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Farm convergence funding to be capped at £55,000

Rural Economy Secretary Fergus Ewing outlined the farm payments.
Rural Economy Secretary Fergus Ewing outlined the farm payments.

The distribution of millions of pounds of convergence funding will be capped at £55,000 per recipient and an extra £10 million of funding for crofters will be mainly given to producers on Region 3 land.

Rural Economy Secretary Fergus Ewing made the comments in Holyrood yesterday while updating Parliament on the progress of farm payments.

Convergence uplift is additional Common Agricultural Policy funding allocated to the UK to bring Scotland’s per-hectare subsidy average up.

At the time of its allocation, not all the money came to Scotland and Chancellor Sajid Javid vowed to “correct that decision” by awarding £160m to Scottish farmers last year.

Mr Ewing previously revealed his spending plans for £80m of the total convergence funding pot, and said all eligible producers would receive a share, however the bulk would go to those farming Regions 2 and 3 land.

Yesterday, Mr Ewing said a cap would be applied to the basic payment element of this funding to prevent excessive payments and ensure an appropriate level of support to larger, more productive businesses.

Mr Ewing also revealed an additional £10m from the total £160m package, awarded to crofters, would be weighted towards those on the poorest land with 70% destined for Region 3.

The funds will be paid by March end.