The Courier & Advertiser (Angus and Dundee)
Plea for action over cheap loans from Euro scheme
SCOTTISH FARMERS could get access to cheap loans through a European scheme, claims Scots MEP Ian Duncan.
The Conservative MEP has urged the Scottish Government to opt-in to a new multi-billion euro fund, which will offer loans to farmers with rates as low as 1.5%.
The scheme, which is backed by the European Investment Bank (EIB), was recently announced by EU Agriculture Commissioner Phil Hogan.
The EU farming chief said the loans, which would form part of rural development policy under the CAP, could help member states get more value out of the regime.
“By getting credit flowing more freely, they can turn one euro of public money into two euros, three euros, or even more of secured loans to help our farms, particularly young farmers and other rural entrepreneurs, create growth and jobs,” said Mr Hogan.
According to Mr Duncan, the fund is aimed at three sectors: new entrants, promoting innovation on farms, and helping the dairy sector.
The Scottish Government can apply directly to administer the loans, which could be worth tens of millions of pounds to Scots farmers, he added.
“We are trying to get the Scottish Government to promote it. They (Government) would administer the application process but the funding, I believe, would come direct from the EIB,” said Mr Duncan.
“Richard Lochhead needs to get his finger out and act now, or explain to farmers why the Scottish Government is denying them access to cheap credit,” he said.
Mr Duncan has also joined calls for Government to take up the offer to extend the Single Application Form (SAF) deadline by one month to June 15.
The MEP, who has been gathering evidence from farmers of the difficulties with the new CAP, said farmers were struggling with an online system that was “not fit for purpose”.
He said an extended SAF deadline was essential to help those struggling to use the new system.
The Scottish Government is still deciding whether to extend the SAF deadline.
Scotland’s chief agricultural officer David Barnes has put together a team to carry out a “full impact analysis so that the Scottish Government can take an informed decision” on the issue.
A Scottish Government spokeswoman last night said: “We continue to encourage farmers and crofters to submit their applications in good time for the current May 15 deadline while we give serious consideration to and discuss with stakeholders the offer to extend the SAF window and the consequences of doing that, including delays to payments.
“We are continuing to press the European Commission for written details of what we can and cannot do regarding an SAF extension, which we need to see before any decision can be taken.”