Rural Payments and Services

On 22 February, the European Commission announced it will increase the level of state aid countries can provide to support farmers.

The Agricultural de-minimis Regulation State Aid limit will increase from 14 March 2019, with the maximum aid amount that can be distributed to an agricultural business within their three most recent financial years rising from €15,000 to €20,000.

In Scotland, state aid de-minimis is used for a number of purposes and includes the interest farmers receive on any national loan payments (such as NLFASS / NBPSS) and emergency payments such as weather aid.

For the national loan schemes, it is the interest foregone (calculated at market rates) and not the actual loan amount that is the state aid element.

For state aid purposes the interest amount is calculated from the date the loan is paid until the date the loan is fully repaid – the interest rate applied is the rate detailed in the particular loan scheme offer letter.

Individual businesses are responsible for keeping a record of all state aid they receive under such schemes and must make sure the total aid is less than their current financial year deminimis level and their previous two financial years combined i.e. €20,000 (from 14 March).

For the national loan schemes, we supply each farmer and crofter with an estimate of the state aid de-minimis they have received from national loan schemes in the current and two previous financial years. This is based on Scottish Government financial years (April/April).

Farmers and crofters concerned about how the agricultural de-minimis regulation may affect their business should seek professional independent advice.

More information is available here.