Cash advance on delayed farm payments

Farmers and crofters still waiting for a direct subsidy payment at the end of March will receive a cash advance from the Scottish Government.

First Minister Nicola Sturgeon has confirmed the Scottish Government will use up to £200 million of national funds to provide cash support while Common Agricultural Policy (CAP) claims are being processed.

Speaking ahead of a meeting with NFU Scotland, the First Minister said: “We are less than half way through the payment window allowed by Europe, and the majority of Scottish producers – more than 10,000 – have already received a subsidy payment. However, payments are not being made as quickly as we would like.

“I very much recognise the cash flow issues facing Scottish agriculture, which underpins our £14 billion food and drink industry. That is why the Scottish Government has earmarked up to £200 million of national funds so that any farmer or crofter who has not received an instalment by the end of March receive a nationally-funded payment from the Scottish Government in April.”

Rural Affairs Secretary Richard Lochhead has confirmed that today’s announcement will also enable Scottish Beef Scheme payments to be made in the middle of April, in line with previous years.

It has also been announced that national funds will also be used to ensure hill farmers and crofters in Scotland’s most fragile and remote rural areas who rely on Less Favoured Area Support Scheme (LFASS) funding will receive a payment in March as usual.