Scottish government will provide LFASS loan

The Scottish government has confirmed it will provide a loan scheme for Scotland’s most vulnerable farmers, after admitting the situation with support for remote areas “is not good enough”.

It has said it will provide £50m to support farmers and crofters who qualify for payment under the Less Favoured Area Support Scheme (LFASS).

The news follows calls last week by NFU Scotland (NFUS) for the government to repeat the successful loan scheme used last year for LFASS as the “stuttering delivery” of BPS money continues.

See also: Scottish hill farmers to lose 20% of LFASS payments

Rural economy secretary Fergus Ewing said: “While our focus remains on getting 2016 payments made as soon as possible, the situation regarding LFASS is not good enough.”

Firm timetable

Letters will be sent out to farmers before the end of April, inviting them to apply for the funding.

NFUS president Andrew McCornick said: “Despite NFUS calling for the loan as the quickest way to deliver vital support to farmers and crofters, it remains disappointing that the IT system continues to need to be bypassed.

“We know that there are still many people to receive outstanding payments. For these people, difficulties will remain until all the money due to them is paid.”

NFUS also called for the £180m IT system to be abandoned unless the Scottish government could provide a timetable on when outstanding payments would be made.

But Mr Ewing has responded by revealing that the final 10% of basic payments will be paid by the end of June, and that the Scottish Suckler Beef Support and Scottish Upland Sheep Scheme will be paid in May, and Rural Priorities from June. All remaining schemes will be paid in the autumn.

Not ideal

He said the schedule “prioritises the payment of core direct support to reach the greatest number of farmers and crofters”.

“We always knew the 2016 scheme would be difficult as we continue to increase the functionality of the IT system,” he added. “That work means that some 2016 scheme payments have to be scheduled for later in the year – and while that is not ideal, farm businesses need to know the likely timescales to help with their forward planning.

“I want to reassure all farmers and crofters that officials continue to work flat out to a detailed plan to put 2016 payments on to a better footing.”