Real prize is bespoke farming policy for Scotland
Farming is a longterm business and certainty is a crucial element of planning for the future.
As things stand, the UK will “leave” the EU on 29 March. But in effect, that date simply starts the time-limited “implementation period” to 31 December 2020.
Until then, agricultural policy in the UK and Scotland will look, taste and smell much like the common agricultural policy (CAP) – because it will be the CAP.
Whilst this is important for continuity and stability through transition, NFU Scotland has always been clear that the real prize from exiting the EU is to develop and implement new agricultural policies that are bespoke to the unique needs of Scotland.
But much of what should be a pragmatic process has become very politicised – putting at risk the process to establish a new agricultural policy.
That is exactly why NFU Scotland has taken such an active role.
Three big steps are needed to deliver certainty.
The first big step now in place is that Scottish Government can make support payments to farmers and crofters for scheme year 2019.
Legislation has been passed that will “cut and paste” all EU rules and regulations on day one of EU exit.
This carries over the legal ability to make payments through the various direct support schemes that operate under Pillar
1 of the CAP, as well as payments made under the Scottish rural development programme (Pillar 2), such as the less favoured areas support scheme (LFASS).
The uncertainty around this is that the UK and Scottish governments currently disagree on which parliament has authority to pass this “cut and paste” legislation. The impending Supreme Court judgment must settle whether the UK government’s Withdrawal Act or the Scottish Government’s Continuity Bill has that right.
If the Supreme Court rules in favour of the Scottish Government, then its legislation will allow for the continuation of payments for the 2019 claim year. If the Supreme Court rules against the Scottish Government, then the UK government’s act will provide the necessary legal cover for these payments to be made
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“One absolute certainty amid the apparent chaos is that NFU Scotland will not relent in its pursuit of securing the best possible outcome for all of Scottish agriculture”
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“No-one should be effectively blackmailed into a choice between the
in payment year 2019. The Withdrawal Act provides a safety net if the Continuity Bill falls.
Secondly, we need certainty that the Scottish Government can deliver support to farmers for scheme year 2020.
The EU text around the direct payments regulations only applies up to 2020 – the end of the current round of the CAP.
In addition, the draft agreement on the withdrawal of the UK from the EU says that direct payments to farmers under CAP support schemes shall not apply in the UK for claim year 2020.
This is because of the way the EU finances the CAP.
Due to an oversight in the drafting of the UK Agriculture Bill, which is currently going through the parliamentary processes at Westminster, a clause to allow for continuation of support payments in 2020 was left out. MPS are currently considering an amendment to correct this for England.
Similar legislation is required for Scotland.
In its recent Stability and Simplicity consultation document, the Scottish Government stated its preference was to continue with current schemes and payments, with some minimal changes, through an agricultural transition from 2019 to 2024.
At present, the Scottish Government has not confirmed that it intends to pursue primary legislation that would allow for the continuation of direct (Pillar 1) support in and beyond 2020. So, it is a concern that there is currently no legal vehicle for the Scottish Government’s Stability and Simplicity transitional model to be delivered –nor for payments to be made to farmers and crofters for claims made under CAP schemes in 2020 or beyond.
However, it is within the competence of the Scottish Parliament to introduce likefor-like primary legislation to allow for this continuation in and beyond 2020. This can and must be done.
And the third area requiring certainty is around the ability for Scottish Government to develop, implement and deliver support under a new (i.e. “non-cap”) agricultural policy in Scotland for 2021 and beyond.
The arrangements for 2019 and 2020 largely mean that agricultural support in Scotland will continue to be entirely tied to existing CAP rules.
However, in order to develop and implement a new, “non-cap” policy from 2021, primary legislation is required.
Along with its members, NFU Scotland continues to develop its post-brexit proposals as set out in the policy document Steps to Change – A New Agricultural Policy for Scotland.
Stumbling blocks to policy determination already exist.
The Scottish Government has identified various issues with the UK Agriculture Bill and has declared that it will not take a Schedule in the Agriculture Bill unless these issues are resolved. NFU Scotland shares some of those concerns.
The Scottish Government is keeping open the option of introducing its own Scottish Agriculture Bill to the Scottish Parliament.
If it were to pursue this, a Scottish Agriculture Bill could be introduced to the Scottish Parliament in autumn 2019, in order to go through the parliamentary processes and receive Royal Assent in time for the 2020 payment year.
If this option is taken forward, it would provide the same legislative vehicle that is on offer via the UK Government’s Agriculture Bill for Scottish Government to make payments in the 2020 payment year and for Scotland to subsequently develop and implement a new “non-cap” agricultural policy from 2021 or beyond.
Farming is a long-term commitment and given the wide uncertainties that remain around Brexit for the farming and crofting communities, very clear and solid commitments by governments in Holyrood and Westminster are required.
That is why NFUS has attended all political party conferences this year; spent the equivalent of 45 working days in Holyrood and Westminster and given evidence to parliamentary committees on no fewer than 17 occasions in the past 12 months.
One absolute certainty amid the apparent chaos is that NFU Scotland will not relent in its pursuit of securing the best possible outcome for all of Scottish agriculture from the Brexit process and beyond. l Jonnie Hall is NFU Scotland Director of Policy