SCOTTISH FARMERS are to receive £5.7 million in reimbursement payments from the European Commission.

The payments come via Europe's Financial Discipline Mechanism, which aims to keep the Pillar 1 budget in balance through the creation of a crisis reserve, which is then released back to farmers the following year, if the reserve is not required. They will begin arriving in bank accounts this week, with the average reimbursement worth around £277 per claimant.

Welcoming the reimbursement, Rural Economy Secretary Fergus Ewing said: “I am pleased to confirm that around 14,500 Scottish farmers and crofters will receive Financial Discipline Reimbursement payments totalling £5.7 million this week. The repayment varies in relation to the total value of Direct Payment they receive, so not every claimant gets the same amount, but it averages £277 and will be a small, but welcome boost to eligible farmers’ cash flow.”

The FDM has existed since the start of the Single Farm Payment Scheme in 2005 but was triggered for the first time against Pillar 1 payments in 2013. The reimbursement for each farmer/crofter is based on the total value of 2017 direct payments – BPS, Greening, Young Farmer and Voluntary coupled support. Farmers and crofters who receive less than €2000 worth of direct payments are exempt from the reduction and do not therefore receive any re-imbursement.