Farm Sustainability Payment: Progressive Capping of Payments

Date published: 3 February 2026

One of these changes is Progressive Capping. The FSP is a safety net payment to help a farm business withstand those shocks that are beyond the ability of that business to manage risk effectively. Progressive capping is being introduced to discourage unwarranted risk taking and to encourage the management of risk within the business.  

This short guide explains how Progressive Capping works and reminds eligible farmers what they need to do to claim FSP in 2026.

What you must do to claim FSP in 2026

To receive the Farm Sustainability Payment in 2026, you must:

• Be actively farming and carrying out agricultural activity.
• Submit an FSP application by 15 May 2026.
• Activate at least 3 payment entitlements on at least 3 hectares of eligible land.

For larger claims:

• If you are claiming 5 hectares or more, you must be undertaking agricultural activity on at least 3 hectares.

For smaller claims:

• If you are claiming less than 5 hectares, you must be undertaking agricultural activity on at least 2 hectares.

You must also have management control of any land you use to activate entitlements. If your farm business was operating before 31 December 2021, you must also have met the Historic Years requirements.

What is Progressive Capping?

From 2026, FSP payments above £60,000 will be reduced. This is called Progressive Capping.

It will be brought in gradually:

• 2026: 50% of the final capping rate will apply
• 2027 onwards: Full capping rates will apply every year

Capping does not affect:

• The number of entitlements you hold;
• The value of each entitlement; or
• Your ability to buy, sell or transfer entitlements

Example: How Progressive Capping Works

A farm received an FSP payment of £86,000 in 2025. Here is how capping will apply.

In 2026 (50% capping)

• First £60,000           →       no reduction, leaving £60,000
• Next £20,000           →       reduced by 10%, leaving £18,000
• Next £6,000            →       reduced by 20%, leaving £4,800
• Total 2026 payment                                        = £82,800

In 2027 (full capping)

• First £60,000           →       no reduction, leaving £60,000
• Next £20,000          →       reduced by 20%, leaving £16,000
• Next £6,000            →       reduced by 40%, leaving £3,600 
• Total payment from 2027 onwards                = £79,600

Further information on FSP, including Progressive Capping.

Customers can also email agriculturalandenvironmentalschemes@daera-ni.gov.uk or call 0300 200 7848.