Scottish BPS Loans Begin

The Scottish Government has announced it has started to make payments under the National Basic Payment Support Scheme (NBPSS).  Rural Economy Secretary, Fergus Ewing, has confirmed that nearly 12,000 farmers and crofters received just under £246 million pounds between them on Friday 4^th November.  Applications received after 19^th October are still being worked through and loans will be sent out in due course.  Some 5,000 farmers have received an ‘offer’ letter but have not yet replied; it is still possible for them to take up the offer if they want to.  Further offer letters will be sent out as and when 2016 BPS eligibilty is clarified.

The NBPSS has been put in place by the Scottish Government to make an interim payment for the 2016 Basic Payment.  Although claimants’ eligibility to the 2016 BPS has to be clarified before a loan offer is made, the Scottish Government has made an early decision that its verification process will not be advanced enough even to be able to make part payments using EU funds until at least next year and therefore payment is being made through a national-funded scheme.  The scheme is set up such that payment under the NBPSS should be less than the 2016 BPS and when claims have been fully verified the balance payment will be sent to claimants.  No interest will be payable on the loan, and it will be classed as de minimus state aid.