Hundreds of Farms could miss chance of Fair Payments
08/03/05

The majority of Scottish farmers who wish to apply to the Single Farm Payment National Reserve must have their applications in by next Monday, 14 March. Five of the eight categories, which will cover the vast majority of National Reserve applications, close on this date.

So far, the Scottish Executive has received applications from 1080 farm businesses. However, NFUS believes the number that could apply is far higher and fears that many will lose the chance unless they act now.

The new Single Farm Payment Scheme came into effect at the start of this year, replacing the individual subsidy schemes. Farmers will receive an annual payment based on the activity on their farm between 2000 and 2002. Because many farm businesses will have developed or expanded between the reference period and the start of the new regime, there is potential for farmers to be disadvantaged by the change. The current activity on the farm may bear little resemblance to that during the period used to calculate this year's and future payments.

The National Reserve is funded by scaling back payments to all producers to create a budget to address these situations and ensure producers move into the new regime on an equal footing. The scale-back in payments is envisaged at three per cent, however this figure could rise depending on the number of farmers who apply to the national reserve.

The NFUS National Reserve Helpline, 0131 472 4015, is still open to answer members' questions and has received hundreds of calls so far. NFUS is urging all its members to double check the Executive's estimate of the SFP entitlement and apply to the National Reserve before Monday if they need to.

NFUS Policy Director Scott Walker said:

"The key question for farmers to ask themselves is "Has the activity on my farm, which would have affected CAP subsidy, increased since the reference period?" If the answer is yes, it is very likely that, with supporting evidence, they can make a successful claim to the National Reserve. But time is running out.

"Applications for the main categories, such as those covering business expansions since the reference period or new entrants, must be in by Monday. For these individuals, the rest of this week is the only real chance to ensure their Single Farm Payment is fair, as the figure arrived at this year will be set in stone for the years to come."