Ewing calls for farmers to seek government loans

Around 15 per cent of Scotland’s farmers chose not to apply for the Scottish Government’s national basic payment loan scheme which gave access to around 90 per cent of their dues while validation checks were still under way.

Yesterday a spokesman said that a total of 13,565 farmers had applied for the loan scheme, for funds totalling more than £317 million, when the doors closed for applications at the end of last week.

But as one scheme closed, another opened.

And rural economy secretary Fergus Ewing has urged hill farmers and crofters to take up the offer of an up-front loan on payments to help those farming in the country’s most remote and marginal areas.

The plea was made as the Scottish Government confirmed that qualifying producers would be offered a nationally-funded loan for their less favoured area support scheme dues again this year.

Withloanswortharound £55m to the 11,250 businesses who have claimed in the past, Ewing said that claim letters would be sent out to producers later this month and that payments should start reaching bank accounts in early April.

Eligible hill farmers and crofters will be offered a loan of up to 90 per cent of their entitlements, with the rest being paid after being processed and verified by the IT system.

Stating that he knew how important these payments were to producers, Ewing said: “While we are making good progress in our handling of LFASS2017 scheme payments, and are on track to commence payments earlier than we have done in previous years, I want to offer as much certainty as I can right now.”

And, following the lower than expected uptake of the national BPS loan scheme, the cabinet secretary moved to reassure farmers and crofters that the loan offer did not divert funding away from any other public services: “It is theirs and they should have it.”

He said that individual payments offered had been calculated to be below what producers were likely to be paid – and the loan would simply be deducted from the full payment, with the balance being paid later in the year.

“I have been clear that my priority is and will continue to be to protect and grow our rural economy and would therefore encourage eligible farmers and crofters to strongly consider taking up the offer of a loan,” said Ewing.