Warm welcome for early loans despite the cold
As if to accentuate the perverse nature of Scotland’s weather, the announcement of measures to help the country’s farmers cope with the knock-on consequences and additional costs of the recent drought took place yesterday as much of the country endured a cold, rainsoaked day.
But the dreich weather did little to dampen the reception or cool the warm welcome from the farming sector for early up-front loans on their support payments.
Announcing the scheme, Scotland’s rural economy secretary Fergus Ewing said he understood the problems facing farmers:
“We will be issuing loan offers shortly, providing a much-needed cash injection for those feeling the effects of increased prices for feed and fodder, the impact of restraints on irrigating their land, and in some cases resorting to selling livestock earlier than planned to preserve fodder for breeding stocks.”
With the payments likely to begin reaching bank accounts by October, NFU Scotland said the move would provide vital financial support for Scottish farmers, following a year of extreme weather.
A similar scheme which
was operated in 2017 delivered payments of more than £317 million to over 13,500 farmers in the final months of the year.
Under the new scheme, loans will be offered to eligible farmers for up to 90 per cent of their Basic Payment Scheme 2018 dues – and while farmers will have to opt into the scheme, applications will be available next month.
NFU Scotland president, Andrew Mccornick said that the past 12 months had been very difficult for farmers across the whole of Scotland:
“Record rainfall in parts, the ‘Beast from the East’ and the driest spell for 40 years has put incredible pressure on farmers and crofters in terms of keeping their businesses going.
He said precious fodder
was already being used up to keep cattle and sheep going and the drought had also impacted on yields of both barley and straw.
These shortfalls were putting extreme pressures on all parts of the industry – but farmers had been swift to react and instigate new plans to help them survive:
“That kind of planning places pressure on bank accounts. Knowing that the basic scheme payment loan scheme will be paid in October is great news,” said Mccronick.
“It was one of the key asks to emerge from the Scottish stakeholders meeting on feed and fodder ten days ago and we are pleased the Government has heard our call to bring forward the Basic Payment Scheme loans payment.
“It will provide some much-needed reassurance as well as ease cash flows on farms and crofts, helping anyone who needs to talk to their bank about borrowings that may be needed to help them through this fodder crisis.
The Scottish Tenant Farmers Association also welcomed the news, with chairman Christopher Nicholson stating that the easing of cash-flow problems would help prevent farmers from having to sell livestock earlier than planned onto a depressed market.
‘With Scotland’s tenanted sector concentrated in the more marginal livestock farming areas, we would encourage tenant farmers to opt into the scheme to ensure early receipt of support payments.’