A leading independent property consultancy with expertise covering a broad spectrum of property related services

Farmers Facing Significant Unexpected SFP Cut

CKD Galbraith said today Scottish farmers are facing a significant drop in this year's Single Farm Payments due largely to a reduction in the CAP budget.

Farmers are due to receive their 2014 payments from December 2 this year and the combined reduction in payments could result in around 50million less going into the Scottish rural economy.

Gordon McConachie, agri-business adviser for CKD Galbraith, said:

"Farmers are now facing a situation where payments could be considerably lower than they were expecting due to a devaluation of around 24% to their SFP entitlements for 2014.

"In one instance a value of 355.16 was reduced to 273.23 a drop of some 23.07%. Net of modulation the cash position will be around 14% less.

"This has crept up on many farmers and will come as a nasty surprise on top of cereal prices being down around 40% on the year.

"Farm businesses are facing a time of unprecedented change due to CAP Reform and it is firmly in farmers' interests to ensure they have comprehensive information and advice."