Scotland’s farmers and crofters are once again being offered early access of up to 95% of their BPS and Greening payments, with payments starting next month.

This will be the tenth 'loan' scheme of this kind delivered by the Scottish Government, with the endorsement of the National Farmers Union Scotland, which welcomed this latest round by noting that the processes involved have improved with each scheme.

For farmers who opt in, it will mean support money reaching their business three months ahead of the normal BPS schedule, providing much-needed cash flow ahead of Scotland's first post-Brexit winter.

Loan offer letters will be sent to eligible farmers and crofters this week, with the first payments due in September. Formally titled the '2021 National Basic Payment Support Scheme', ScotGov's advance payments will inject up to £337 million into the rural economy via some 17.000 businesses.

Rural Affairs Secretary Mairi Gougeon said: “Our absolute priority is ensuring farmers and crofters receive their payments and this scheme will ensure that farmers can access this support at the earliest ever point.

“There are a number of challenges arising from Brexit including around food supplies," noted Ms Gougeon. "We are continuing to support our farmers and crofters so we that we can maintain domestic food security and help secure local supply chains. Farmers and crofters have worked incredibly hard to keep us all supplied throughout the challenges brought by Brexit and the Covid pandemic and it is essential that they have the cash flow they need to continue operating.

She added: “For the first time they will be able to accept their loan online, this will enable us to process the loan payments even faster than before. I would encourage anyone who would like to accept their loan offer to do so as soon as possible to allow us to process these important payments as quickly as possible.”

NFUS president Martin Kennedy commented: “The announcement that Scotland’s farmers and crofters can access up 95% of their BPS and Greening payments from September this year will add certainty and stability across Scottish agriculture and the wider rural community at a time when businesses are adapting to the post-Brexit era and recovering from the impacts of the pandemic.

“Previous loan schemes have provided an invaluable boost to the rural economy each autumn, stimulating investment in farms and crofts across the country," said Mr Kennedy. "This year, as we recover from Covid-19, the scheme will also provide much-needed cash flow ahead of our first winter since leaving Europe and the CAP.

“This is the tenth loan scheme of this kind to be delivered by Scottish Government and processes have continued to improve with each scheme. The ability to opt in online adds a new, speedier option for farmers and crofters to accept their offer, while the traditional email and postal options remain available. I would urge all to opt into this year’s scheme and to do so online where possible to ensure payments are processed and made as soon as possible."

Mr Kennedy added: “Many farmers and crofters will be looking seriously at cash flows this autumn, particularly in areas where dry weather this summer has meant a significant amount of planning around availability of feed, fodder and bedding and this loan scheme will be a huge help.

“For many, the Less Favoured Areas Support Scheme is also critical to the viability of their business, and we will be asking Scottish Government to once again deliver an LFASS loan scheme this coming winter, as they have done in recent years.”

ScotGov has prepared a ‘question and answer’ briefing on the 2021 loan scheme, available at: https://www.ruralpayments.org/media/resources/NBPSS-2021-Q-and-A---180821.pdf

It has also produced guidance on how to accept the loan scheme offer online at: https://www.ruralpayments.org/media/resources/Accepting-your-loan-offer---NBPSS-2021.pdf