DEFRA scheme payments — what you actually get paid
LRS doesn't pay a flat rate. Here's how the payment is negotiated, what comparable projects have received, and what still needs to be decided for Ure Dales.
The headline finding
payments are negotiated, not standardised. Unlike the old Basic Payment Scheme or Countryside Stewardship, there is no published per-acre rate for LRS. Instead, during the (which Ure Dales is currently in), your project team negotiates a bespoke implementation agreement with . The payment reflects the outcomes you commit to, the habitat types you’re restoring, and the costs of doing it.
Evidence from projects currently in delivery suggests implementation costs — and payments — in the range of £200–£900 per hectare per year (roughly £80–365/acre/year). But this varies enormously. Don’t treat these numbers as predictions for Ure Dales.
How the development phase works
The two-year development phase is where the payment terms are agreed. This involves (the consultant), , DEFRA, and the project team working through the outcomes, KPIs, and financial model. The agreement then locks in for the 20+ year . The first two projects to move into implementation (August 2025) represent £55m of blended public/private finance.
LRS and Countryside Stewardship
If you’re currently in a Countryside Stewardship agreement, you can exit early without penalty to enter Landscape Recovery. DEFRA has confirmed this route. The LRS typically pays more than CS for equivalent habitat outcomes, and the blended finance model allows private investment alongside public money. This is generally advantageous — but the CS agreement must be formally closed before LRS implementation begins.
BPS has been phasing out since 2021 and ends by 2027 under the Agricultural Transition Plan. LRS is one of the ELM schemes that replaces BPS income for land managers. For landowners who relied on BPS, entering LRS is one route to maintaining a public income stream from their land during the transition.
The key question that isn’t answered yet for Ure Dales
How DEFRA payments will be distributed between the managing entity and individual landowners has not yet been decided.
This is one of the central questions the consortium will address at the 30 April workshop and in subsequent negotiations with DEFRA.
- Does the payment go to the SLE, which distributes to landowners — or directly to each participant?
- If through the SLE, on what basis is distribution calculated?
- How is the blended finance element (private investment) treated differently, if at all?
How it works in comparable schemes
| Scheme | Approach |
|---|---|
| Devon Wildlife Trust LRS (Round 1) | DWT acts as SLE; negotiated payment with DEFRA; distributes to landowners per agreed parcel-level outcomes |
| Nidderdale LRS (Round 2) | In development phase; includes private capital from landowner consortium alongside DEFRA payment |
| Pre-LRS YWT peat heritage grants | YWT-managed grants to landowners per agreed management plan; project overhead retained by YWT |
Note: these are illustrative comparators. Payment structures vary per project and per negotiation. They do not predict what Ure Dales will receive.
References
Question about LRS payments? Email Phil directly at phil@opensourcearts.co.uk or use the contact page. We’ll reply before the 30 April workshop where possible.