£20m Scottish Government backing to ease cash flow concerns.
The Scottish Government is taking further action to ease cash flow issues in Scottish agriculture.
Rural Affairs Secretary Richard Lochhead has announced a scheme – backed by £20 million Scottish Government funding – to enable more farmers and crofters to access loans whilst waiting for their Common Agricultural Policy (CAP) payments.
Speaking at the National Farmers Union of Scotland (NFUS) annual conference in St Andrews, Mr Lochhead confirmed that more than 7,300 payments have now been authorised, which equates to about 40 per cent of the 18,000 or so eligible claims.
He also stressed that the Scottish Government is continuing to do everything in its power make payments as soon as possible against the challenge of implementing hugely difficult CAP reforms.
The Rural Affairs Secretary 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.”
Joan McAlpine has urged Dumfries and Galloway farmers to take make use of a £20m hardship fund announced last week for Scottish agricultural businesses hit by cash flow problems caused by the new Common Agricultural Policy (CAP) payments.
Rural Affairs Secretary Richard Lochhead announced the scheme at the National Farmers Union of Scotland (NFUS) annual conference. He said progress on making payments has been made but recognised that many agricultural businesses were facing cash flow issues as a result of the biggest ever CAP reform.
Ms McAlpine urged any farmers facing delays in receiving CAP payments to take advantage of the fund, she said:
“Over this winter farmers in Dumfries and Galloway have faced a double whammy of extreme weather and flooding, compounded by delays in payments caused by the introduction of this incredibly complex new payment structure, caused by CAP reforms.
“This new fund announced today will mean farmers can access loans while waiting for their CAP payments to be processed, and I’m looking forward to seeing this important funding reaching our local businesses as swiftly as possible to help alleviate the challenges our local farmers have faced over the past few months.”
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