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Farmers face up to BPS bridging loan rejection

Many farmers are facing cashflow problems after those receiving hardship payments from the government were told that they won’t be eligible for a BPS bridging loan, reports Farmers Weekly.

Delivery of the 2015 Basic Payment Scheme (BPS) in England was set back once again, as the Rural Payments Agency (RPA) rejected calls for a bridging loan to cover 50% of outstanding BPS claims.

An RPA statement sent to land agents simply read:

If your client has already received a hardship payment, they won’t get a bridging payment.

However, many farmers are reporting that they were unaware that the bridging loan scheme would not go ahead as planned, leaving them with severe cashflow problems in the short term. While others are reporting that they did not know that it would take so long for the BPS payments to be made in full. The RPA has subsequently said that all payments will be made by June.

A spokesman for the RPA said:

We know these payments are important for farmers. Bridging payments are for those remaining farmers who have yet to receive any money.

We are continuing to work seven days a week to complete our processing of remaining 2015 claims. We’ve paid out over £8m hardship funds to about 500 farmers and continue to work closely with the Farming Community Network.

For more news, views and reviews on funding and support for the UK agricultural sector follow us on Twitter @RBSIF.

 

 

 

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