DEFRA’s Lump Sum Exit Scheme has proved to be most popular with smaller farms, fuelling fears about consolidation in the industry.
Figures from the Rural Payments Agency obtained by NFU Mutual as part of a freedom of information request show 2,706 farmers applied for the scheme, though 511 of those applications have been withdrawn or rejected.
Of the total number of applications, almost two-fifths (39 per cent) were made by farms of between five and 20 hectares.
A further 23 per cent came from farms between 20 and 50 hectares and 19 per cent from those between 50 and 100 hectares.
Gregor Belcher, farm specialist at NFU Mutual, said: “Applications for this scheme were more popular among smallholdings and smaller farms who have decided this is the right time for them to stop and step back from the industry.
“It has encouraged some to hand the family farm down to the next generation, which could bring further innovation and ideas into the industry.
“If Defra also push ahead with their proposed scheme for new entrants, this could complement the retirement scheme further, provided it helps break down barriers for young farmers.”
But Daniel Zeichner, Labour Shadow Farming Minister, told Farmers Guardian he warned small farmers would be most likely to quit when the scheme was proposed.
“We saw it as part of the general threat to the family farm from the Government’s policies,” he said.
“It is particularly disappointing that the Government established the exit scheme before coming forward with proposals to encourage and support new entrants.
“Consolidation is clearly the Conservative priority, but new lifeblood is needed, and this is a missed opportunity.”
Vicki Hird, head of sustainable farming at food and farming alliance Sustain, was equally concerned about the figures.
She said: “We just cannot afford to lose our small farms. Farm size diversity is essential. Smaller farms are vital to provide a ladder to new entrants and progression in farming, as well as rural cohesion, and they often have great assets like more field edges, trees and habitats for nature, landscapes and soil protection.
“Government must step in and stop this exodus, ensuring support schemes are designed specifically with small farmer businesses in mind.”
A Defra spokesperson said: “The Lump Sum Exit Scheme will free up land for new and existing farmers, alongside our upcoming new entrants scheme which will attract new talent into agriculture for the future."
