Lots of change due to happen in 2026

Since the EU referendum in 2016, there has been a lot of effort put into designing new farm payments best suited to NI.

However, while two new beef schemes have recently emerged, not much else has changed – the direct farm payment received by most farmers in September came with similar rules that predated our exit from the EU.

That situation is due to alter quite significantly in 2026, with DAERA planning to introduce a host of new conditions and requirements relating to farm payments.

A new area-based Farm Sustainability Payment (FSP) is due next year along with new Farm Sustainability Standards to replace cross compliance.

This payment is being targeted at active farmers, so those without relevant agricultural activity in 2020 and/or 2021 are to be excluded – around 2,000 farm businesses are expected to miss out.

There are also proposals to introduce a progressive cap on the FSP, starting at £60,000, although the actual details around this are yet to be fully confirmed.

Land

Clarity is also required around new land eligibility rules due to come into force in 2026.

Following a switch to area based payments in 2005, the rules around eligible land were gradually tightened at the behest of the EU Commission, leading to rushes, scrub, rock and some areas of trees all being marked off maps. These areas are all due to be eligible to claim payments in 2026, although DAERA guidance currently states the land must be “used for agricultural activity on a significant and consistent basis during the year”.

Conditions

The final major change in 2026 are the plans to put various conditions on the new FSP. To get the full payment, farmers will have to take part in the soil nutrient health scheme and the bovine genetics project (if cattle are kept). A third condition was to be participation in a carbon footprinting project, although that project has been delayed.

Something that isn’t totally clear, is to what extent DAERA will cut the FSP of an individual farmer if they decide not to fully participate in one or all of these schemes.