Farmers to win £337m loans

As Scotland’s farmers begin to receive loan scheme offer letters from Scottish government this week, the industry has been reminded that they need to ‘opt in’ to secure early payments.

This year, for the first time, recipients will have the opportunity to opt in online, potentially speeding up the process and ensuring loans arrive in September, said NFU Scotland – but the loan offers can also be accepted by email and post.

The 2021 National Basic Payment Support Scheme (NPBS) offers recipients the opportunity to receive up to 95 percent of their Basic Payment Scheme and Greening payments in advance.

Around 17,000 businesses are expected to receive a loan offer which will deliver around £337 million into the Scottish rural economy this autumn.

NFU Scotland President Martin Kennedy said the move would add ‘certainty and stability’ across Scottish agriculture and the wider rural community at a time when businesses were 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. 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.

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