To ask the Scottish Government what progress it has made in delivering the national CAP loan scheme.
The National Basic Payment Support Scheme 2016 was announced to Parliament on 13 September 2016. Delivery of the scheme has proceeded on the timescale set out in the announcement. Loan letters were posted to 17,324 farmers and crofters, the vast majority of potential applicants, on 27 September 2016. These letters offered a loan of 80 per cent of each individual’s estimated 2016 Basic and Greening payments up to a maximum of 150,000 euros. Recipients of these letters are invited to respond by 12 October 2016, in order to receive their loan in the first half of November 2016.
Regrettably, after the letters were sent, the Scottish Government uncovered a miscalculation affecting a small percentage of businesses which had not been picked up during the sample checking carried out in advance. In these cases, the loan calculation did not take full account of their Region three land, resulting in them being offered a smaller loan amount than they were entitled to.
Swift action has been taken to ensure this does not affect the timetable for getting the correct loan payments to those farmers. Area offices began phoning affected businesses on 28 September 2016 to explain and apologise for the situation. Revised loan letters will be issued to the affected farmers and crofters during the week beginning 3 October 2016, with a new return deadline. As long as they respond to the second letter by the new deadline of 19 October 2016, there will be no impact on the timing of their loan and they will receive a payment for the correct loan amount in the first half of November. If any affected farmer or crofter is unable to respond by the new deadline, the Government will still honour the correct loan amount but the timing of the payment will depend on the time taken to respond.
The Government has also checked that for other businesses with Region three land, and for all region one and Region two land, the calculation has been carried out correctly.
As set out in the initial announcement, the small number of businesses for whom it was not possible to make a loan offer at this stage, because the complexity of their case required further work to be carried out, will receive their offer at a later date, and the Government will also write to any Basic Payment applicants who are not eligible for CAP payments and are therefore also not eligible for a loan.