A survey has found that 85 per cent of farmers in Teignbridge suffered financial problems due to delays in the payout of the 2005 Single Farm Payment.
The survey – conducted by Richard Younger-Ross, Teignbridge MP – found that 67 per cent of those questioned reported severe cash flow problems, with six per cent being put 'on stop' by their suppliers and 12 per cent claiming to be in trouble with the bank.
Mr Younger-Ross said he decided to carry out the survey after being contacted by a number of farmers complaining about forms not arriving, lengthy delays in payment, financial hardship and confusion over the paperwork.
Of the 120 questionnaires sent out 53 replied – a return rate of 44 per cent. Mr Younger-Ross said that despite the relatively small sample size the survey highlighted a highly-unsatisfactory situation which had been damaging to farmers.
By December 2006, 40 per cent of those questioned had still not be paid in full, while 30 per cent were still waiting for their Hill Farm Allowance. Farmers said that the delays caused problems with forward planning.
Some were forced to sell stock earlier than planned in a lower market and one farmer reporting losing a discount on farming supplies. The forms for the Single Payment Scheme and the Hill Farm Allowance were criticised as 'very complicated' by 42 per cent.
A fifth hired a consultant to sort it out for them, while 71 per cent said there was no way of checking whether they had received the right amount. Three-quarters of respondents rang a helpline, but only a minority – 22 per cent – found it helpful. Farmers cited a poor grasp of farming terms among helpline staff, who were often only able to quote from information booklets.
Defra and the Rural Payments Agency got a pasting for poor communication. A resounding 871/2 per cent expressed dissatisfaction, saying they got more information from the press and Farmers' Weekly.
Mr Younger-Ross said that, far from simplifying the process, the introduction of the Single Payment Scheme had been plagued with problems, bringing farmers to the brink of bankruptcy.
'It is the farmers who are forced to deal with the fallout. Many have been forced to take out loans to cover them until payment materialises and some are up to their maximum overdraft facilities,' he said.
The resulting fiasco had led to a breakdown in trust, he said, with some farmers believing the government sees them as the enemy.
After pressure from MPs, Lord Rooker, Minister for Sustainable Farming and Food, had agreed to hold weekly surgeries to discuss individual cases, with the first one held last month.
Mr Younger-Ross urged any farmer experiencing problems, who hasn't already done so, to get in touch.