Gordon Davidson

NFU SCOTLAND has called on the Scottish Government fix the support cash crisis in Scottish agriculture by delivering a part payment to all claimants.

Supply trade companies were now "carrying the can" for ScotGov's slow delivery of support payments to farmers under the new Basic Payment Scheme, said the union, and with debts mounting up, only an immediate emergency payment will avert a rural economy crisis.

Since the BPS payment run started in late December, official figures suggest that only 35% of Scottish claimants have received part-payment - and the union believes that outlay itself amounts to significantly less than 35% of the total pot of available funding.

At an event hosted by NFUS Forth and Clyde regional chairman Tom French, at Balgray Farm, Crawfordjohn, this week, the union brought together farmers and representatives of key supply trades – agricultural machinery, feed and fertiliser – to quantify the impact that the late delivery of basic payments is having on other parts of the industry.

Mr French commented: “Quite frankly, the wheels have stopped turning. We knew 2016 would be a difficult year as we changed to the new CAP regime, but we now have the perfect storm of low commodity prices, poor weather and severe delay in getting support payments out to the industry.

“Every day is adding further costs, but much of that burden is currently being carried by those businesses who supply us," said Mr French. "Bills traditionally settled in December are going unpaid and orders are drying up.

“The message from today to Scottish Government was put your aversion to risk aside and do all you can to get the vast majority of payments out the door to the vast majority of businesses. Farmers are very poor at wealth generation but they are very good at wealth distribution and getting funds into farm bank accounts is absolutely essential if we are to get funds flowing again to the wider rural economy.”

NFU Scotland vice president Andrew McCornick added: “It was abundantly clear from the input of the farmers and the trade representatives here today that the human element is a growing concern. The worry and concern of those still to receive payments, and what that means for their family and their business, has seen many now fulfilling the role of counselling and helping their fellow farmers through what are difficult times.

“Clear and concise communications remains vital to that process. We heard today that letters of entitlement issued by Scottish Government have been incomplete and only added to the confusion and several felt that the helpline provided had failed to deliver any clarity on individual circumstances.

“Too many Scottish farm businesses still have no idea what the true value of their support will be and when they are to receive their part payment," said Mr McCornick. “Heading into the second week of February, only 35% of claimants have received some funding. The only way Scottish Government can properly address this crisis is to drop its aversion to risk, and deliver part-payment to all claimants in the next few weeks. If you can issue a letter of entitlement, you can issue part payment.

“Those who are robustly supporting their customers by continuing to provide credit or extending payment terms are providing a huge service to the farming community but they cannot be left to carry the can for Scottish Government failings in delivering support."

Commenting on the BPS delays, Rural Affairs Secretary Richard Lochhead said: “We are continuing to make progress against the challenge of implementing hugely radical CAP reforms that have been made more difficult by tailoring the policy, as agreed with industry, to better meet Scottish needs.

“In response to industry demands, we are replacing the previous two Scotland-wide direct income support schemes with six regionalised schemes in the same year we are having to move to a whole new system where payments are based on land area rather than historic production levels and implement greening. This is in addition to administering the dozen or so funding schemes in the new rural development programme which, for the first time ever, has been reformed in tandem with the direct payments system.

“My officials have been working relentlessly for many, many months to get the new system up and running to accept applications and begin making payments. We are doing everything in our power - including deploying additional staff to area offices and processing applications seven days a week - to pay as many first instalments as we can by the end of March and the balance of payments as soon as possible after that.”

For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk