BPS entitlements form the basis of the BPS and are what farm businesses use to get paid BPS each year. To successfully apply for BPS each year your farm business must hold and ‘activate’ the same number of entitlements as you are declaring in eligible hectares of land. Entitlements are activated by using them to claim BPS payment. For example, if you apply for BPS payment on the basis that you are farming 10 hectares of eligible land you must also hold at least 10 entitlements to receive your payment.
How do I obtain BPS entitlements?
If your farm business does not already own entitlements you can obtain them in a number of ways:
- By applying to the ‘Regional Reserve’. To find out more on applications to the Regional Reserve you should read our Guide to the Young Farmers’ Payment / Regional Reserve.
- By inheriting them when a farmer who currently holds entitlements dies, or where a farmer who currently holds entitlements has transferred all land they own by gift to another person. To find out more on Transfers you should read our Guide to the Transfer of Basic Payment Scheme Entitlements at the link below.
- By leasing or purchasing them from another farm business which currently holds entitlements and wants to lease or sell them. This is called a ‘Transfer’ of entitlements. To find out more on Transfers you should read our Guide to the Transfer of Basic Payment Scheme Entitlements at the link below.
Confiscation of BPS entitlements (the ‘2-year rule’)
BPS entitlements may be confiscated for non-usage. We no longer rotate entitlements on behalf of farm businesses. It is your responsibility to manage and activate your entitlements for payment. You must activate all of your entitlements in at least one scheme year over any 2-year period, except in cases of force majeure/exceptional circumstances. Any entitlement (or fraction of entitlement) that remains unused for 2 consecutive years will be automatically taken off you (confiscated).
Guidance & Forms
You are advised to read this Guide before completing an application to transfer Basic Payment Scheme Entitlements.