Cabinet Secretary Richard Lochhead can expect some angry exchanges from frustrated farmers at NFU Scotland's AGM in St Andrews tomorrow morning (Friday). The key issue is the current CAP payment crisis that has left about two thirds of Scottish farmers and crofters anxiously waiting for the all-important, lifeline BPS payment that is usually paid in December.
Despite the Scottish Government making a hefty investment of £178m in a new IT system, or around £10,000 for each and every claimant, the delivery mechanism has failed. Worse than that, the majority of farmers are completely unaware of when they will be paid.
Scott Henderson, Chairman of the Scottish Beef Association (SBA) made the worrying prediction that some may not be paid until June, saying: "Instead of making the initial payment by the end of March, it is envisaged that this could now be delayed - most likely to the end of May or beyond. This raises more concerns with the consequential delay in payment of the Less Favoured Area Support Scheme (LFASS), together with the Calf Scheme money."
Calling for an enquiry the SBA says, at the very least, that it will be looking to the Scottish Parliament's Public Audit Committee to launch an investigation into what it says has been an unmitigated financial disaster.
NFUS president Allan Bowie said: "We now have a cash crisis on many farms and crofts with many family businesses currently being supported by extended credit from the trade and flexibility from their banks. While all will hope for the continued support of banks and suppliers we cannot expect this to continue in all cases. In short, the wheels of Scotland's vital rural economy have stopped turning, the debt levels being carried by those who service our industry are growing and the worry and frustration for farmers and their families continues to build."
Mr Bowie said he will be pushing the Cabinet Secretary to be "up-front" with his members about the payment timetable.
One of the consequences of the delayed payments is that those who elect to be paid in Euros and then take a position on the currency have been caught out. As they haven't received any Euros they are having to borrow money to settle their positions. Adding insult to injury, the price of Euros has gone up by about 6p over the last 12 months.
Mr 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...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.”
Market round-up
Wallets Marts sold 1359 prime hoggs in Castle Douglas on Tuesday to a top of £87 per head and 191.5p per kg to average 184.3p (+4.9p on the week).
A huge show of 649 cast sheep sold well with ewes peaking at £108 for Texels and £70 for Blackfaces.
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