A £20million crisis fund for farmers and crofters who have not yet received their subsidy payments will open for applications on Monday.
Details of the government scheme, which was announced by farm minister Richard Lochhead at last week’s NFU Scotland conference, were revealed yesterday.
Following consultation with banks, government will now offer fast-tracked interest-free cash advances to producers who have not received the first instalment of their subsidy payments and are not able to access support from their banks.
Under the scheme, farmers and crofters can get up to 60% of their Cap claim up to a maximum of £20,000.
Government also confirmed that as of Wednesday this week it had made almost 8,000 payments, representing more than 43% of eligible claims.
Mr Lochhead last night said: “I am aware that some farmers and crofters still waiting for a payment are facing financial hardship which is why the Scottish Government has earmarked £20million to provide a safety net for the sector at this difficult time.
“My officials have held extensive discussions with the banks and industry this week to design a support scheme that is quick and simple to access and helps those who need it the most while allowing the Scottish Government to focus on verifying and paying as many Cap claims as we can.
“The consensus is that most farmers and crofters are already being very well-served by their banks, which have offered to help more by, for example, waiving set-up fees. In light of this, the Scottish Government scheme is being targeted at those in genuine financial need but who cannot get support through their normal bank.”
He urged cash-strapped producers to approach their banks first and if their request for extra finance was declined to apply to the government scheme.
Application forms for the scheme will be available from the Rural Payments and Services website or by calling the RPID customer helpline on 0300 300 2222, which will be open today and tomorrow between 8.30am and 4.30pm.
To apply for support, producers must submit a copy of a formal letter from their bank declining support.
Government also yesterday urged farmers and crofters to contact rural charity RSABI in times of crisis and hardship.
The charity can be contacted via its helpline on 0300 111 4166 or by email to rsabi@rsabi.org.uk.