What Omagh Farmers Need to Know About Progressive Capping
The Farm Sustainability Payment (FSP) from Department of Agriculture, Environment and Rural Affairs (DAERA) is now underway as part of Northern Ireland’s new Sustainable Agriculture Programme.
Launched in January, the scheme introduces several important changes designed to support stronger, more resilient farm businesses while continuing to protect the environment.
For many farm families across Omagh and the wider rural district, the FSP acts as a vital financial safety net, helping businesses manage market volatility, weather impacts and rising input costs.
One of the key updates farmers should understand for 2026 is Progressive Capping.
What is Progressive Capping?
Progressive Capping reduces very high-value payments above a certain threshold.
The aim is to:
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encourage better risk management within farm businesses
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discourage unnecessary financial risk taking
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ensure support is distributed more fairly across the sector
From 2026, payments above £60,000 will be reduced on a sliding scale.
It will be phased in gradually:
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2026: 50% of the final reduction rates apply
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2027 onwards: full reduction rates apply every year
Importantly, capping does not affect:
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the number of entitlements you hold
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the value of each entitlement
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your ability to buy, sell or transfer entitlements
How to Claim the Farm Sustainability Payment in 2026
To receive FSP next year, you must:
✅ Be actively farming and carrying out agricultural activity
✅ Submit your application by 15 May 2026
✅ Activate at least 3 entitlements on 3 hectares of eligible land
Larger claims (5+ hectares)
You must be actively farming at least 3 hectares.
Smaller claims (under 5 hectares)
You must be actively farming at least 2 hectares.
You must also:
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have management control of the land used
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meet Historic Years requirements if operating before 31 December 2021
Example: How Progressive Capping Works
If a farm received £86,000 in 2025:
2026 (50% capping applied)
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First £60,000 → no reduction
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Next £20,000 → reduced by 10% = £18,000
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Next £6,000 → reduced by 20% = £4,800
Total payment = £82,800
2027 onwards (full capping)
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First £60,000 → no reduction
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Next £20,000 → reduced by 20% = £16,000
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Next £6,000 → reduced by 40% = £3,600
Total payment = £79,600
Why this matters locally
Agriculture remains one of the backbone sectors of the Omagh and West Tyrone economy. Changes like Progressive Capping may affect larger claims in particular, so it’s important for farm businesses to:
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plan cashflow early
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review entitlement use
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submit applications on time
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seek advice where needed
Understanding the new structure now will help avoid surprises later.
Next Steps
If you’re eligible, make sure your paperwork is ready well before the 15 May 2026 deadline.
Further information on FSP, including Progressive Capping.
Customers can also email agriculturalandenvironmentalschemes@daera-ni.gov.uk or call 0300 200 7848.
