Wednesday, 03 September 2025

DAERA Begins £250m Payment Scheme for Northern Ireland Farmers

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DAERA has begun issuing £250 million in payments to Northern Ireland farmers under the Farm Sustainability Transition Payment, Young Farmer Payment, and Protein Crop Scheme. This marks the first major rollout of support under the new Sustainable Agriculture Programme, with 98% of eligible businesses receiving payments on the first day.

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DAERA Begins £250 Million Payment Rollout to NI Farmers Under New Sustainability Programme

The Department of Agriculture, Environment and Rural Affairs (DAERA) has begun issuing approximately £250 million in payments to farm businesses across Northern Ireland. These payments are part of the Farm Sustainability Transition Payment (FSTP), along with the Young Farmer Payment and the Protein Crop Scheme, and represent the first major financial support under the new Sustainable Agriculture Programme (SAP).

What Is the Sustainable Agriculture Programme (SAP)?

The Sustainable Agriculture Programme (SAP) is a major shift in how agricultural policy is being delivered in Northern Ireland post-Brexit. Replacing the EU’s Common Agricultural Policy (CAP), SAP aims to integrate economic resilience with environmental responsibility. Unlike CAP, which was largely area-based, SAP introduces payments that are more outcome-driven, focusing on climate action, biodiversity, and soil health.

This new model reflects global trends toward agri-environmental reform, positioning Northern Ireland as a potential leader in farm-level sustainability.

A Key Step in Sustainable Agriculture

The FSTP serves as a transitional support scheme as Northern Ireland shifts toward a more sustainable farming model under SAP. The aim is to help farmers adjust as new environmental, climate, and economic practices are introduced in line with updated agricultural policy.

Minister for Agriculture, Environment and Rural Affairs, Andrew Muir, confirmed the commencement of payments on Monday, September 1st, stating:

“I am pleased that payments have commenced as we transition towards the new SAP. Over £242.4 million has been paid out to 98% of eligible businesses on the first day.”

He also emphasised the unique position of Northern Ireland in retaining secure funding for agriculture:

“Northern Ireland is the only region of the UK where funding for agriculture, agri-environment, fisheries and rural development is ringfenced, and I am proud to have secured that certainty for the farming sector.”

Why the Transition Matters: From Direct Payments to Environmental Outcomes

Historically, most farming subsidies in the UK and EU were direct income supports based on land ownership or historical entitlements. However, this approach often did not incentivise sustainability or efficient land use.

By moving toward programmes like SAP and the FSTP, DAERA is prioritising results-based payments, where farmers are rewarded not just for farming, but for how they farm, specifically practices that support:

  • Carbon sequestration

  • Water quality improvement

  • Pollinator habitats

  • Nutrient management

This signals a shift in how public money is spent: from supporting production volume to supporting public goods like clean water, biodiversity, and climate resilience.

What Schemes Are Included?

The current payments cover several key schemes under SAP:

  • Farm Sustainability Transition Payment (FSTP): Designed to bridge the gap between previous support schemes and the upcoming long-term Farm Sustainability Payment.

  • Young Farmer Payment: Financial support for eligible young entrants into farming.

  • Protein Crop Scheme: Payments to encourage the domestic production of protein crops as part of sustainable land use.

These schemes reflect DAERA’s strategy to support environmentally responsible and economically viable farming in Northern Ireland.

What Farmers Need to Know

DAERA has advised that payments will continue to be issued as remaining applications are validated. Farm businesses should:

  • Ensure their contact and bank details are up to date to avoid any delays in receiving payments.

  • Monitor the DAERA messaging service, which will notify scheme applicants when new payment messages are available.

  • Note that paper letters will be sent to businesses whose applications were submitted by an agent.

Farmers are encouraged to check their DAERA online account regularly to stay informed of updates.

Looking Ahead: Future of the SAP

Minister Muir also noted that this is just the beginning of a broader rollout of sustainability schemes:

“Over the next couple of years, I look forward to upscaling schemes within SAP and ensuring farmers can avail of a range of support programmes, including the Farming with Nature Package.”

The SAP forms a central part of Northern Ireland’s agricultural policy going forward, aiming to balance productivity with environmental stewardship, ensure economic resilience, and maintain socially significant rural development.

Conclusion

The rollout of £250 million in payments marks a major milestone in Northern Ireland’s agricultural transition. With 98% of eligible businesses receiving support on the first day, DAERA’s new Sustainable Agriculture Programme is off to a strong start. As more schemes are introduced under SAP, farmers are positioned to play a key role in shaping a more climate-conscious, productive, and resilient future for Northern Irish agriculture.

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