SCOTLAND’S dairy farmers should know within a matter of weeks how the EU’s £2.3million 'exceptional adjustment' aid package will be distributed.

The application process is not open yet, and the Scottish Government is awaiting word from the European Commission that its local version of the scheme to access the money is acceptable – but The Scottish Farmer understands that the plan is for the highest payments to go to cash-strapped producers in peripheral areas such as Kintyre and Bute.

MSP for Argyll and Bute Mike Russell has reportedly been given that assurance in a letter from rural economy secretary Fergus Ewing.

NFU Scotland milk policy director George Jamieson said: “We are working with Scottish Government officials to agree a simple, effective application process, easy for applicant and the government, and sufficient to allow audit. We are waiting on the go-ahead from the Commission to finalise the application and audit process, which we are fairly well down the road on.

“Regarding the highest payment going to peripheral areas, what we asked for in our submission and in discussion with officials was for the worst affected and most vulnerable to be paid at the highest rate in a graduated scheme," explained Mr Jamieson. “This approach was well received and the package should address this by prioritising peripheral regions on the lowest prices and other producers who also faced the lowest prices.

“All farmers will be able to apply, the payment will be tiered, but the exact amount is yet to be finalised, as there is a bit of work we are doing to try and estimate how many producers will be in each tier," he added.

A ScotGov spokesperson said: "The Scottish Government has undertaken a full consultation exercise and the cabinet secretary has listened very carefully to the views of key stakeholders. Further information will be made public within a few weeks.”