WIREDGOV

Almost 14,000 producers will have received their Single Farm Payments by Monday, December 1, injecting over £200 million into the rural economy.

Monday is the first day payments are permitted by European regulations and around £223 million will be paid into bank accounts that day. By the end of the year, 95 per cent of producers - 20,200 businesses - will receive £427 million.

Cabinet Secretary for Rural Affairs Richard Lochhead said:

"This Government is pulling out all the stops to ensure our farmers receive their Single Farm Payment as promptly as possible.

"These payments are always vital but never more so than in the current economic climate. Today's payments are another clear example of this Government delivering for hard-pressed businesses..

"Prompt payment will help ensure producers are in a strong position going into the year ahead. Our attention now turns to making the £61 million Less Favoured Area payments as soon as possible."

Payments are being issued to producers who have successfully passed the Scottish Government's eligibility checks. Because of European Commission conditions attached to payments, farmers and crofters who have outstanding inspections or other eligibility issues cannot be paid until these have been resolved.

Mr Lochhead added:

"I urge those producers yet to receive payments to work with Scottish Government staff and respond promptly to requests that will assist us in settling claims quickly."

The Single Farm Payment scheme is the replacement for historic arable and livestock direct support schemes in Scotland and this is the third year of operation. Farmers applied for the scheme in May 2008.

The European regulations fix a payment window that means payments can be made between December 1, 2008 and June 30, 2009. Farmers with outstanding Single Farm Payment queries concerning eligibility cannot receive payment until these have been resolved: there is no provision for advances in 2008 and, therefore, eligible claims will be paid in full.

The payments farmers will receive are net of a 13 per cent reduction for modulation (EC modulation five per cent, Scottish modulation eight per cent).

Emphasis is now shifting to making Less Favoured Area Support Scheme payments. Validation, inspections and other pre-payment activity, to meet regulatory requirement, are underway to allow payments - worth £61 million to more than 13,000 producers - to begin as soon as possible

Related Information

http://www.scotland.gov.uk/Topics/Agriculture/grants/Schemes/SFPS/Introduction