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Support for agriculture
10/06/2009
A package of new measures to support agriculture and the rural economy was unveiled today.
Cabinet Secretary for Rural Affairs Richard Lochhead announced to Parliament:
- £15 million over two years to support hill farmers through changes to the Less Favoured Area Support Scheme (LFASS)
- The appointment of Brian Pack to lead a review of the Single Farm Payment (SFP) scheme to ensure it is delivering support where it is needed
- Increase in payments for slurry schemes and further support for greener farming
- Additional support for new entrants and community facilities
Mr Lochhead also announced some further operational improvements to the Scotland Rural Development Programme (SRDP)'s Rural Priorities including greater simplification of the online application process.
These changes come in light of Peter Cook's review of SRDP, which is also published today.
The Cabinet Secretary said:
"The Scottish Government recognises the huge contribution rural businesses make to our economy and that agriculture underpins food production and our environment.
"Earlier this year I asked Peter Cook to undertake a wide-ranging review of SRDP - a key part of our support for rural Scotland - and with consultations on LFASS and parts of the Common Agricultural Policy (CAP) also recently completed, now is the time to further shape our vision of future financial support for Scottish agriculture.
"Principally, I recognise the pressing needs in Scotland's uplands, where rural communities and the environment depend on active hill farming - sheep farmers in particular; we will focus £15 million of funds available though LFASS changes over the next two years to ensure that more support is directed to where it is needed most.
"I also want to be absolutely sure that SFP - which currently distributes almost £450 million to our farmers each year - is delivering support for those who need it most and is also producing tangible public benefits.
"At present, some farmers continue to receive significant sums of public money despite being less active than before while others including new entrants to farming receive nothing because of the historically-based payments system. This is not acceptable.
"That is why I have asked Brian Pack, a respected figure in Scottish agriculture, to review the SFP system. I hope that he will be able to make some recommendations later this year and deliver a comprehensive report by Easter 2010.
"The immediate needs of the hills can be met through means other than Article 68, and it would be wrong to start to use it now given the volatility in the global markets. I have therefore decided that there is no need to extend the use of Article 68 of CAP at present in favour of a quicker solution.
"I'd like to thank Mr Cook for his review, an important piece of work which signposts the way forward for funding in rural Scotland.
"Like me he has many good things to say about SRDP, which is now delivering real benefits for rural Scotland, but we must also acknowledge that not everything has ran smoothly since its inception. I am therefore happy to accept the majority of his recommendations to further improve the programme.
"The detailed, wide-reaching package I am announcing today will set the tone for how we support Scottish agriculture in the short term and looks forward to the sort of changes we will need to make in the longer term with big changes in the Common Agricultural Policy likely after 2013.
"Today should be seen as a real landmark in delivering the best possible support for rural Scotland and forms a significant part of Scotland's economic recovery."
Peter Cook added:
"I welcome the Cabinet Secretary's aim to outline a vision for the future funding of Scottish agriculture; in making recommendations on the future shape of the SRDP it is clear to me that it cannot be viewed in isolation from the likely future structure of the LFASS, SFP and world markets."
"The SRDP Rural Priorities scheme is delivering investment for our rural economy but elements have certainly been contentious since its introduction and my review makes specific recommendations on improving access for those potentially disenfranchised by the application process."