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Scots farmers to receive share of £12.2million Cap refund

Small firms are being let down by the accelerating closure of local bank branches, the FSB has warned.
Small firms are being let down by the accelerating closure of local bank branches, the FSB has warned.

Thousands of farmers will receive a cash boost next week as part of a £12.2million Common Agricultural Policy (Cap) refund.

The money was originally taken from 2013 direct farm payments, for those claiming more than 2,000 euros (£1,448), to create an EU agriculture crisis fund. The EC has now refunded the unspent money so that it can be repaid to farmers across Europe.

According to the Scottish Government around 14,600 producers will receive an average refund of £845 each. “This will be a modest albeit welcome windfall for thousands of Scottish farmers and crofters who had their payments reduced in 2013 as required by Europe,” said Farm Minister Richard Lochhead. “I am pleased to be able to confirm that the refunds should begin reaching bank accounts from next Thursday, June 11.”

He also urged farmers and crofters who have not already done so to submit their Single Application Form (SAF) for 2015 Cap support as soon as possible.

NFU Scotland’s director of policy Jonnie Hall said: “In what has been a bleak, cold start to the summer, these refunds will be a welcome sight when they arrive in bank accounts.

“Given the sums involve, no payment notice will be issued to recipients so we would urge members to keep an eye on their accounts to ensure that they receive the refund from next Thursday onwards.”

All businesses are required to register online with the Rural Payments and Services website to receive financial support, however the SAF can be submitted online or with a paper form.

Meanwhile, MSPs will hear evidence form farmers this morning on how Cap implementation and the new online SAF process is going. A number of figures from the farming sector are speaking at a meeting of Holyrood’s rural affairs, climate change and environment (Racce) committee.