Farmers net welcome cash

Christmas has come early for 14,300 Scottish farmers who will find their share of a £335 million EU hand-out dropping into their bank accounts over the next two weeks.

The Scottish Government has confirmed that a start was made yesterday – the first payment day allowed under European rules – to pay out single farm payment (SFP) which was introduced under the last reform of the Common Agricultural Policy to compensate farmers for the loss of direct production support.

Cabinet secretary for rural affairs Richard Lochhead said 75 per cent of payments would be made within 15 days.

“The SFP is vital for Scotland’s farmers and will provide a boost for the whole rural economy,” said Lochhead. “Around 20,000 Scottish farmers receive SFP and I know it is an important time of year for them which is why we always make strenuous efforts to process payments promptly.”

The Scottish Government has a good track record in paying out SFP on time, which contrasts sharply with the position in England where the adoption of a hybrid system based on both historical claims and the area farmed has created huge administrative problems resulting in late payments.

The Scottish system is based on farming activity in the three years from 2000 to 2002 which has simplified the calculation of payments but is now acknowledged as an anomaly. An area system will be phased in from 2014 onwards under further CAP reforms.

NFU Scotland last night welcomed the timeous payment of the SFP, which was badly needed to help farmers meet soaring input costs.

“With the cost of feed, fuel, fertiliser and bedding at historically high levels, and snow or flooding hitting many parts of the country, it will be a comfort to many heading into winter knowing these lifeline payments will be made in the first few weeks of December,” said the union’s head of policy, Jonnie Hall.

He warned that the government faced a “real challenge” to retain the simplicity of the current SFP system when moving to an area based system.

“A likely transition phase means that work on an effective, robust delivery programme needs to start as soon as possible if the difficulties [experienced in England] of delivering area based payments are to be avoided,” said Hall.