Funding for new farmers

23rd October 2013

Payments made under New Entrants Scheme.

Hundreds of new farmers across Scotland are set to receive a share of £2 million funding.

Rural Affairs Secretary Richard Lochhead has announced that payments from the Scottish Government’s New Entrants Scheme are now under way. The fund was set up to provide £2 million over two years to support new entrants and deer farmers who are excluded from Single Farm Payments under current EU rules.

Up to 637 farmers will receive payments of between £1,146 and £4,250 in two instalments. The first will reach bank accounts within days and the second will be paid in just under six months’ time, in early April 2014.

Mr Lochhead said:“New entrants are the future of farming, which is why the Scottish Government is doing as much as we can to support and encourage those wishing to get into the industry.

“I can confirm that up to 637 new entrants and deer farmers will receive financial assistance from the Scottish Government. We have worked very closely with the industry through the New Entrants Panel to agree payment allocations and ensure that the funding is deployed in the best way possible. It was therefore vital that this process was done properly, targeting those most in need.

“It is my firm view that new entrants should be eligible for Single Farm Payments and that current EU policy, which prohibits this, is flawed. I have always maintained that this Scottish Government funding is no substitute for direct support - it should, however, offer some help to those seeking to establish a foothold in farming until the new CAP arrives. Clearly, this can’t happen soon enough for our new entrants and it is right that we do what we can to provide some additional support in the meantime rather than no scheme at all.”

New Entrants Panel member Fiona Benton said:“We are pleased that the Scottish Government has committed its support to new entrants and have been able to offer backing under the New Entrants Scheme. The distribution of payments, we feel, has been done as fairly as possible avoiding dilution of payments, ensuring that a significant level of compensation is provided. The panel look forward to working with the Scottish Government to ensure that the new CAP is implemented with more support being offered to new entrants.”

A total of 806 applications have been assessed for the Scottish Government’s New Entrants and Deer Farmers Scheme. So far, 582 payments have been processed with another 55 approved subject to the provision of further information to support their application. Successful applicants will receive payments in two instalments – one in October 2013 and one as early as possible in the new financial year, in April 2014.

The New Entrants Scheme is subject to the European Union’s State Aid de minimis rules which state the maximum amount a business could be paid under all de minimis measures is €7,500 (about £6,350) per business over a 3-year rolling period, which is calculated as each business’ current financial year and the two previous financial years.

It was the unanimous view of the New Entrants Panel that each instalment of New Entrant Scheme payments should comprise a basic payment of £500 per business plus £25 per hectare, up to a maximum of 65 hectares or the maximum de minimis payment, whichever came first.

A total of 169 applications were unsuccessful, with:
• 74 applications rejected because of lack of land and activity information
• 21 applications rejected because they were farming less than 3 hectares (the minimum requirement)
• 24 applications rejected because applicants are already in receipt of more than £25,000 in Single Farm Payment
• 50 applications rejected because applicants have been paid farming subsidies in the past.