Active farmers and crofters in Scotland are set to benefit from the first instalment of convergence funding.
The initial £80 million will be distributed to support active farming, with a focus on those who farm in marginal uplands, hill farms and island areas.
The funding is the first tranche of a £160m package the UK government has agreed to pay to rectify a ‘historic wrong’ relating to EU CAP funding that it failed to pass on to Scotland between 2014-2020.
Further details of the funding arrangements will be made available in due course.
The Scottish government's rural economy secretary, Fergus Ewing said: “This approach ensures that the money goes to where it was originally intended - with a significant proportion going to those farming in our marginal and remote areas.
“This funding will also meet my commitment to maintain support for farmers and crofters in the Less Favoured Area.
“I believe this approach gets the money to where it needs to be and will result in all eligible farmers and crofters either increasing or significantly increasing the money in their bank accounts.
“This approach respects the spirit in which this money was intended, and will, as far as we can achieve, close the gap in support between Scottish farmers and crofters and the EU average,” Mr Ewing said.
On 4 September, the Chancellor of the Exchequer confirmed that the UK government would return £160 million of funding that was denied to Scotland by previous UK administrations.
Under the last CAP reform, the UK qualified for a £190 million uplift because of Scotland’s extremely low average rate per hectare.
Without Scotland, the UK would not have qualified for this money. The UK government of the time decided to distribute the funding across the UK, with Scotland receiving £30 million, which was £160 million below what was due.
