Agriculture bill provides continuity for industry
While the politics of Brexit and the uncertainties associated with future trade deals might have been hogging the headlines in recent months Scotland’s agriculture bill will play a key role in providing certainty and continuity for Scotland’s farmers.
And a call went out yesterday for this piece of legislation to guarantee the “absolute anchor point” of economic activity in many of the country’s most remote and inhospitable regions – the less favoured area support scheme.
While the clumsily titled Agriculture (EU Retained Law and Data) (Scotland) Bill – which yesterday moved into stage 2 of the Scottish Parliamentary process – might not point out the direction of future farm policy, NFU Scotland yesterday said it was “absolutely key” in providing short-term stability.
“The bill will ensure payments and processes under existing and familiar schemes continue for the time being – underpinning all Scottish agricultural businesses,” said union president, Andrew Mccornick.
Speaking at an on-line press briefing which would normally have taken place at the Royal Highland show, he said that the bill offered a clear opportunity to simplify and improve current support schemes and act as a stepping-stone to more significant and much needed change.
But while there were minor quibbles over the current pace of change to a new policy more tailored to Scotland’s needs, Mccornick admitted that the most immediate concerns lay in the future of the less favoured area support scheme (LFASS).
“Critically, and from 2021, the Scottish Agriculture Bill must be used to ensure the continuity of the less favoured areas support scheme – and with a maintained £65 million budget, said Mccornick.
“The new legislation must be used to unpick Scotland from existing EU demands that would further destabilise Scotland’s hill farming and crofting interests – and everything they underpin.
Under EU rules, Scotland would have to introduce and Areas of Natural Constraint (ANC) scheme from next year – leading to a significant and destabilising redistribution of existing support but Mccornick argued that LFASS should continue in its current form until 2024, based on 2019 livestock data.
The scheme’s £65m budget is currently financed jointly by the EU and the Scottish Government and paud through Pillar 2 rural development scheme.
Doubt hangs over whether the UK government’s support to maintain “farm support spending” extends to Pillar 2 payments – which could future tabs to be picked up by the Scottish Government.
However cuts to the budget were shored up this year from a compensation fund announced by Boris Johnson to make up for a historical misallocation of convergence funding – a move which saw the Scottish Government’s contribution to the payment fall.
A similar approach is likely for this year’s payments when the budget will be further reduced – but beyond that the convergence compensation will be used up.
The union’s policy director Jonnie Hall described LFASS as an absolute “anchor point” for the maintaining the industry’s economic activity in the country’s most remote and inhospitable regions:
“And we simply can’t let that fall off a cliff edge.”
Vice-president Martin Kennedy said that the LFASS scheme offered a huge dividend to these areas and provided the boost required to keep the entire rural community functioning.
“We want the scheme to continue and the Scottish
Government wants the scheme to continue – we just need confirmation that this will happen,” he said.
A Scottish Government spokesperson called on the UK government to deliver on its promise to replace lost EU funding:
“The rural economy secretary is aware of the importance of LFASS funding in Scotland which is why we are the only part of the UK to offer this support which ceased several years ago in other parts of the UK.
He added that the uncertainty was unacceptable and said efforts continued to push the UK government for answers and rural secretary Fergus Ewing had repeatedly stressed the importance of these payments to the UK government.
● At the same time in Holyrood, it was claimed that an amendment to include a “sunset clause” in the bill would ensure a new bespoke system of support for Scotland’s rural economy before the end of the next Parliamentary session. Lib-dem MSP, Mike Rumbles, who raised the amendment said that stakeholders from across the sector had raised concerns that the bill, as initially proposed by the Scottish Government would allow ministers to change the current system of support for farm businesses, without putting it to a vote in the Scottish Parliament – and even allow the Brexit transition arrangements to continue indefinitely.
The change ensures a new bill is brought forward before the end of the next Scottish Parliament in May 2026.
“I’m delighted that the rural economy committee passed my amendment today, with the support of the cabinet secretary and the Scottish Government,” said Rumbles.
“It is clearer now than ever before that high quality Scottish produce and particularly our exports are vital to not only the rural economy but Scotland as a whole.
“That is why it is vital we get the legislation right at this stage of the proces,” he concluded.