Hill farmers and crofters will soon receive loan offer letters for the Scottish Government’s National Less Favoured Area Support Scheme (LFASS).
The scheme will offer more than 10,000 eligible farmers and crofters up to 95% of their LFASS payment from January.
A similar scheme in 2018 delivered £52 million to more than 8,400 producers.
Announcing this year’s scheme, Rural Economy Secretary Fergus Ewing said the loan offer letters would offer “a degree of clarity and certainty” to those farming in remote and rural areas.
“Even though we are on track to make LFASS payments this spring, I want to make sure those farming on marginal land can go into the new year with as much financial security as possible,” added Mr Ewing.
“As with the recent National Basic Payment Support Scheme, which has invested more than £340m into the rural economy since October, it is important for farmers and crofters to understand that no one would have to return this payment in the event of a no-deal Brexit. This is their money and they are entitled to it.
“I would encourage any eligible hill farmer or crofter to return their loan acceptance as soon as possible to enable us to get your payment out as quickly as possible.”
The Scottish Government said loan payments will be made from the middle of January to anyone who returns their loan offer acceptance letter by January 17 2020. NFU Scotland welcomed the news but said the LFASS scheme faced a 20% cut in its overall budget for 2019, so farmers were in line for a payment reduction compared to 2018.
The union’s director of policy, Jonnie Hall, said: “We encourage all those receiving loan offers in the first tranche, some 10,000 or so, to opt in. Given the ongoing uncertainties and the challenges of mid-winter cash flows, the intent to make loan payments as soon as possible thereafter is good news. We continue to work with Scottish Government to ensure that the first tranche of the convergence dividend, some £90m, is also on track to be delivered by the end of March 2020.”