Chapter 2: Direct Payments After EU Exit Section 7: Meaning of "basic payment scheme" and other expressions in Chapter 2
This section sets out definitions for terms used in Chapter 2, in relation to the continuation and phasing out of Direct Payments during the agricultural transition period in England.
	Subsection (2) defines the term "basic payment scheme" as covering the basic payment, which accounts for almost 70% of the overall payment; the greening component, which accounts for around 30% of the total payment and is made if certain agricultural practices that are beneficial to the environment and climate are upheld; and the young farmers payment, a top-up for eligible farmers aged 40 and under.
	Subsection (3) defines the term "legislation governing the basic payment scheme". This includes the EU "basic act" (the "Direct Payments Regulation" (Regulation 1307/2013)), which sets out the framework for CAP Direct Payments and was incorporated into UK law from 11pm on 31 January 2020 for the remainder of the 2020 scheme year under the Direct Payments to Farmers (Legislative Continuity) Act 2020. It also includes retained subordinate legislation relating to the "basic act".
	Subsection (4) defines the term "agricultural transition period for England" as that set out under section 8(1). The agricultural transition period is the period during which reductions will be applied to Direct Payments to phase them out in England.
	Subsection (5) sets out that a direct payment under the basic payment scheme may be defined as such whether or not the greening and young farmer payment elements are included.
	Subsection (6) defines a "Delinked payment" as that set out in section 12(2)(a). A delinked payment means that the Direct Payment would be delinked from land, so that there would no requirement for a recipient to farm land in order to receive the payment during the agricultural transition period.
	Subsection (7) defines a "Relevant payment" as either a direct payment made under the basic payment scheme or a delinked payment.
	Subsection (8) explains that the "Direct Payments Regulation" referred to in subsection (3) is Regulation (EU) No 1307/2013. This is the "basic act".