A plea from NFU Scotland for a £55 million cash injection to help beleaguered farmers hit by recent bad weather was quickly ruled out last night by Scottish Government sources.
Rural Affairs Cabinet Secretary, Richard Lochhead, issued a bland statement, pointing to the £500,000 the Government had already committed towards the cost of disposing of fallen stock. He said talks would continue with the industry to identify the "most appropriate and practical method" of delivering further aid to the industry.
But it is understood that a proposal from the union to divert Pillar 2 (rural development) funding to Pillar 1 (direct support) through the single farm payment (SFP) has been dismissed as a non-runner.
Currently, 14% of direct support is taken from farmers' payments and transferred to rural development funding – so-called modulation – with 5% compulsory under EU rules.
But 9% is allocated at the discretion of the Government and the NFU says this may be utilised to boost this year's SFP, which is paid in December and is worth more than £600 million to Scottish farmers. Using all the 9% to top up SFP would be worth about £55m.
Government sources say the EU approved the modulation rate last October and the NFU's demands may be met by "robbing" the Scottish Rural Development Programme.
NFUS president, Nigel Miller, said the merit of the union's proposal was that it would not mean new money having to be found and would benefit all farmers.
He said: "While challenges surround both available funding and EU rules on extraordinary payments, we think there is scope to provide targeted support. The chronic and cumulative impacts of the weather on all sectors – arable and livestock – must not be ignored or forgotten.
"We are pressing the Scottish Government to utilise its discretion within voluntary modulation to provide an injection back into the SFP in December."
He added the need for the support was even more stark with the prospect of Pillar 1 support being cut by the EU later this year.
Mr Lochhead last week visited a Dumfries and Galloway farm at the invitation of the NFU to see the impact of recent snow.
"The pressure on some farming business is now becoming unbearable," Mr Miller said.
STIRLING United Auctions sold 2149 store cattle and cast cows at Stirling. Averages (per kg) – bullocks (975) 229.16 (-0.10p) to 300.8p and £1490/head, black and white bullocks (163) 175.97p to 187.9p and £980/head, heifers (726) 219.71p (+7.37p) to 279.1p and £1390, forward cattle (17) 186.85p to 204.1p and £1310/head, cast cows (100) 146.46p to 208.3p and £1490/head
The company also sold 3751 prime sheep, including 17 spring lambs, and 3140 hoggs to average 201p/kg (+5p), and 594 cast ewes and rams. Hoggs sold to £123/head and 286p/kg, ewes to £111.50/head and rams to £108.50/head.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article