Farming officials say news that payments to help hard-pressed farmers will be paid two weeks early are encouraging. 

However, National Farmers’ Union (NFU) Cumbria council delegate Alistair Mackintosh has added a warning that the Rural Payments Agency (RPA), which administers the funding allocation, must not lose focus in getting Basic Payment Scheme (BPS) payments out on time.

After extensive NFU lobbying in Brussels and Westminster, Defra announced in September that dairy farmers in England will share £15.5 million and farmers in Wales will receive a total of £3.2m from the EU dairy fund. 

But Mr Mackintosh said it was important to keep this in context: “The average support payment will be £1,800, and dairy farmers, on average, are around £6,000 a month worse off compared to this time 12 months ago,” he said.


Alistair Mackintosh Mr Mackintosh said all sectors were suffering cash flow problems, and it was important that feedback was given on whether or not farmers had received farm payments.

“I am still waiting for my Environmental Stewardship (ES) payment. When I telephoned to find out where it was, I was told it was still being processed. There are still a lot of people waiting for this payment, despite being told to the contrary by the RPA,” said Mr Mackintosh.

NFU president Meurig Raymond said: “News that the first payments have already been made to those eligible dairy farmers in England and Wales is encouraging.

“It is important now that this money is distributed on time and without the burden of unnecessary red tape.

“I and my fellow NFU council members stressed to RPA chief Mark Grimshaw at our last meeting in October that all sectors are suffering cash flow problems and to ensure that they are on track to start making full BPS payments in December.”

NFU dairy board chairman Rob Harrison said: “It’s clear that the impact of the market downturn on farms is different and relates to which milk contract or milk buyer a farmer is supplying. Farmers who wish to offer financial support to those most in need should contact Royal Agricultural Benevolent Institution (RABI) or the Farming Community Network

“We will continue to lobby Government and urge processors and retailers to work with dairy farmers for more fair and transparent contracts, stronger producer groups and the development of a futures market.

Farming Minister George Eustice said the first payments have been made to over 10,000 farmers across England, Scotland, Wales and Northern Ireland – three-quarters of all eligible farmers and amounting to almost £19.2 million. Payments will continue through November and December.

The UK government secured £26.6million in support from the European Commission in September – the third largest support package among member states – to help dairy farmers affected by the current global volatility in milk prices.

UK ministers agreed to pay a flat rate linked to milk production and for the Rural Payments Agency (RPA) to pay out the money on behalf of the administrations in Scotland, Wales and Northern Ireland as well as England. The flat rate for dairy farmers in England, Scotland and Wales is just under 0.176p per litre.

Meanwhile, the RPA is on track to make full payments on Basic Payment Scheme 2015 claims as soon as possible within the payment window, making the majority of payments in December and almost all by the end of January.