AIC tells minister: "delayed payments cause damage beyond the farmgate"

Delayed payments is not an issue which stops at the farmgate, but is something that threatens the very fabric of the UK agricultural sector, AIC Chief Executive David Caffall told agriculture minister Lord Bach this week.

AIC has welcomed the steps now being taken by RPA to remedy the delays, such as removing four of the six validation stages and prioritising claims in favour of full-time farmers. However, there is still a real backlog of work and substantial progress is urgently needed, not just for farmers but for those who trade with them.

"Defra has offered no guarantee that payments will be made in full before the end of June. This reinforces AIC’s long-held view that substantial interim payments must be made as quickly as possible. With a preliminary validation process completed, there should be sufficient guarantee that valid interim payments can be made. Indeed Defra itself said as much at the beginning of the year," said Mr Caffall.

"We can no longer accept the argument that such a move will delay the full payment process."

AIC argues that farmers, and AIC members, need to see liquidity brought to the industry right now. Only swift delivery of interim payments can stop the industry haemorrhaging the £8 million a month in interest charges which the banking industry estimates this debacle to be incurring.

"Continued delay is threatening to damage the industry infrastructure at a time when agriculture is offering a solution to many of the sustainability issues we are all facing," concludes Mr Caffall. "These opportunities must not be squandered."