The Basic Payment Scheme (Tapering, Payment Entitlements and Closure) (Wales) Regulations 2025

• Citation: S.I. 2025/1282 (W.)
• Sections: 13

Section 1 Title, coming into force and application

(1) The title of these Regulations is the Basic Payment Scheme (Tapering, Payment Entitlements and Closure) (Wales) Regulations 2025.

(2) These Regulations come into force on 1 January 2026, subject to paragraph (3).

(3) Regulation 3(2) of, and the Schedule to, the Regulations come into force on 1 January 2029.

(4) These Regulations apply in relation to Wales.

Section 2 Interpretation

In these Regulations—

“ basic payment scheme ” (“ cynllun y taliad sylfaenol ”) means the Basic Payment Scheme under the Direct Payments Regulation;

“the Direct Payments Regulation” (“ y Rheoliad Taliadau Uniongyrchol ”) means Regulation (EU) No1307/2013 of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy.

Section 3 Closure of the basic payment scheme

(1) The basic payment scheme will cease to exist at the end of 31 December 2028.

(2) The Schedule makes provision revoking legislation governing the basic payment scheme.

Section 4 Tapering of payments under the basic payment scheme

(1) The Direct Payments Regulation is amended as follows.

(2) After Article 5A (the total ceiling for Wales), insert—

Tapering of payments under the basic payment scheme in Wales

(1) The Welsh Ministers may annually reduce payments under the basic payment scheme by such amounts as they consider appropriate.

Section 5 Transfer and use of entitlements

(1) The Direct Payments Regulation is amended as follows.

(2) In Article 34 (transfer of payment entitlements), after paragraph (1) insert—

(1A) Transfer of payment entitlements, by any method, can only take place if it includes the transfer of an eligible hectare in the same transaction from the same transferor.

Section 6 Young farmer payment

(1) Commission Delegated Regulation (EU) No639/2014 of 11 March 2014 supplementing Regulation (EU) No1307/2013 of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and amending Annex X to that Regulation , is amended as follows.

(2) In Article 25 (transfer of entitlements)—

(a) in paragraph (1), after “at any time of the year” insert “providing that each entitlement is transferred with an eligible hectare” ;

(b) after paragraph (2), insert—

(3) For the purpose of this Article, “ eligible hectare ” has the meaning given in Article 32(2) of Regulation (EU) No1307/2013 .

(3) In Article 49 (access of legal persons to the payment for young farmers), after paragraph (4) insert—

(5) The annual payment for young farmers in Wales referred to in Article 50(1) of Regulation (EU) No1307/2013 is only available to those young farmers who are already receiving such payment before 1 January 2026.

Section 7 Closure of the national and regional reserves in the Direct Payments Regulation

(1) The Direct Payments Regulation is amended as follows.

(2) Omit Article 30 (establishment and use of the national reserve or regional reserves).

(3) Omit Article 31 (replenishment of the national reserve or regional reserves).

Section 8 Closure of the national and regional reserves in Commission Delegated Regulation (EU) No639/2014

(1) Commission Delegated Regulation (EU) No639/2014 is amended as follows.

(2) Omit Article 26 (reversion to the national or regional reserve due to retention on transfer of payment entitlements).

(3) Omit Article 28 (establishment of payment entitlements from the national or regional reserve under Article 30(6) of Regulation (EU) No1307/2013 ).

(4) Omit Article 29 (establishment of payment entitlements from the national or regional reserve under Article 30(7) of Regulation (EU) No1307/2013 ).

(5) Omit Article 30 (further rules on the establishment of payment entitlements from the national or regional reserve).

Section 9 Closure of the national and regional reserves in the Common Agricultural Policy Basic Payment and Support Schemes (Wales) Regulations 2015

(1) The Common Agricultural Policy Basic Payment and Support Schemes (Wales) Regulations 2015 are amended as follows.

(2) Omit regulation 10 (basic payment scheme entitlements).

(3) Omit regulation 11 (transfer of entitlements).

(4) Omit regulation 18 (national reserve).

Section 10 Additional amendments in the Direct Payments Regulation

(1) The Direct Payments Regulation is amended as follows.

(2) In Article 5A (the total ceiling for Wales)—

(a) in paragraph (1), for “must” substitute “may” ;

(b) in paragraph (2)—

(i) for “must” substitute “may” , and

(ii) for “before the start of the relevant year” substitute “at any time before payments are made” ;

(c) in paragraph (3), for “must” substitute “may” ;

(d) in paragraph (4), for “, for any relevant year, must” substitute “may” ;

(e) omit paragraph (5).

(3) In Article 22 (basic payment scheme ceiling)—

(a) in paragraph (2)—

(i) at the beginning insert “The Welsh Ministers may determine” , and

(ii) omit the words from “is the amount which” to the end;

(b) omit paragraph (4);

(c) omit paragraph (5).

Section 11 Additional amendments in the Commission Implementing Regulation (EU) No809/2014

(1) Commission Implementing Regulation (EU) No809/2014 laying down rules for the application of Regulation (EU) No1306/2013 of the European Parliament and of the Council with regard to the integrated administration and control system, rural development measures and cross compliance is amended as follows.

(2) Omit Article 22 (allocation or increase of the value of payment entitlements).

(3) In Article 23 (recovery of undue payment entitlements), for “revert to the national reserve or regional reserves referred to in Article 30 of Regulation (EU) No1307/2013 ”, in both places it occurs, substitute “be adjusted accordingly” .

Section 1

Subject to the saving specified in Part 2, the instruments listed in column 1 of Table 1 and column 1 of Table 2 (which collectively established the rules for direct payments to farmers under support schemes within the framework of the common agricultural policy) are revoked, in relation to Wales only, to the extent specified in the corresponding entry in column 2 of each of those tables.

Revocation of specified assimilated law governing the basic payment scheme in Wales

Revocation of specified domestic secondary legislation governing the basic payment scheme in Wales

Section 2

The provisions revoked by Part 1, notwithstanding that revocation, continue to have effect, in relation to Wales only, so far as is necessary for the purposes of finally determining any outstanding rights to, and liabilities arising in respect of applications for, direct payments under the basic payment scheme in Wales made in respect of a claim year ending on or before 31 December 2028.