The competency of the Scottish Government’s new National Loan Scheme was questioned yesterday following reports that letters have been distributed to farmers containing incorrect information.
The loan scheme is being offered to approximately 17,000 of the 18,300 farmers and crofters who have applied to the 2016 CAP support schemes. The loan scheme will offer applicants 80 percent of the support they would expect to receive and was meant to be due in the first few weeks of November.
It has emerged that for some farmers not all of the region 3 land (region 3 typically being hill ground) has been included in the calculations for their national loan.
Scottish Government has realised the error but only after the letters had been printed and sent for distribution. The hundreds of farmers and crofters affected will receive new loan offer letters and will be given an extra week (until 19 October) to respond.
Commenting Liz Smith MSP said:
“It was only last week when it was revealed that over 90 farmers in Perth and Kinross were still awaiting payment for initial CAP funds. Now the National Loan Payments, effectively a sticking plaster solution, are found to have been calculated wrongly.
“It is highly likely that farmers across Perth and Kinross, Fife, Stirling and Clackmannanshire will be affected by this latest botch from the Scottish Government.
“For these farmers this will have caused additional confusion which is particularly unhelpful at an already difficult time.
“The Scottish Government has mishandled this process from the start and this latest failure calls into question their ability to properly manage the needs of the industry.”