GORDON DAVIDSON
THE Scottish Government is this week sending out 'National Less Favoured Area Support Scheme' loan offers to more than 10,600 eligible farmers and crofters.
The loan scheme was first created in 2017 in response to the problems plaguing the Scottish Rural Payments computer system, and the delays caused in the 'official' administration and release of European Union LFASS funding for the 2016 claim year. By offering eligible claimants an interest-free advance on that cash, ScotGov bypassed the logjam, and gave hill producers some semblance of their usual cash flow.
Now in its third year of operation, that stopgap concept appears to have stuck, although rural economy secretary Fergus Ewing did tell journalists at the recent NFUS AGM that the Rural Payments computer could probably have delivered the core LFASS scheme to timetable – he had just decided, given the other issues facing hill farmers this season, to err on the side of caution and use the proven loan route one more time.
Hence the letters now going out to offer claimants up to 90% of their anticipated 2018 payment, with those advance payments commencing in early April, injecting up to £56 million into the rural economy, and the balance due once the EU's boxes have been properly ticked by the main application system, a process which should now fall into the Brexit transition period.
Mr Ewing said: “With the on-going uncertainty surrounding whether we will leave the EU at the end of March with a deal in place, it is vital that we provide as much financial support and stability as possible to those operating in our most remote and rural areas.
“Having listened to stakeholders on the ongoing impacts of the last eighteen months, I am acutely aware of the continuing importance of LFASS to our hill farmers and crofters, which is why I would encourage all eligible farmers and crofters to return their opt in acceptance loan offer as quickly as possible.”
NFU Scotland LFA chairman Robert Macdonald commented: “The news that LFASS loan letters are due to land on doorsteps this week is welcome. LFASS payments provide vital support for many of our members and it is positive to see that Scottish Government are acknowledging just how important the payment is to the whole rural economy.
“Issuing the loan in a timely fashion allows farmers and crofters to plan ahead and invest in the coming months, a necessity which is becoming more and more difficult in the current political climate. However, another loan is symptomatic that the current CAP payments IT system is still struggling to effectively deliver vital support in a timely manner," noted Mr Macdonald.
“In order to receive their loan payment in good time I would advise all farmers and crofters who want their loan, to reply to their loan letter as soon as they receive it. It is important to opt in to the loan scheme if you would like to receive the up to 90% loan, sooner rather than later.
“Going forward the NFUS LFA Committee will continue to push for support targeted to the Less Favoured Area, as we did when met with Cabinet Secretary Ewing in January when he committed to working to protect the equivalent of the £65 million budget of LFASS in future scheme years.”
For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk
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