Scottish Farm payments forecast 'best ever'

The Scottish Government is on track to pay farmers their Single Farm Payments (SFP) quicker and more efficiently than ever before, Richard Lochhead said today.

The Rural Affairs Secretary said that when the payment scheme gets under way next Wednesday (December 1), 15,700 farmers are due to receive European funding of around 373 million pounds, with these figures rising to an anticipated 17,500 farmers and 500 million pounds paid out by the end of the year.

These figures represent 81 per-cent of Scottish farmers getting their vital SFP support immediately and in excess of 90 per-cent having the funds in their bank accounts by the end of the year, with all payments due to be made by around the end of January - well inside the EU’s mid-2011 deadline.

Richard Lochhead said:

"More than 80 per-cent of Scotland’s farmers will receive their Single Farm Payments on Wednesday, a vital funding boost across rural Scotland in at an important time.

"This is the sixth year of the SFP and for the fourth year in a row we are on track to pay in excess of 70 per cent of eligible claims right at the start of the payment process. Thanks to the work already undertaken, the vast majority of farmers should get their SFP by the end of the year with all of the 500 million pounds due to be paid out by around the end of January, which will represent the best-ever payment performance year for Scotland.

"However, we will not rest on our laurels and work will continue apace to complete these payments as quickly as possible.

"Quick and efficient payment helps our farmers ensure they are in a strong position going into the year ahead."

The Scottish Government has again worked closely with the NFUS and with farmers to make the SFP system as efficient and effective as possible.

As well as speed of payment, Scottish farmers are given a choice of how SFP is paid, with a significant number of producers (more than 3,600 or 20 per cent) opting to take their Single Farm Payment in Euros.

Farmers and crofters also now given the opportunity to use the Scottish Government’s electronic channel to submit their single application forms upon which their SFP depends and this year around 8,600 or 40 per cent of producers have chosen to do so.

As well as reducing paper and delivering a cost saving benefit, the online system provides applicants with 24-hour access, dedicated helpdesk support and an instant receipt. The system also runs some basic checks to prevent applicants making common mistakes in their application, which means that farmers submitting online are actually helping the Scottish Government to pay more people, faster than would otherwise be the case.

Background

The Single Farm Payment Scheme is the replacement for historic arable and livestock direct support schemes in Scotland and this is the sixth year of operation.

The Scottish Government’s payment timetable means that Scottish farmers will receive their payments ahead of colleagues elsewhere.

Farmers applied for this year’s scheme in May 2010. European Regulations fix a payment window, which means that payments can be made between December 1, 2010 and June 30, 2011.

Farmers with outstanding SFP queries concerning eligibility or who have not provided up-to-date bank account details cannot receive payment and these are the main reasons for the very small percentage of farmers who might not receive their payment in December.