Scottish Government has been accused of creating a “shambles” in the farming sector over Less Favoured Area Support Scheme (LFASS) payments.
Earlier this year government was forced to launch a £50million loan scheme to administer LFASS payments for 2016.
It follows a similar scheme for 2015 LFASS money and other schemes for direct support payments – all launched as a result of problems with the government’s new farm payments IT system.
NFU Scotland’s regional manager for the north-east, Lorna Paterson, says she has been inundated with calls from farmers asking for advice on the LFASS loan scheme.
According to Ms Paterson, many farmers in the north of Scotland were not included in the first round of loan offer letters, which had to be accepted and returned by yesterday.
She said they were now left with mounting bills, which would traditionally have been paid when LFASS monies arrived, and no clarity on if or when they will be offered money through the loan scheme.
“We are told there is going to be another round of loans but we don’t know when that will be. These farmers are expecting this money; they normally get the LFASS in March,” said Ms Paterson.
“It’s a shambles. They are all asking how are they meant to pay their bills.”
She said lack of clarity on when LFASS loans would be offered to the remainder of farmers who have not yet received them would result in agricultural supply companies having to carry the financial burden.
“For those that have not got it [LFASS money] it is a crisis,” added Ms Paterson.
“They are going to pass their problem on to somebody else and it’s the supply and service companies that are going to suffer.”
The National Sheep Association’s Scottish area chairman John Fyall said late payment of LFASS money posed a real threat to tenant farmers.
He said: “A lot of upland producers are tenants as well. This is a very expensive time of year and there are a lot of costs from lambing time. Rent is due on May 28.”
Rural Economy Secretary Fergus Ewing last night said more than 10,6000 offer letters for the LFASS loan scheme had been issued.
He added: “I anticipate that further letters will issue early next week as we continue to work through the more complex cases.
“Although the initial deadline has now passed, I would still encourage anyone who wishes to do so to still apply. Farmers and crofters who accept the offer of a loan, but have missed the deadline specified in their original letter, will still receive the full loan payment to which they are entitled to as soon as possible. Further information about the scheme can be found via the RPID website, though our helpline – 0300-300-2222 – or a local area office.”
