In a largely unannounced move, the RPA have recently (5 November) paid out a compensation amount to holdings within areas affected by flooding last winter. The claims are calculated automatically and require no evidence of damage and no evidence of land remediation. You will find that clients have received letters similar to that copied below:
Dear Sir or Madam
Farming Recovery
You are eligible to receive a farming recovery payment.
The payment reflects the scale and nature of the damage caused by exceptional flooding and rainfall between October 2023 and March 2024. It is a one-off contribution towards the uninsured costs to return your land to the condition it was before the flooding. Work might include land remediation, recultivation, soil remediation, or removal of debris or pollution.
The Rural Payments Agency (RPA) is making the payments on behalf of Defra.
What we will pay you
Your total Eligible Land Parcel Hectarage (Ha) is 26.3
Your payment value is £4,875.00
Annex 1 gives details of eligible land parcels.
Annex 2 gives more details about the methods used to confirm eligibility.
When you will receive your payment
We will make the recovery payment within 28 working days from the date of this email. Your payment will go into the bank account linked to your business’s main SBI number registered in the Rural Payments service.
Farming recovery payments are likely to be taxable as a trading receipt, depending upon your individual circumstances. We encourage you to consult your own tax advisers, or check GOV.UK for guidance.
You must ensure the bank details held in the Rural Payments service are up to date. If you need to amend your details or add a bank account to your main SBI, contact the helpline on 03000 200 301 and follow the options for the Rural Payments team.
What to do if you believe you are not eligible for the payment
If it was not your responsibility to carry out remedial work on the land parcels listed in Annex 1 during the relevant periods, you must let us know within 10 working days from the date of this email. Please confirm this in writing by emailing FRF@rpa.gov.uk.
If later checks establish that you were not responsible for the remedial work and you did not tell us, or that you have not used the funds as intended, we will recover some or all of the funding.
If you have any questions about this email
You can email FRF@rpa.gov.uk or call us on 03000 200 301 and select the option for the Farming Recovery Payment.
In the future, Defra may wish to contact you with a follow-up survey or interview to evaluate the farming recovery payments. They will use the main contact details held by RPA for this scheme and welcome your help.
Yours faithfully
Grants Service
*The views expressed are the author’s and not ICAEW’s
