SHOCKWAVES rumbled around the first afternoon of the Royal Highland Show, as reports emerged that the Scottish Government had once again asked Europe for an extension to its farm payment deadline from June 30 to October 15.

The benefit for ScotGov is clear – the extension would give it an extra three-and-a-half months to get farm support payments out without incurring EU penalties for mis-administration of Common Agricultural Policy funds. Only last week, Audit Scotland, in its latest appraisal of ScotGov's farm support computer, warned that the penalty worst-case-scenario could cost the taxpayer £60million.

With that sword hanging over its head, ScotGov had been giving the impression that heaven and earth was being moved to maximise, perhaps even conclude, payments ahead of the end of this month. The news – as yet unconfirmed – that it has sought this extension, suggests that an early end to the payments delay is not, after all, in sight.

Speaking from the Highland Show, NFU Scotland president Andrew McCornick said: “If the extension saves the Scottish taxpayer £60 million in fines, that is good news, but it takes the thousands of Scottish farmers and crofters who are still waiting on part or all of their payments no further forward and with no clear timetable provided. Some of those payments have been outstanding for 18 months. That is wholly unacceptable.

“We’ve asked for Scottish Government to have a clear and open dialogue with the industry on payments," noted Mr McCornick. "Farmers and crofters should have been the first to know that once again there is to be a delay in payments. This does nothing to restore trust or build confidence.

“Those farmers and crofters attending Day One of Scotland’s premier agricultural event at the Highland Show, are keen to do business, but are having to hold back on making business decisions and investment because of outstanding payments. They deserve transparency and clarity."

It is understood that the European Commission is still considering the extension request.

First Minister Nicola Sturgeon is due to address farming leaders at the RHS tomorrow. Under questioning from the newly resurgent Scottish Conservatives, she had avoided confirming that an actual extension was being sought: "The government is extremely focused, led by Rural Economy Secretary Fergus Ewing, on making sure that payments are made, and that in the meantime there is a loan scheme available for farmers to ensure that we are taking care of their cash flow issues.

"Good progress has been made on making payments, both in terms of the 2015 round and also now in terms of the 2016 round. We will endeavour to make payments on time, and we will continue to discuss with the European Commission any contingency arrangements we consider are required."