A loan scheme has been launched by the Scottish government to provide support for farmers following months of adverse weather conditions.
The fund, called the National Basic Payment Support Scheme (NBPSS), will commence loan payments to farmers from early October.
A similar scheme was created in 2017, which delivered payments of more than £317 million to over 13,500 farmers.
Under the new scheme, loans will be offered to eligible farmers for up to 90% of what they are due as part of their Basic Payment Scheme 2018 payments. This will be on an opt-in basis and offset against those payments.
NFU Scotland has welcomed the scheme announcement, calling it a "vital" financial support scheme for farmers following a year of extreme weather conditions.
The past 12 months have been very difficult for farmers. 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.
'Lucky one'
NFU Scotland's Regional Chairman for Forth and Clyde Region, Willie Harper said the scheme will help his cash flow.
Mr Harper makes 2000 bales of silage to feed to his cattle over winter, but this year only 1000 have been made.
Planning ahead he has, for the first time, sown a hybrid kale in to stubble to provide a winter forage for cows.
He has also bought fertiliser to spread on grassland in September – again a first - in a bid to extend the grazing season for his stock.
Mr Harper said: “Although my silage stocks are 50 percent compared to a normal year, I know from speaking to other farmers around the country that I am the lucky one and many have had to feed their silage to livestock this summer just to keep their animals going.
“I have put plans in place that will hopefully extend my grazing but that has come at a cost of close to five figures. News that the loan scheme money will come through in October will help address that hole in my cash flow,” Mr Harper said.
'Much-needed reassurance'
This summer’s drought has already seen farmers and crofters forced to start using winter fodder now to keep cattle and sheep going.
NFU Scotland President, Andrew McCornick said the scheme will provide some "much-needed reassurance" for farmers.
Announcing the scheme, Scotland's Rural Economy Secretary, Fergus Ewing said: “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.
“I have also asked the Agriculture Weather Advisory Panel to consider what other actions may be helpful in response to the recent dry weather. The Panel met last week and will be issuing advice, focused on the continuing need for farmers to plan ahead and collaborate effectively across the industry,” Mr Ewing said.
