THE Scottish government will offer loans to help farmers cope with the “potential catastrophic consequences” of a no-deal Brexit.

A new scheme being announced today will allow eligible farmers to borrow up to 95 per cent of their payments under the Basic Payment Scheme 2019 from early October.

The Scottish government claims that the loans available to eligible farmers are more generous than under a similar scheme last year, which more than a quarter of a billion pounds to at least 13,500 farmers following months of adverse weather.

Announcing the scheme, Rural Economy Secretary Fergus Ewing said: “Farmers are the backbone of Scotland’s rural economy and, with the UK edging ever closer to leaving the EU without a deal, it is absolutely essential that we provide as much support and certainty as we can.

“Recognising the potential catastrophic consequences of no deal on our agricultural sector, I’m also confirming that loans will be offered at the increased rate of 95 per cent, delivering more money to farmers through this mechanism than ever before.”

Mr Ewing said there had “never been a more important time” for farms to prepare for whatever type of Brexit comes about.

“As such, I would encourage all eligible farmers, crofters and land managers to accept this offer to enable us to get your payment out to you as soon as possible,” he added.

The Basic Payment Scheme, which would be replaced by the government loan, is available to farmers allocated payment entitlements based on the land they farm and the type of activity on it.

The National Basic Payment Support Scheme will operate on an opt-in basis, offset against existing payments. Loan letters will be issued in early September, with payments expected early the following month.