New subsidy payments become slightly clearer

MANY Argyll farmers will now have their first insight into the estimated value of their new Basic Payment Scheme (BPS) entitlements for this year and coming years.

The Scottish Government has written to some 16,000 BPS applicants across the country, and though many farmers are still unclear on when their vital support payment will arrive, the majority will receive their 70 per cent part-payment by the end of January.

The rest paid is due to be paid by the end of March with the balance payment of 30 per cent to be delivered to everyone by the end of April.

Scottish Government has calculated the number of entitlements a BPS claimant may be allocated based on the land declared on their Single Application Form in 2015. As some fields are still being assessed before being allocated to the right payment region

NFU Scotland’s director of policy, Jonnie Hall, commented: ‘Members are understandably going to compare their estimate of their BPS total in 2015 with their final Single Farm Payment Scheme (SFPS) payment for 2014. It is worth remembering that it does not cover any coupled support for suckler calves or hill ewe hoggs that will be received.

‘ While everyone’s first step on transition will be different, a lot of our members will see a significant fall in their payments in that first step - especially heavily stocked livestock producers.

‘ Those with land in either Payments Regions 2 or 3 – ie rough grazing – may also be concerned by an apparent shortfall in their number of entitlements compared to their eligible hectares declared.

‘ This is because the Scottish Government has applied a reduction coefficient on all payment region 2 and 3 land.

‘In effect, 90 payment entitlements will be allocated for every 100ha of rough grazing. This will mean that across the two rough grazing payment regions, there will be fewer entitlements allocated, but of a higher value. There will be no financial impact, but some margin to cover potential ineligible land going forward.’