CABINET Secretary Fergus Ewing has announced that a national loan scheme will be made available to 17,000 farmers and crofters this autumn.
The scheme has been set up to fill the gap that would have emerged in the rural economy as the Scottish Government's IT system to deliver CAP payments continues to struggle to be fit for purpose.
In a statement to Scottish Parliament, Mr Ewing indicated that those eligible for CAP funding under the Basic Payment Scheme, Greening or Young Farmer elements will be able to apply for a loan worth up to 80 per cent of the value of their entitlements. Letters to eligible businesses will be issued at the end of September, with an application deadline of 12 October, creating the potential for up to £300 million to be injected into the rural economy in the first few weeks of November.
The announcement of the loan scheme coincided with publication of the Scottish Government's results from the 2016 Survey of Bank Advances to Scottish Agriculture which revealed that total outstanding bank loans to agriculture were £2.2 billion, up £177m or nine per cent from May last year. The figure excludes an estimated £1.7bn of liabilities from hire purchase, leasing, family members and other sources.
Meanwhile, applications for the first period of the EU milk reduction scheme, which opened for applications on 11 September, are due to close on September 21.
The voluntary scheme provides the equivalent of 12.23p per litre to producers who reduce the amount of milk they produce over a fixed three-month period, when compared to the same three-month period the year before.
Application forms are available on the RPA website at: https://www.gov.uk/guidance/milk-production-reduction-scheme-how-to-apply
Market round-up
Messrs Craig Wilson Ltd sold 8 prime heifers at Ayr on Tuesday to a top of £1351.35 per head and 231p per kg to average £1200.31 and 218.7p, while 11 prime bullocks peaked at £1395.20 and 225p to level at £1230.78 and 203.1p. Four prime bulls sold to £1028.30 and 182p to average £968.61 and 167.4p.
In the rough ring 124 beef cows sold to £1300 and 185.3p to average 125.3p, while dairy cows peaked at £840 and 119p to level at 91.9p. Eleven bulls sold to £1190 and 139.4p to average 96.2p.
The firm also sold 5 pedigree Holstein Friesian dairy cattle to a top of 1450 guineas for a heifer and an average of £1228.50, while 22 commercial dairy cattle peaked at £1680 for a second-calved HF and levelled at £1092.72.
Wallets Marts sold 1426 prime lambs in Castle Douglas on Tuesday to a top of £90 per head and 215.4p per kg to average 174.5p.
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