EU dairy support payments arrive early to help hard-pressed farmers

The farming minister said the first payments have been made to over 10,000 farmers
The farming minister said the first payments have been made to over 10,000 farmers

EU support payments to help hard-pressed UK dairy farmers manage cash flow problems will start arriving in bank accounts from Monday – two weeks ahead of schedule, Farming Minister George Eustice has announced.

The farming minister said the first payments have been made to over 10,000 farmers across England, Scotland, Wales and Northern Ireland (amounting to over £19 million, and accounting for three-quarters of all eligible farmers).

Payments will continue through November and December, for those who have yet to receive their pay-out from the total EU allocation of £26.6m. The UK gained the third largest support pot of any member state in the Commission’s aid package, which was unveiled in September following protests, in a bid to mitigate against volatile prices and the effect of the Russian trade embargo.

RPA will pay farmers based on a flat rate, linked to milk production (this amounts to around 0.176p per litre in England, Scotland and Wales, and 0.226ppl in Northern Ireland, where milk prices have been lower).

Announcing the early payments, UK Farming Minister George Eustice said, “It’s been a tough year for dairy farmers grappling with low prices for the milk they produce. We fought for, and secured, one of the largest support packages amongst EU countries and the RPA has pulled out all the stops to start making these important payments two weeks earlier than planned. I hope these payments will now provide some much needed relief for dairy farmers across the UK.”

Any dairy farmer in England who receives a letter from the RPA and is asked to register on the Rural Payments system or to provide up to date bank account details, is urged to call the RPA’s helpline on 03000 200 301 as soon as possible. Farmers in Wales, Scotland and Northern Ireland who are not registered will be added to the Rural Payments system using information provided by the devolved administrations.

Meanwhile, the RPA said it is on track to make full payments on Basic Payment Scheme 2015 claims as soon as possible within the payment window, making the majority of payments in December and the vast majority by the end of January.

CLA President Ross Murray responded to the news, “It is good news that EU support payments for UK dairy farmers will start arriving today. Earlier payment will give some help to farms that have been severely affected in a very tough year. However it is vital that the Rural Payments Agency remains steadfast in its commitment to deliver full Basic Payment Scheme payments on time, to all recipients.”

The NFU has described the announcement as “encouraging”.

But there’s a warning that the RPA, who administer the funding allocation, must not lose focus in getting BPS payments out on time.

After extensive NFU lobbying in Brussels and Westminster, Defra announced in September that dairy farmers in England will share £15.5 million and farmers in Wales will receive a total of £3.2 million.

NFU President Meurig Raymond said: “Today’s news that the first payments have already been made to those eligible dairy farmers in England and Wales is encouraging. It is important now that this money is distributed on time and without the burden of unnecessary red tape.

“I and my fellow NFU Council members stressed to RPA chief Mark Grimshaw at our last meeting in October that all sectors are suffering cash flow problems and to ensure that they are on track to start making full BPS payments in December.”

NFU dairy board chairman Rob Harrison said: “Thousands of British dairy farmers will welcome this cash boost announced today, but it is important that we keep this in context. The average support package payment will be £1,800 and dairy farmers, on average, are around £6,000 a month worse off compared to this time 12 months ago. It’s clear that the impact of the market downturn on farm is different and relates to which milk contract or milk buyer a farmer is supplying. Farmers who wish to offer financial support to those most in need should contact R.A.B.I or the Farming Community Network.

“We will continue to lobby government and urge processors and retailers to work with dairy farmers for more fair and transparent contracts, stronger producer groups and the development of a futures market.”