Interim cash in green-scheme row

16 February 2001



Interim cash in green-scheme row

By FWi staff

MORE than 100 farmers are to receive interim payments of 1000 each in recognition of mistakes made by officials interpreting agri-environment schemes.

The case, which has run for almost two years, hinges on payments to 121 Scottish farmers who reduced sheep numbers in line with two subsidy schemes.

Until the summer of 1999, the Scottish Executive advised that quota covering those sheep could be used to claim Sheep Annual Premium on other sheep.

But the EU Commission ruled that payment was illegal and insisted that the 450,000 it contributed towards the schemes from 1995-98 must be repaid.

After the commission ruling, the executive reduced or withheld 380,000 of agri-environment stock disposal payments to affected producers.

But Scottish farm minister Ross Finnie accepted the executive was at fault and announced last Friday (9 February) that the farmers would be compensated.

Separate claims will also now be considered for individual farmers who feel the 1000 does not compensate them fully for the losses they suffered.

But it is still unclear whether or not the 450,000 paid to the farmers initially will be reclaimed from them.