Rural Payments and Services

Rural Economy Secretary Fergus Ewing announced the 2016 National Basic Payment Support Scheme on 13 September, 2016. Under this loan scheme, farmers and crofters will be able to apply for an interest-free loan of 80% of their 2016 CAP Basic Payment and Greening entitlement up to a maximum of €150,000.

Over 17,000 businesses will be entitled to qualify for this loan initially, and work will continue to make offers and payment to the remaining eligible businesses by the end of the year. Offer letters will be sent from Tuesday - 27 September - to invite eligible farmers and crofters to apply for the loan. There will be some Basic Payment Scheme applicants who won’t be eligible for a loan and we will write to these producers with more information on why they will not receive one.

Initial offer letters will include an application slip which must be returned to us by the 12 October, 2016. To decide who’s eligible, we will look at each farmer’s 2016 Single Application Form (SAF) which will have been submitted earlier this year, and the Basic Payment entitlements they hold.

If an offer letter is dated 27 September and the application slip is returned by the 12 October, then we intend to pay the loan in the first two weeks of November. For responses received after this date or if we are unable to offer you a loan until a later date, this will mean the loan payment is made later.

The Scottish Government will cover the loan interest charged provided the difference is repaid in accordance with the terms and conditions – but if it isn’t, then under those circumstances we do reserve the right to start charging interest.

A full Q and A is available on Rural Payments and Services and if you have any queries, please contact the Entitlements and Payments helpline on 0300 300 2222.