DAIRY farmers on Bute, Arran, Mull and Kintyre are to be the biggest benefactors of a £2.4 million EU fund to help them introduce efficiency-boosting on-farm management tools.

The funding is targeted towards the dairy farmers hardest hit by last year’s milk price slump, which is why the island and peninsula producers qualify for £4000 each. Producers in other areas who were paid under 20p in 2016 can each apply for £3250 from the fund, those paid under 25p, £2000, and those paid over 25p, £1000.

Commenting on the opening of the application window, rural economy secretary Fergus Ewing said: “It is clear that some farmers suffered more than others during the latest period of market instability, which put severe downward pressure on dairy farm gate prices. It is therefore only right that we deploy this EU funding to support those who were at the lower end of the milk price table.

“After taking account of the views of our stakeholders, I have decided to offer dairy farmers graduated support payments ranging from a maximum of £4000 to a minimum payment of £1000 towards the cost of implementing key management tools. This will enable farmers to take control of their own costs and drive stability. I would therefore urge everyone who wishes to do so to submit their application as soon as possible.”

NFU Scotland milk policy manager George Jamieson said: “In recent times milk prices have improved, however the damage to balance sheets and confidence will take time to recover and as such the union welcomes the EU exceptional aid scheme

“The criteria set by the EU Commissioner meant the fund could not simply be paid directly to farmers without adopting actions which fitted the Commission’s objectives. The union encourages all producers to apply for this fund as the priority from the EU was that dairy farmers should benefit directly. Accepting the funding will require production profiling and milk recording, both of which will be of value to producers and the wider dairy sector.”