The Scottish Government insisted yesterday that payments from the £2million fund it has set up for new entrants and others excluded from the single farm payment regime are still on track to be made this month.
Concerns had been voiced after an official had earlier said that, due to the large volume of applications received, it was still checking whether the bids were acceptable or not against the eligibility criteria set by the new entrants panel, a group which involved government and agricultural sector representatives.
“We do hope to get something out as soon as we can to let people know whether they have been successful or not, but it looks like this will be more into the middle or end of October before we will be in a position to do so,” they said in an e-mail.
The Press and Journal, however, understands that as claims have been validated the payment has been authorised which would allow a speedy distribution once all are finalised.
A government spokes-woman said it still expected the cash to go out as expected in October.
The level of payments will, however, be limited because of EU state aid de minimis rules which restrict handouts to 7,500 euros (about £6,300) over a three-year period.
The new entrants’ cash is available for two years, which is likely to mean first year payments being capped at about £3,000.
That has been greeted with dismay by several potential recipients, including John Fyall, who farms at Sittyton, Newmachar.
He questioned why the rule was being imposed on new entrants who had been automatically denied the right to thousands of pounds of single farm payments from 2003. He also said the cap had been removed for some recipients of the recent distribution of weather aid.
Mr Fyall said the delay to Cap reforms meant new entrants would have to wait until 2015 to access the subsidies that other farm businesses had received for years.
He branded the funding being made available paltry, and urged the government do more to make sure the discrimination faced by new entrants is dealt with sooner.
The government spokeswoman added: “This Scottish Government firmly believes that new entrants should qualify for direct support from the EU, and that current European policy – which prohibits them from doing so – is flawed. Our funding is aimed at offering a helping hand until the new Cap arrives, which can’t happen soon enough for our new entrants.”
It has previously said the £2million it is putting up would go nowhere near to plugging the gap left by the Cap, but would provide some help to those in need.