Loan scheme offers Scottish farmers up to 95% of 2021 BPS

A total of £337 million will be available to agricultural businesses across Scotland
A total of £337 million will be available to agricultural businesses across Scotland

A loan scheme will offer Scottish farmers the opportunity to receive up to 95 percent of their Basic Payment Scheme and Greening payments in advance.

Around 17,000 businesses are expected to receive a loan offer from the 2021 National Basic Payment Support Scheme (NPBS), which will deliver around £337m into farmers' bank accounts.

And for the first time, farmers will be able to opt in online, potentially speeding up the process and ensuring loans arrive in September.

NFU Scotland said the scheme would add 'certainty and stability' across the agriculture sector and the wider rural community following the impacts of both Brexit and the pandemic.

The union's president Martin Kennedy said: “Previous loan schemes have provided an invaluable boost to the rural economy each autumn, stimulating investment in farms and crofts across the country.

"This year, as we recover from Covid-19, the scheme will also provide much-needed cash flow ahead of our first winter since leaving Europe and the CAP."

The 2021 NPBS is the tenth loan scheme of this kind to be delivered by Scottish government and processes have continued to improve with each scheme.

The ability to opt in online adds a new, speedier option for farmers and crofters to accept their offer while the traditional email and postal options remain available.

Mr Kennedy urged farmers to opt into this year's scheme and to do so online where possible to ensure payments are processed and made as soon as possible.

“Many farmers will be looking seriously at cash flows this autumn, particularly in areas where dry weather this summer has meant a significant amount of planning around availability of feed, fodder and bedding and this loan scheme will be a huge help."

He also called on the government to deliver the Less Favoured Areas Support Scheme (LFASS) this winter, as it was 'critical' to the viability of remote farming businesses.

Rural Affairs Secretary Mairi Gougeon said the Scottish government's priority was to ensure farmers received their payments on time.

"There are a number of challenges arising from Brexit including around food supplies," she added.

"We are continuing to support our farmers and crofters so we that we can maintain domestic food security and help secure local supply chains."