Almost £380 million in farm support payments will begin to hit the bank accounts of Scotland’s farmers on Monday, December 2.
The announcement was made by the Scottish Government as it revealed it plans to pay around 15,700 producers their Single Farm Payments on the first available day permitted by European regulations.
This reflects a 10.5% rise on the 14,200 producers who received support payments in the first payment tranche last year.
But due to “financial discipline” imposed by the European Union as it moves towards CAP reform, this year approximately 14,600 farmers will receive a reduction of 2.5% to their total SFP. The reduction affects all those receiving support payment of more than 2,000 euros.
However, the Scottish Government said approximately 16,000 farmers who receive their payments in sterling will stand to benefit from an increase of 5% courtesy of higher exchange rates.
Rural Affairs Secretary Richard Lochhead said: “Many Scottish farmers have had a tough time in 2013, with the extreme weather we experienced earlier this year taking its toll on businesses the length and breadth of the country.
“I know that these support payments are often a lifeline for Scottish farmers, which is why this Government is doing all it can to ensure as many farmers as possible receive their Single Farm Payment in full as promptly as possible.”
The news maintains the Scottish Government’s track record of making early Single Farm Payments to eligible farmers. Typically 90% of farmers receive funds by the end of December each year.
The ‘prompt’ action by the Government should mean all Scotland’s farmers should have received their full support entitlements by the end of January five months in advance of the European Union deadline.
But, given the cash-flow problems some Scottish farmers continue to face in the wake of a desperate and demanding winter and spring, NFU Scotland has urged the Government to make every effort to ensure all Scottish SFP claimants get delivery of their payments by the end of next month.
“The physical and financial resilience of farm businesses across Scotland have been pushed to near breaking point over the last 12 months, even with the respite of a decent summer,” said director of policy at NFUS, Jonnie Hall.
“Prompt delivery of the SFP is very welcome, but also badly needed.
“Getting so many payments out on the first day that payments are permitted by European rules is commendable, and we look to the Scottish Government to make every effort to complete its full payment run by the end of December,” said Mr Hall.
Mr Lochhead said the payments will inject a total of almost £450 million into Scotland’s rural economy.
He said with every £1 of output from the agricultural sector generating an additional 80p in other parts of the Scottish economy, the “vital funding for farmers” clearly delivers benefits for all of Scotland.
Mr Lochhead also said that although financial discipline is being imposed by Europe, the Scottish Government successfully lobbied to minimise its impact on Scottish farmers, and as a result Scotland is receiving about four million euros less in cuts than had originally been proposed.
“We are now working hard to ensure that farmers receive their payments as early as possible.
“Producers can help us to settle their claims by responding promptly to any queries they may receive from Scottish Government officials.”