Farmers and crofters will be offered up to 95% of their Less Favoured Areas Support Scheme payment in the form of an interest-free loan.

Loan offers are being sent out to 10,000 claimants, with further offers to be sent in the coming week.

Those who accept their offer by 17 January should expect payment by mid-January, according to the Scottish Government.

A similar scheme in 2018 delivered payments worth more than £52m to more than 8,400 hill farmers and crofters.

Rural economy secretary Fergus Ewing said: “I have continually said that we should support those who need support the most. Even though we are on track to make LFASS payments this spring, I want to make sure those farming on marginal land can go into the new year with as much financial security as possible.

“Our rural economy is on the front line of the potential impacts of Brexit, with remote and rural areas likely to be hit the hardest if we have to leave the EU and lose tariff-free and barrier-free access to trade.

Certainty

“This offer to around 10,000 farmers and crofters will therefore offer a degree of clarity and certainty.

“As with the recent National Basic Payment Support Scheme, which has invested more than £340m into the rural economy since October, it is important for farmers and crofters to understand that no one would have to return this payment in the event of a no-deal Brexit.

“This is their money and they are entitled to it.