The Scotsman

Calls for radical measures to increase productivi­ty

- By BRIAN HENDERSON bhenderson@farming.co.uk

While the growth in Scottish agricultur­al productivi­ty might be ahead of that in England, it still lags well behind that achieved in many other countries around the world – and radical measures, including boosting education in the sector, reducing levels of direct support and changes to the tax regime could be required to improve performanc­e.

A report drawn up by Scotland’s Rural College (SRUC) and released this week revealed that Scottish agricultur­al productivi­ty had shown “erratic but positive” growth to average 1.5. per cent between 2000 and 2015 – but while this was above the UK average of 1 per cent, it was below that of France (2.4 per cent) and Denmark (2 per cent).

Commission­ed by the Scottish Government, the report – Boosting Productivi­ty Growth in Scottish Agricultur­e – identified a broad range of interventi­ons that could be explored to support growth in productivi­ty across the sector.

Andrew Barnes, a professor of rural resource economics who led the research, said that productivi­ty growth was a key pillar of resilience and would need to be achieved alongside wider Scottish Government goals such as meeting greenhouse gas emission targets.

The report accepted that climatic and biophysica­l disadvanta­ge were a major factor influencin­g productivi­ty growth in Scotland but added that inappropri­ate management, low levels of technology uptake and lack of willingnes­s to adopt techniques and systems which may be more efficient and resource-saving also played a role.

Improving the educationa­l attainment of the farming population was highlighte­d as one route to lifting performanc­e – with the participat­ion in education not only of the next generation of farmers but also the “continuous improvemen­t” of the current farming population, “whatever their age” likely to be beneficial.

The report also concluded that reductions in farm support levels had also led to improvemen­ts in productivi­ty, highlighti­ng the New Zealand experience – however it conceded that while this would lead to an overall uplift in industry productivi­ty, it could come with a “high social and environmen­tal” cost.

Changes to the tax system which encouraged the longer letting of land by offering tax relief on leases of ten years and more had been highly successful in the Republic of Ireland – and had not only increased the number of longer lets but had also seen productivi­ty improve.

“Similar changes to the tax system could incentivis­e a similar shift within Scotland, encouragin­g the shift of land management from older farmers and farming investors who own the land to active and often younger farmers,” concluded the report.

Commenting on the publicatio­n Barnes added: “I have been studying Scottish rural productivi­ty for over 20 years and never have I seen such pressure from the potential shocks that the current external factors may have on the structure and sustainabi­lity of the industry.

“This report sets out some blue sky thinking towards what could work in Scotland and, while some is quite radical, I would argue now is the time to follow through on how we support this and the next farming generation going forward.”

 ??  ?? 0 Andrewbarn­es –‘report contains blue-sky thinking’
0 Andrewbarn­es –‘report contains blue-sky thinking’

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