CONVERGENCE FUNDING is to be capped at £55,000 for those farmers and crofters receiving funds from the Basic Payment element of the allocation.

A total of £90million of convergence funding will be delivered to Scotland by the end of March this year, with this cap applying to the division of £52 million of that pot.

The Scottish Government made the announcement today (January 23) following previous discussions around preventing 'excessive' payments from being made to individuals, whilst still ensuring the 'spirit' of convergence is adhered to.

Rural Economy Secretary Fergus Ewing commented: “In allocating this funding, I am acutely aware of the need to adhere to the spirit of convergence and ensure this money goes to where it was originally intended.

“I am pleased to confirm a cap of £55,000 will be placed on the Basic Payment element of this funding. I believe this strikes the right balance between preventing excessive payments while ensuring an appropriate level of support to larger, more productive businesses," he explained.

“In addition, I am confirming that the £10 million I previously announced for crofters will be weighted to Region 3, with 70% of the funding going there, and 30% being allocated to Region 2.

“This funding will be paid by the end of March, in addition to scheduled Pillar 1 payments, and ensures a significant proportion of funding goes to those who farm in our most marginal and remote areas,” he concluded.

NFU Scotland’s director of policy, Jonnie Hall, welcomed the confirmation of the delivery of the first instalment of convergence cash. He said: “The commitment to inject a further £90 million of direct support in to Scottish agriculture by the end of March provides additional financial stability in what remain very challenging and uncertain times.

“Providing additional support to the Basic Payment Scheme ensures that almost all sectors and businesses get some extra financial assistance, while using coupled support helps to target these funds to active farmers and crofters.

“It's also right that this package is tilted towards those farming and crofting on Scotland’s most challenged land, especially in the wake of EU-required cuts to payments under the 2019 Less Favoured Areas Support Scheme,” he continued.

“We continue to work with Scottish Government on the best use of the second tranche of the convergence dividend (some £70 million) which should be used in the next financial year. In the same vein, we are also considering how best to help enable change when a further £51.4 million is received for 2020/21 and 2021/22 which follows the Bew Review into intra-UK allocations of funding,” he concluded.