Failure by ScotGov to deliver LFA payments widens rural economy hole by £65 million

The hole in Scotland’s rural economy is to get wider as Scottish Government will miss its traditional payment window for delivering lifeline payments to the hill farming sector.

Payments made under the Less Favoured Areas Support Scheme (LFASS), a crucial element of Scotland’s Rural Development Programme, have traditionally been made in the first two weeks of March, putting more than £65 million into the rural economies of some of the more remote and vulnerable parts of Scotland.

Despite Scottish Government claims that LFASS payments will be running ‘a few weeks behind schedule’, NFU Scotland believes the calamitous failure of Scottish Government’s £178 million IT system to deliver the main CAP support payments will mean substantial delays in hill farmers receiving this important funding stream.

That means the hole in Scotland’s rural economy, where farmers use their funding to invest in the businesses and support feed, seed and fertiliser suppliers, machinery dealers, vets, and other associated trades is getting wider.  

If outstanding basic payments of around £300 million are added to the LFASS budget of £65 million, then £365 million that would traditionally be circulating in Scotland’s rural economy at this time of year is missing with no clear indication or timetable from Scottish Government when that will be rectified.


NFU Scotland President Allan Bowie said: “What is particularly frustrating about Scottish Government’s failure on LFASS delivery is that this is not a new scheme and it is not a new budget, therefore excuses about IT and complexity of the new CAP are meaningless.

“The LFASS budget has been ring-fenced at £65 million, something which NFUS has lobbied hard for, and the scheme rules for 2016 are relatively unchanged from when the scheme was introduced 15 years ago.

“Although Scottish Government has said LFASS payments will only be delayed by a few weeks we don’t believe them.   Cabinet Secretary Richard Lochhead must tell farmers and crofters before the Parliament goes into recess for the elections an exact date when LFASS payments will be paid.”  

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Contact Bob Carruth on 0131 472 4006