Tag: LFASS

The Scottish Government has announced it will be offering a nationally-funded loan for the 2017 Less Favoured Area Support Scheme (LFASS).  Similar to the BPS, the processing of payments is not at a stage at which advance payments out of EU funds would be permissible, therefore the loans will be made from domestic funding.  Eligible hill farmers and crofters will be offered loans of up to 90% of their estimated LFASS payment.  Balance payments will be made once the claims have been fully processed.  Offer letters, will be sent out in batches, commencing at the end of February and continuing as claimants’ eligibility is confirmed.  The first payments will be made at the beginning of April.  The scheme should pay around £55 million to about 11,275 businesses.

Farmers and crofters will receive more through LFASS payments for 2018 than expected.  The Scottish Government has confirmed that hill farmers will receive 100% of their 2017 payment in 2018 rather than the 80% that was previously announced.

Readers will recall that under EU rules 2017 was supposed to be the last year that the current LFASS  would have been able to operate, as the EU is moving to new ‘Areas with Natural Constraints’ classification.  However, the Scottish Government took up the option to keep the scheme and make ‘parachute payments’ which effectively allowed it to make payments of 80% of those received in 2017 for the 2018 year.  But following a decision by Brussels to defer any LFA changes until 2019, farmers and crofters will now receive 100% of their payment.