Understanding the Farm Sustainability Transition Regulations in Northern Ireland

The Northern Ireland Department of Agriculture, Environment and Rural Affairs (DAERA) has introduced the Farm Sustainability (Transitional Provisions) Regulations 2025, a significant step in reshaping farm support mechanisms post-Brexit. Here's what you need to know about the changes coming to farm payments and support programs:

Farm Sustainability Transition Payment (FSTP) Introduction The new regulation introduces the Farm Sustainability Transition Payment (FSTP), which will replace the Basic Payment Scheme (BPS) in 2025. The FSTP is designed to provide a financial safety net for farm businesses and ensure a smooth transition to the new Farm Sustainability Payment (FSP) set to commence in 2026.

Eligibility Criteria and Application Details The FSTP is expected to receive around 24,000 applications in 2025. To ensure that FSP targets active agricultural businesses, the regulation stipulates eligibility based on specific production levels during 2020 and 2021. However, new farm businesses established post-2021 are exempt from this requirement.

Entitlements and Leasing Farmers not eligible for FSP can transfer their entitlements before the closing of the 2026 trading window on May 15, 2026. New rules limit entitlement leases to one year to prevent businesses from benefitting from payments they're no longer eligible for. Long-term leases agreed before January 1, 2025, will remain valid until their expiration, provided the lessor remains eligible for FSP.

Active Farmer Definition Reinstatement To clarify eligibility, the regulation reinstates the "active farmer" definition, which requires individuals to have decision-making power, financial risk, and benefits linked to agricultural activities.

Hemp Cultivation Regulations The regulation continues to permit land with certain categories of hemp to be eligible for FSTP and FSP, although a license and original seed labels are mandatory, without the need for sampling controls.

Changes to Legislative Framework The regulation updates references from BPS to FSTP and FSP for 2025 and 2026 onwards. It also allows DAERA to set payment ceilings annually and make additional payments if necessary.

Young Farmers and Generational Renewal 2025 marks the final year for new applications to the Young Farmers' Payment (YFP), with successful applicants receiving a five-year top-up. The new Farming for the Generations Scheme aims to support generational renewal more holistically, ensuring the long-term sustainability of farm businesses.

Consultation and Stakeholder Engagement The regulations are the result of extensive consultations with stakeholders, including the Agricultural Policy Stakeholder Group, which helped shape the future of farm support in Northern Ireland.

Equality and Regulatory Impact The regulation's impact on equality and rural needs has been assessed, with measures in place to mitigate any adverse effects on older and younger farmers. The FSTP/FSP is designed to support farms most vulnerable to external shocks without adding administrative burdens.

In summary, the Farm Sustainability (Transitional Provisions) Regulations 2025 represent a transformative approach to farm support in Northern Ireland, aiming to modernize and tailor financial assistance to meet the evolving needs of the agricultural sector. For further details, you can contact George Moffett at DAERA.