£20M loan scheme to help farmers during EU fund delay
Farmers still waiting on delayed European Union funding payments will be helped by a loan scheme backed by £20 million of Scottish Government funding, Rural Affairs Secretary Richard Lochhead has said.
Farmers still waiting on delayed European Union funding payments will be helped by a loan scheme backed by £20 million of Scottish Government funding, Rural Affairs Secretary Richard Lochhead has said.
He announced the action to help ease cash flow issues facing the industry as a result of late Common Agricultural Policy (Cap) payments.
Around 60% of farmers and crofters are still waiting on their payments to be made.
The claims have been affected by major issues with the IT system used to administer them, while the Government said the complexities of the new Cap system had hindered the process.
Speaking at the National Farmers Union of Scotland (NFUS) annual conference in St Andrews, Mr Lochhead said: I fully recognise the cash flow issues facing Scottish agriculture as a result of difficult market and weather conditions coinciding with the biggest Cap reform ever.
The Scottish Government continues to do everything in our power to get first instalments out to as many people as we can by the end of March and the balance of payments as soon as possible after that.
We are making progress. However, the extreme complexity of the policy we agreed with industry in Scotland - which is being delivered by a brand new IT system that we are constantly working to improve - means it is taking longer than expected to process applications, and I am aware that as a result some farmers and crofters are facing hardship.
That is why the Scottish Government is taking further action to ease cash flow pressures in the sector by earmarking up to £20 million to ensure those most in need can access the credit they require until their payments come through.
We will work with NFUS, banks and others to finalise the detail of the scheme and ensure it is available as quickly as possible and simple to access.''
Liberal Democrat MSP Tavish Scott said: This is a total admission of failure from the SNP Government.
Their approach to Cap payments is in utter chaos.
Instead of distributing the payments farmers are all due and were promised so long ago, the benevolent Cabinet Secretary is offering a loan that will have to be repaid.
Why should farmers take out a government loan when they should be receiving the government farm payment?
That won't help hard-pressed farmers. They've had to suffer one of the wettest winters on record, with severe flooding and falling prices, and they need their Cap payments now.''