Farming subsidy payment deadline not extended by EU
The Scottish Government must pay 95% of farmers before midnight on Friday.
The Scottish Government will not get an extension to the EU farm payment window before the midnight deadline on Friday, STV News has learned.
The devolved administration approached the European Commission formally on Tuesday seeking a four-month extension.
European rules state at least 95.24% of Common Agricultural Policy (CAP) payments must be handed out before the end of the month.
Civil servants estimate they will fall short of the threshold and have only paid 90% of applications.
CAP payment progress:
Commission sources told STV News: "We understand that there was a significant acceleration of payments last year and this week and we wait to see what the execution rate is at the end of the day."
STV News understands the Commission may grant a retrospective extension only if the Scottish Government can demonstrate a significant improvement by close of business on Friday.
A spokesman for the Scottish Government said: "We await a final determination from the European Commission."
Rural economy secretary Fegrus Ewing said: "We have made a clear commitment to do all we can to make the 2016 payments by the end of today and we are doing all we can to deliver as many payments as possible.
"I expect the vast majority of farmers and crofters will receive all their basic and greening payments by the end of today. Although it is not possible at this stage to guarantee precisely the level of payments that will be made, the latest figures are showing that we have made progress.
"As of close of business last night (June 29), we have made BPS, Greening and Young Farmer payments to 15,991 farmers and crofters valued at £331m. This represents around 87.3% of expected total payments for those schemes.
"It's important to recognise that through the national loan scheme and payments made to date, the vast majority of farmers and crofters have received their money.
"We recognise that while we are making progress, we still need to do better. Our priority remains completing payments for farmers and crofters as quickly as possible in the coming weeks and officials are working incredibly hard to do just that - and will continue to do so beyond today to make as many outstanding payments as quickly as possible."
It is the second year in a row the Scottish Government has failed to hit the target. Last year, an extension was granted as an "exceptional measure" but it was the new deadline was still missed.
The Scottish Government estimates last year's delay will result in a £5 million fine from the EU.
A further financial penalty may be imposed if the deadline is not kept or retrospectively extended next week.
The delays in payments have been linked to a new £178m IT system.
The UK Government has comfortably met Friday's deadline with 99.2% of payments made in England.