Scottish farmers receive first tranche of £160m convergence money

The funds have been sent to those who farm in marginal uplands, hill farms and island areas
The funds have been sent to those who farm in marginal uplands, hill farms and island areas

The first tranche of £160m farming payments are now underway to Scottish farmers after the UK government agreed to rectify a 'historic wrong'.

More than 17,400 active farmers and crofters have now received £86.2 million of convergence funding.

The payments are part of a £160m package relating to EU CAP funding that the UK government failed to pass on to Scotland between 2014-18.

The funds had been the subject of a lengthy and concerted campaign to ensure that Scottish farmers received the money they were due.

It started when the EU Multi Annual Financial Framework set out the aim of redistributing CAP payments more equitably across the EU based on average €/hectare.

Under the framework, all countries receiving less than 90% of the EU average would receive a funding uplift.

As the member state, the UK only qualified for an uplift because of Scotland, whose per hectare rate is only 45% of the EU average.

England, Wales and Northern Ireland are all above the 90% qualifying threshold.

After months of lobbying from the industry, Scottish farmers will benefit to the tune of £160m.

Further payment will be made in the coming weeks to ensure eligible farmers, including new claimants in 2019, receive a payment by the end of March.

A cap of £55,000 will be applied to the Basic Payment element of individual entitlements.

Rural Economy Secretary Fergus Ewing said: “Since successfully persuading the UK government of the need to return this money to Scotland, I have been conscious of the need to adhere to the spirit and original premise of convergence by ensuring it goes to those who it was originally intended to support.

"Our approach ensures that this vital funding gets to where it needs to be."

The initial £80m of convergence funding was announced to support active farming, with a focus on those who farm in marginal uplands, hill farms and island areas.