SCOTLAND' S rural economy cabinet secretary Fergus Ewing has confirmed that, for the fifth year running, interest free loans will be available for farmers to apply for from the end of September; which this year will be equivalent to 90% of their final farm support payment from the EU.

The news was warmly received by farmers representatives, who welcomed the certainty that the first payments would go out as early as November, just in time for events such as AgriScot.

In previous years, the government offered an 80% upfront payment, and Mr Ewing explained the 10% increase: “We have now undertaken four loan schemes in recent years and they have been very successful. This has allowed us the confidence to pay a higher amount.”

He also made a strong commitment to delivering on next year's CAP deadlines through the conventional payment system: “Failure is not an option, we will deliver in terms of EU targets by next summer with 95% of payments by the end of June. We will provide a timetable for payments and want to provide farmers with clarity which will be set out early in the timetable.”

Attention was focussed on ScotGov's troubled computer payments system and commitments were made to encourage more people to apply online to speed up the process. In order to support farmers who have struggled with the online system, digital appointments will be offered nationwide to offer assistance in applications.

“I want to make sure communications are simpler and easier to understand," said Mr Ewing. "We will improve our relationship with our customers through the use of modern communication channels so we can better understand their needs.

"We have agreed with CGI, our IT delivery partner, refreshed organisational planning to deliver the functionality that is needed to make payments accurately on time.”

Despite wishing to move towards full digitalisation of online SAF, Ewing stated he would not make online applications compulsory so as not to isolate certain applicants.

With regards to LFASS, which Mr Ewing acknowledged is a real lifeline to hill farmers by accounting in some cases for half of their income, 90% of payments are scheduled to be paid to 2017's applicants by May 2018. For those who applied in 2016, payment processing begins this week and the majority of payments are set to be allocated by the end of October. If plans to deliver LFASS payments by May 2018 don’t seem possible in the start of the new year, a further LFASS loans scheme will be brought forward, payable from April.

Mr Ewing reflected that it has been a particularly difficult year for farming and with the extreme bad weather it has not only affected arable farming but conditions have made it difficult for the likes of sheep shearing and the ability to graze cattle outdoors. Against that background, he hoped that the plan for CAP stabilisation will re-build confidence amongst the farming community through hard work and deliverance.

Opposition parties in the Holyrood chamber were luke-warn in their welcome for Mr Ewing's plan. Tory rural spokesperson Pete Chapman criticised the current state of unprofitability of farming in Scotland: “It is about time we had a coherent plan on the next steps regarding CAP Payments. However, it is too little too late.

"We have seen farm debt rising by another £113 million this year at an all-time high of £2.32 billion, we are seeing farming incomes drop by 75% in the past five years and 48% in the last year alone. We have experienced three years of chaos in farm payments with farmers in despair, unable to pay their bills.”

Scottish Labour spokesperson Rhoda Grant, displayed her hostility to the minister’s statement: “Sorting out this shambles was a top priority and that was 16 months ago – he appears to have made no headway. Today we hear the fiasco is ongoing with the announcement of a further loan scheme. 90% in the form of a loan is cold comfort to someone who hasn’t received any of their 2015 payment.”

But NFUS president Andrew McCornick welcomed the minister’s stabilisation package: “This will be the fifth loan scheme they have put out, which is welcome as we head into a period of instability. He has offered as much as he can.”

When asked whether he believes the government will meet its target of 95% BPS payments by next year's deadline, Mr McCornick responded: “I am expecting him to meet the target, he has delivered more defined guidelines and the loan announcement will allow farms to continue trading. We need to get on and deliver something that works for Scotland, moving away from computer problems and allowing us to focus on Brexit.”