Almost 14,000 producers will have received their Single Farm Payment (SFP) by Monday next week, injecting over £200m into the rural economy.

Almost 14,000 producers will have received their Single Farm Payment (SFP) by Monday next week, injecting over £200m into the rural economy.

Monday is the first day on which payments are permitted by European regulations and around £223m will be paid into bank accounts then. By the end of the year, 95% of producers' 20,200 businesses will receive £427m.

The SFP scheme is the replacement for historic arable and livestock direct support schemes in Scotland and this is the third year of operation. The payments farmers will receive are net of a 13% reduction for modulation (EC modulation 5%, Scottish modulation 8%). Modulation is in effect a tax on the SFP that raises money for other schemes like the Scottish Rural Development Programme.

Cabinet Secretary for Rural Affairs Richard Lochhead said: "This government is pulling out all the stops to ensure our farmers receive their SFP as promptly as possible. "Prompt payment will ensure producers are in a strong position going into the year ahead. Our attention now turns to making the £61m Less Favoured Area (LFA) payments as soon as possible."

Payments are being paid to producers who have successfully passed the Scottish Government's eligibility checks. Because of European Commission conditions attached to payments, farmers and crofters who have outstanding inspections or other eligibility issues cannot be paid until these have been resolved. Lochhead added: "I urge producers yet to receive payments to work with Scottish Government staff and respond promptly to requests that will assist us in settling claims quickly."

NFU Scotland president Jim McLaren welcomed the announcement and commented: "The collective debt on Scottish farms has grown to £1.4bn this year as producers struggle to cover the surge in input costs and the additional burden of higher interest rates to service those debts. This money will bring with it a sense of relief for many of our members.

"For many Scottish farmers, prompt payment of support under the LFA Support Scheme will be the next stepping stone in keeping their businesses moving forward.

"Our LFA Committee will sit down with the Scottish cabinet secretary on Monday December 1. While discussing the future arrangements for LFA in Scotland, this unique meeting between a union committee and a cabinet minister is also likely to include discussion on the need for LFA payments to be made as a matter of urgency. We hope the cabinet secretary is in a position to deliver further good news at the start of the week."