FARM leaders warned yesterday that as much as #250m of agricultural
support in Scotland was in danger of being ''disqualified,'' if
producers fail to meet this month's deadline for subsidy applications.
That was the urgent message issued from Scottish National Farmers'
Union headquarters at Ingliston, near Edinburgh, by the deputy chief
executive Tom Brady.
Following up to an earlier appeal by the Scottish Office, Mr Brady
revealed that more than three-quarters of farmers had still to send in
their claim forms. And he pointed out: ''The rules are harsh, with no
scope for pleading special cases.''
Appealing to farmers and crofters to make the completion of IACS forms
their ''top priority job,'' he added: ''It is frightening that 77% of
potential claimants have not submitted IACS forms, with only a week to
go.
''The absolute deadline for the Scottish Office Agriculture Department
receiving the forms to get full entitlement to support schemes is May
15. This year, May 15 falls on a Sunday, so post early.''
''Any farmers or crofters who don't have forms should check
immediately with their local Department office about the need to secure
arable and livestock payments with an IACS form.''
Meantime, a leading agricultural banker has advised caution in drawing
up plans for expanding farm businesses -- despite signs of returning
confidence and economic recovery in the industry.
''A lot of income in farming is still artificial,'' said Henry Graham,
agricultural services manager with the Clydesdale Bank, who was speaking
at the opening of the two-day Ayr Show, the industry's first major 'shop
window' of the year.
''The amount of direct subsidy last year was #50m more than Scottish
net farm income. We have to pay close attention to that fact and realise
that this support is artificial. Indeed, there are several parallels
with the late 1970s, when again strong support from Europe fuelled high
level investments in machinery, buildings, and land.
''These same factors subsequently left some businesses heavily
over-borrowed in the 1980s, and made the survival process extremely
demanding with the high interest rates of the last five years.''
There was a risk of this same scenario repeating itself today, with
land prices up 20%, new tractor registrations up 30%, the industry's
interest bill down by 30% compared with 1992, and net farm income up by
24% last year.
Against that background, Mr Graham said the message for farmers must
be to plan and carry out new developments with a ''degree of caution.''
It was only necessary to look at how long-term interest rates had
increased by 2% in the past two months to appreciate how quickly the
economic climate could change.
* THE Scottish NFU have formally complained in writing to the European
Commission about the aid given to French pig producers by their
Government.
Commenting on the submission, pigs convener David Whiteford said:
''The French action has caused much anger and resentment in Scotland,
because of its distorting effect on the entire EU market for pigmeat.
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