The Scottish Government begged the EU for further flexibility in administrating cash to farmers amid the chaotic implementation of a new computer system, The Courier can reveal.
European Commissioner for Agriculture and Rural Development Phil Hogan has confirmed ministers asked for an extension to an early payment scheme that would allow advances to be paid after administrative checks even if on-site inspections had not been completed.
It comes as Courier analysis suggests the cost of the IT system, currently sitting at £178 million, means each payment will cost £8,279 to process. The average amount paid to farmers is £23,255.
In a letter to Perth-based MEP Ian Duncan obtained by The Courier, Mr Hogan said the commission had allowed member states to pay a higher rate of advance direct payments to help cope with “financial difficulties faced by farmers across the EU”.
He wrote: “It allows member states to pay advances after the finalisation of administrative checks even if the on-the-spot controls have not yet been finalised.
“I understand the Scottish Government would like to have a similar option for payments made in the regular payment period, i.e. after 1 December 2015.”
Mr Duncan, who is chairman of the Conservative policy group on the rural economy, said any confusion should have been cleared up “months ago”.
He added: “It is also unclear why the Scottish Government has asked the EU to extend the payment flexibility into December when Mr Lochhead wrote to me just last week saying ‘it does not help us’. Something is wrong with the Scottish Government administration of farm payments. Farmers are going to have a bleak Christmas unless Mr Lochhead sorts this out.”
A Scottish Government spokesman blamed new common agricultural payments for causing the requirement for new systems.
He said: “With more than 21,000 single application forms to process and around 1,300 farms to inspect, what would have been helpful is flexibility on the inspection requirements for payments to be made in the normal payment window after December 1 and we will continue to press the Commission on this, although time is running out for this to be of any benefit.
“Our aim remains to begin payments before the end of the year and once we are in a position to confirm the exact timescale we will do that many administrations across Europe are in a similar position to Scotland.”