VITAL financial support is to be offered to Scottish farmers in advance of Brexit.

Scottish rural economy secretary Fergus Ewing announced that a National Basic Payment Support Scheme will operate again this year, offering loans to eligible farmers for up to 95% of their Basic Payment Scheme 2019 payments – an increase of 5% on previous years.

These loan payments are expected to be made from early October. A similar scheme in 2018 delivered payments worth more than a quarter of a billion pounds to over 13,500 farmers following months of adverse weather.

Announcing the scheme, rural economy secretary Fergus Ewing said: “Farmers are the backbone of Scotland’s rural economy, and with the UK edging ever closer to leaving the EU without a deal, it is absolutely essential that we provide as much support and certainty as we can.

“That is why the Scottish Government will shortly be issuing loan offers, providing a degree of financial certainty during these tumultuous times. Recognising the potential catastrophic consequences of a ‘No deal’ on our agricultural sector, I’m also confirming that loans will be offered at the increased rate of 95%, delivering more money to farmers through this mechanism than ever before.

“I believe there has never been a more important time for rural businesses to take the necessary steps to ensure that they are as prepared as possible for whatever Brexit outcome may be delivered. As such, I would encourage all eligible farmers, crofters and land managers to accept this offer to enable us to get your payment out to you as soon as possible.”

NFU Scotland president Andrew McCornick welcomed the announcement, saying: “News that the Scottish industry can expect a bigger injection of loan scheme money in October this year will help tackle the huge levels of uncertainty across all Scottish agriculture and address the holes that are appearing in business’ cash flows.

“Our recent survey, launched at the Highland Show in June, showed Brexit uncertainty weighs heavy on the majority of our farmers and crofters, and many have yet to undertake any degree of business planning for leaving the EU.

“Crucially, the survey highlighted that, ‘deal’ or ‘no deal’, only one in ten Scottish farmers and crofters were positive about their post-Brexit future.

“Brexit has already been a factor in the collapse of the beef price this summer. The annual store sales of calves and lambs will start next month when the potential for the UK crashing out of the EU in a deeply damaging ‘no deal’ still exists.

“Scotland’s harvest is also getting underway," he noted. "While the prospects for quantity and quality are good, the market for Scottish cereals and oilseeds would undoubtedly be hit by a ‘no deal’ exit and the potential for tariffs to unfairly benefit imports.

“Knowing the loan scheme is coming will provide some much-needed reassurance to all farmers and crofters, helping anyone who needs to talk to their bank about borrowings get through these uncertain times.”