Drummond Laurie Chartered AccountantsfarmIn July 2016 the European Commission allocated money to support livestock farmers in light of the on-going market difficulties they face. An element of this money has been allocated to Scottish dairy farmers to ‘foster economic sustainability, market stabilisation and deal with long term structural problems’.farm 3

The scheme has four rates, three which are based on the price farmers received for their milk during the period Jan–Aug 2016 and the fourth is paid to farmers located in Kintyre, Bute, Arran, Mull and Gigha.

The payment bands are as follows:

  • Procedures in Kintyre, Bute, Arran, Mull and Gigha will receive £4,000 each
  • Average milk price payments:
    • Farmers paid less than an average of 20ppl will receive £3,250 each
    • Farmers paid an average between 20ppl and under 25ppl will receive £2,000 each
    • Farmers paid an average of 25ppl or more will receive £1,000 eachfarm 2

The guidelines here can be referred to as to how the average milk price should be calculated for this.

Although the scheme is open to all dairy farms in Scotland, there are conditions which need to be met and in summary you need to be doing the following at present or be willing to do:

  1. Forward milk production profiling
  2. Milk recording using a company offering a service in accordance with ICAR Recording Guidelines for at least a year

Applications for the scheme need to be in by 5pm on 1st May 2017, so you need to act fast.  The aim is for the money to be paid by 30th June 2017.

The application form can be obtained from the Scottish Government website here

At Drummond Laurie we continue to work with farmers, providing specialist taxation, accountancy and business advice.  Our agricultural team have in depth knowledge and personal experience of the agricultural sector and provide the expert advice that is required to help you run your business.

If you would like to discuss any agricultural related accounting query please contact Margaret Bunyan on 01324 441266 or email margaret.bunyan@drummondlaurie.co.uk.