Increased payment rates for higher level stewardship

HIGHER LEVEL STEWARDSHIP (HLS) PAYMENT RATES INCREASE

The Higher Level Stewardship (HLS) payment rates are set to increase for the first time in over a decade, with a £30 million investment aimed at aligning these rates with the Countryside Stewardship Higher Tier (CSHT) and Sustainable Farming Incentive (SFI) schemes. The new rates will be effective from January 1, 2025.

REASON FOR RATE INCREASE

The increase acknowledges the essential role of HLS agreement holders, often upland farmers and early adopters, in managing land for food production, farm productivity, and environmental outcomes. This move aims to maximise the farming budget’s impact by supporting both food production and the environment.

CALCULATION OF NEW RATES

Payment rates for 157 options will rise by 34.4% of the difference between the HLS option rate and the equivalent CSHT or SFI action. Specific calculations are available for agreement holders, and the updated rates are now published on GOV.UK (Increase in payment rates for Higher Level Stewardship from 2025 – GOV.UK)

IMPACT ON AGREEMENT HOLDERS

• Standard Rates: Agreement holders with standard rates can use the published tables to calculate the increase for each option in their agreement.
• Non-Standard Rates: For agreements with non-standard or negotiated rates, holders need to calculate the difference between their HLS rate and the CS/SFI equivalent, then apply the 34.4% increase.
• Exceptions: There are 23 HLS options already paid at a higher rate than their CS and SFI equivalents, and 22 options without a comparable CS or SFI action, which will not change.

PAYMENT SCHEDULE

The new payment rates apply from January 1, 2025, and will be paid from December 2025. Outstanding claims from previous years will be paid at the original rates.

BENEFITS TO SMALLER FARMS

These uplifts will particularly benefit smaller, family-run farms, including those in upland areas where agreements with individuals and groups of commoners exist.

For the full information, please visit Higher Level Stewardship: increased payment rates now available – Farming.