The Scottish government has come under pressure from farmers to provide relief for those who have yet to receive their farm payments.

The call, led by NFU Scotland, comes after Scotland’s Rural Affairs Secretary Richard Lockheed acknowledged that the Scottish Government had fallen well short of its BPS payment targets last Monday. In a meeting with industry leaders he admitted that only 30% of eligible claimants (5,000 out of a total 18,000 farmers and crofters) had received the first instalment of their BPS payments by the end of January.

Farmers’ groups are now urging the government to make part-payments, claiming that, in the week since the Rural Affairs Secretary’s announcement, only seven per cent of claimants to the new Common Agricultural Policy support scheme have received part-payment. That would mean that since the payment run started in late December, only 35 percent of claimants have received payment.  

NFUS said it is likely that significantly less than 35 per cent of the total pot of available funding has been distributed. The union said a “cash crisis” on Scottish farms is deepening.

On Monday, Forth and Clyde Regional Chair Tom French hosted an event at Balgray Farm, South Lanarkshire, which brought together farmers, MSPs and representatives of key supply trades – agricultural machinery, feed and fertiliser – to quantify the impact that the late delivery of basic payments is having on other parts of the industry. At the meeting it was clear that firms further up the supply chain are giving farmers credit, which NFUS said amounted to the rest of the supply chain “carrying the can” for the cashflow problems. Union representatives said some farmers are really beginning to feel the strain.

Host farmer Tom French commented, “I welcome our local MSPs meeting with us to hear about the severity of the current crisis and the impact that it is having – not just at farm level – but for the whole rural economy. Quite frankly, the wheels have stopped turning.

“We knew 2016 would be a difficult year as we changed to the new CAP regime but we now have the perfect storm of low commodity prices, poor weather and severe delay in getting support payments out to the industry.

“Every day is adding further costs but much of that burden is currently being carried by those businesses who supply us.  Bills traditionally settled in December are going unpaid and orders are drying up.”

On Wednesday, the Scottish Beef Association took up the call, warning of "real financial hardship" being faced by Scotland's livestock farmers.

NFUS has also expressed concerns about the letters of entitlement issued by the Scottish government, and the government’s helpline, which members said lack adequate information. NFUS Vice president Andrew McCornick said, “Too many Scottish farm businesses still have no idea what the true value of their support will be and when they are to receive their part payment.

“Heading into the second week of February, only 35 per cent of claimants have received some funding.  The only way Scottish Government can properly address this crisis is to drop its aversion to risk, and deliver part-payment to all claimants in the next few weeks. If you can issue a letter of entitlement, you can issue part payment.”