 5004.