Cash-strapped Scottish farmers ‘desperate’ for BPS cash

Cash-strapped Scottish farmers are now desperate to receive their single farm payments in one of the toughest farming years in living memory, NFU Scotland (NFUS) has warned.

Latest figures from the Scottish government show 5,000, or just 30%, of eligible claimants have received their Basic Payment Scheme (BPS) payment.

These are first instalments of about 80% of the value of the BPS and greening payments. The balance is expected to be paid by the end of April.

See also: Farm leaders demand clear timetable on BPS payments

However, these payments account for only 15% of the total overall value of the BPS pot in Scotland.

“That leaves the whole Scottish farming industry strapped for cash and ancillary industries and banks providing stretched credit facilities for farmers,” said NFUS president Allan Bowie.

“We cannot ignore the human element in these delays, with frustration turning to desperation and despair for some farm businesses. We urge those who are most acutely affected not to suffer in silence. 

“The Scottish government has indicated a willingness to look at genuine hardship cases and if NFUS can assist members with that, then we will.”

Mr Bowie was speaking after Scottish rural affairs secretary Richard Lochhead met industry leaders on Friday (29 January) to deliver an update on the delivery of the BPS payments timetable.

In a statement made to NFUS in mid-November, the Scottish government said the majority of farmers and crofters would receive their part-payment by the end of January.

But the ongoing failure of the Scottish government’s £180m BPS computer delivery system – costing nearly £10,000/BPS application – means it has missed its payments targets by some distance.

Mr Lochhead said his department was working “flat out” to deliver as many payments as quickly as possible, with more authorised payments expected to drop into bank accounts in the coming days.

But due to the challenge of implementing CAP reform, it was taking longer than expected to process applications – and EU rules prohibit paying out on claims until they have been fully processed.

“I share the industry’s disappointment and frustration that we are not making faster progress, and I recognise the need to take further action to speed up payments,” said Mr Lochhead.

“That is why I have instructed the deployment of additional staff to area offices and for applications to be processed seven days a week. I will also ensure the Scottish parliament and industry are updated more regularly on progress.”

From now on, the Scottish government will give weekly updates about the BPS payments timetable.

Friday’s meeting did, however, bring some good news for Scottish farmers.

Agri-Environment Climate Scheme (AECS) 2015 applicants will shortly find out whether their applications have been accepted, said Mr Bowie. The AECS will also soon be opening for 2016 applications.

In addition, claims from young farmers and new entrants start-up and capital grants schemes are being processed, with funds available in April.

Scottish farmers and crofters who are suffering financial hardship and are concerned about when they will receive their farm payments should contact the Scottish government’s customer helpline on 0300 300 2222.