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This item was published during the term of a previous administration that ended in April 2007

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Pledge on single farm payments

24/11/2006

The Executive expects to pay 70 per cent of eligible claims for Single Farm Payment within the first month of the 2006-07 payment window, it was confirmed today.

Payments in December are expected to amount to around £290 million and represent support to over 14,000 producers. Payments should be in producers' bank accounts from December 1 onwards.

Rural Development Minister Ross Finnie said:

"Our published target last year was to pay at least 50 per cent of eligible claims by December 21. We managed to pay 59 per cent.

"I expect, however, to have paid 70 per cent of eligible claims by December 21 this year, an important improvement on last year's payment performance.

"The Single Farm Payment is a critical plank in our drive to deliver a sustainable agriculture industry. Making payment in full and on time will help farmers and crofters to plan for a profitable future and I am determined to achieve that.

"While there are still some technical details to finalise before payments can begin I would urge all producers to ensure that they have met all the conditions for eligibility.

"Our priority now will be to focus on working with producers to resolve any problems."

Payments are being issued to producers who have successfully passed the Executive's eligibility checks.

Because of European Commission conditions attached to payments, farmers and crofters who have outstanding inspections or other eligibility issues cannot be paid until these have been resolved.

The Single Farm Payment Scheme is the replacement for historic arable and livestock direct support schemes in Scotland and this is the second year of operation. Farmers applied for the Scheme in May 2006.

Last year, the Executive achieved 59 per cent of payments by the target date of December 21.

The European Regulations fix a payment window that means payments can be made between December 1, 2006 and June 30, 2007.

Farmers with outstanding Single Payment queries concerning eligibility cannot receive payment until these have been resolved: unlike 2005, where the European Commission approved arrangements for an interim payment, there is no provision for advances in 2006 and, therefore, eligible claims will be paid in full.

The payments farmers will receive are net of an 8.5 per cent reduction for Modulation (EC Modulation 4 per cent, UK Modulation 4.5 per cent).

Page updated: Friday, November 24, 2006