The Basic Payment Scheme (Tapering, Payment Entitlements and Closure) (Wales) Regulations 2025 / Rheoliadau Cynllun y Taliad Sylfaenol (Tapro, Hawliau i Daliadau a Chau) (Cymru) 2025

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

These Regulations amend assimilated law and other legislation in relation to the Basic Payment Scheme (“ BPS ”) established under Regulation (EU) No1307/2013 (“ the Direct Payments Regulation ”). These Regulations give the Welsh Ministers the power to taper payments under the BPS from 1 January 2026 until the end of 2028 when the BPS will close. These Regulations are made by the Welsh Ministers under powers conferred by section 16(1) of the Agriculture (Wales) Act 2023.

Regulation 3 provides for the closure of the BPS on 31 December 2028 and lists legislation to be revoked upon closure of the scheme.

Regulation 4 amends the Direct Payments Regulation to allow the Welsh Ministers to taper payments under the BPS until its closure.

Regulation 5 amends the Direct Payments Regulation to change the way in which BPS payment entitlements can be transferred. Entitlements cannot be transferred unless each entitlement is transferred with an eligible hectare in the same transaction from the same transferor.

Regulation 6 amends assimilated law to prevent young farmers claiming Young Farmer Payment under the Direct Payments Regulation for the first time.

Regulations 7, 8 and 9 make provision to close the national and regional reserves, the effect of which being that farmers are unable to obtain entitlements to use for claims under the BPS from those reserves.

Regulation 10 and 11 make additional amendments to assimilated law.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales .