Money flow
Where the income comes from. Where it goes. The shape of the scheme's finances at maturity.
The picture in three rows
The scheme's finances have three layers: where the money comes from, what the does with it, and where it ends up. The diagram below is intended as a wayfinding aid — the prose pages set out the substance of each layer in detail.
Scheme money flow at maturity (illustrative)
1. Money in — revenue sources
Core funding. Highest share Years 1–5.
Blended private finance
From Year 5. Reduces DEFRA dependency.
Trustmark premium market
Builds from Year 3 awards.
Charitable / philanthropic
Project-aligned grants and gifts.
2. The (SLE)
Asset-locked SLE
All revenues land here. Operating costs (auditor, facilitator, administration, contingency reserve) are met first. The remainder is distributable surplus.
3. Money out — where it goes
Producer delivery payments
Per-holding LRS payment for agreed ecological delivery. The largest single outflow. Per-hectare ranges drawn from DEFRA round-two indicative bands.
Surplus distribution
Shape depends on the model adopted. C: weighted producer share. D: community fund. A: full reinvestment. B: match-funding. E: reserve + cap.
Pooled procurement, vet, insurance, training, admin. Cost reduction at holding level rather than cash transfer; flows back as savings.
Trustmark programme
Tier assessment, market-development costs, premium-buyer relationship management. Funded scheme-level; benefit captured by tiered holdings.
Community fund (Model D)
Only under Model D. Local projects, parish councils, schools, community programmes, public-benefit initiatives.
Scheme reserves
Long-horizon contingency. Buffer against DEFRA changes, market shocks, member exits. Ringfenced separately from operating cash.
How the shape changes over twenty years
The picture above is the shape at maturity. The proportions shift over the scheme’s life:
- Years 1–5. DEFRA payment dominant. Trustmark income negligible (tier awards begin in Year 3). not yet drawn. Shared services still being established. Surplus distribution begins from Year 5 first review.
- Years 5–10. DEFRA payment still primary; trustmark premium market beginning to deliver; blended finance becoming material; surplus distribution stabilising; shared services running at full capacity.
- Years 10–15. The income mix matures. DEFRA proportion declining; trustmark and blended finance combined approaching parity with DEFRA in the . Surplus distribution at typical level; reserves building.
- Years 15–20. protections active from Year 18. Trustmark transferred or reabsorbed. Reserves drawn down to fund transition and any residual scheme commitments. See Timeline → After Year 20.
The financial forecasts assume the scheme is not wholly reliant on DEFRA by Year 5 — that is intentional in the financial design. Scheme reserves provide 12–24 months of operating buffer; the Consortium retains the right to renegotiate with DEFRA at inflection points; if DEFRA materially alters terms, the scheme enters consultation with members. See FAQ Q5.
Where this connects on the site
- Summary— the one-page overview of the scheme.
- Three example holdings— what the income shape looks like at small / medium / large.
- Income treatment reference— the four-type model setting out how each income stream is taxed.
- Surplus distribution— the five models in detail.
- Why asset-lock— what protects the SLE’s position in the diagram.
Question about how the money flow applies to your own holding? Email the Consortium facilitator directly at contact form or use the contact page. We usually reply within one working day.