Press Release - Delay in 2007 LFASS payment impossible

National Beef Association Scotland has called on The Scottish Government Rural Directorate to complete 2007’s LFA Support Scheme payments before the end of the year.

It says Scottish livestock farmers will struggle to manage their businesses unless  they receive the £61 million they are due under LFASS rules by the end of 2007.

“The Department has told us that LFASS money will not be paid out this calendar year and that distribution could be delayed until June 2008 unless new Rural Development Programme (RDP) plans, which are to include the LFA Support Scheme, are agreed in Brussels much quicker than expected,” explained NBAS vice-chairman, Hamish McBean.

“The NBAS response was that this was not good enough. The rules quite clearly say that support payments must be issued in the same calendar year as the claim and LFASS claims for 2007 have already been completed.”

”The Scottish Government must appreciate that Scotland’s livestock farmers are in a desperate position and that immediate receipt of their LFASS cheque is essential if they are to maintain cash flow.”

 “Over 2007 sheep prices have plunged as a result of FMD controls, beef cattle prices have only been able to stay level, feed grain and fuel costs have rocketed, and overdrafts have reached screaming level.”

“The money that is coming in at the moment is being immediately swallowed by interest on overdrafts or meeting essential service bills. An LFASS cheque would ease some of this pressure but if it does not come through until, say June 2008, many businesses will simply go under.”

“Income levels, and cash flow plans, must be maintained and this year the LFASS cheque has an even bigger job to do. If Brussels agreement over the new Rural Development Programme is unlikely to be reached by the end of the year then the Scottish  Government Rural Directorate in Edinburgh must stick to the old rules governing LFASS payments and get them out before the end of December,” Mr McBean added.

For more information contact:

Hamish McBean, vice-chairman NBA Scotland.  Tel. 01309 651206