Loan scheme launched for Scotland's farmers and crofters

The Scottish government has launched a loan scheme aimed at helping crofters and farmers recover from the impact of Brexit and the Covid pandemic.

A total of £337m will be available to agricultural businesses, which could see each given up to £133,638.

Loan offers will be sent to eligible parties this week, with first payments due to be made next month.

The Scottish government said it was essential that they "have the cash flow they need to continue operating".

The money has been welcomed by the National Farmers Union (NFU) Scotland.

The 2021 National Basic Payment Support Scheme will give farmers and crofters access to financial support up to three months earlier than the EU's common agricultural policy (CAP) payment period.

The announcement comes after sheep farmers and crofters spoke of a dramatic fall in Scottish wool prices, which has been compounded by the pandemic.

NFU Scotland president Martin Kennedy welcomed the loan scheme

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.

"We are continuing to support our farmers and crofters so we that we can maintain domestic food security and help secure local supply chains."

She added: "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."

For the first time, businesses in the sector will be able to accept their loans online, which the Scottish government said would enable it to process loan payments "even faster than before".

'Certainty and stability'

The number of eligible businesses has yet to be confirmed, but the Scottish government expects offers to be made to more than 17,000.

NFU Scotland president Martin Kennedy said the announcement will add "certainty and stability" across Scottish agriculture and the wider rural community.

He added: "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."

Mr Kennedy urged his members to opt in online in a bid to fast track payments.

He said: "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."