Rural Payments and Services

Earlier this month the first direct loan payments for 2016 arrived in farmers’ bank accounts, injecting over a quarter of a billion pounds into the rural economy.

Having spent some time at AgricScot last week talking to farmers and stakeholders from the wider rural economy, it is clear that this injection has been widely welcomed. The payments have provided security and certainty our rural communities need to plan for the year ahead.

We have had a great response from farmers to the 2016 National Basic Payment Support Scheme so far. Over 12,500 farmers have now received 80 per cent of the 2016 Basic Payment Support and Greening payments up to the maximum of €150,000, totalling £256.5 million. Applications are continuing to be returned on a daily basis and I would encourage any farmers who have yet to respond, but who would like to take up the offer of a loan, to do so as soon as possible.

Farmers will not pay any interest on these loans. We are required by EU state aid rules to calculate a notional amount of interest on the loan, but provided farmers adhere to the loans terms and conditions they will not pay any interest.

Just over 100 customers are still to receive a loan offer and that process will be complete by the end of this month. For those who would like to apply, the loan scheme remains open to applications until Wednesday, 14th December. If farmers have concerns about the loan scheme, then I would encourage them to contact their local RPID office who will be able to assist.

We have offered these loans to provide certainty and security during these uncertain times. I am delighted that the majority of farmers have decided to take up our offer, but we must not become complacent. I will continue to work hard to deliver for our rural communities, pushing the UK Government to provide immediate clarity on a number of key farming and food issues that are directly impacting the Scottish rural economy.

Fergus Ewing

Rural Affairs Secretary