Farming leaders voice EU budget debate concerns

AN IMPORTANT group of farming leaders has given voice to its concerns over the EU budget debate and cast doubts on the UK Government’s commitment to securing the best deal for Scottish agriculture, writes Ewan Pate.

In an open letter they say: “Westminster appears gripped by a wave of euro scepticism at this important time for rural Scotland.

“Looking for controls on Europe’s spending must be a priority as domestic budgets are cut.

“However, headlinegrabbing calls to cut ever deeper into those EU budg- ets risk overwhelming the real political challenges in Europe and blocking potential benefits for the UK and devolved administrations.”

The authors call the modern CAP “an engine for economic activity” and point to its key role in ensuring food security in a world where supply is no longer guaranteed.

“In Scotland, where our iconic livestock production has been falling, the new CAP has the potential, through coupling payments to stock, to bring production back into balance,” they wrote.

“The CAP reform process will take place under the shadow of reduced spending, but within the reform package there is a commitment to move funding to those member states and regions — like Scotland — that have been disadvantaged by low levels of support historically.”

Scotland is near the bottom of the CAP funding league, with direct farm support less than half the average rate in Europe.

In rural development spending, which includes agri-environment and habitat management payments, Scotland only draws down 15% of the EU average.

“In Brussels, the door has been opened to a fairer distribution of rural development funding and there are real opportunities for the UK and Scotland, but only if the Defra Secretary of State Owen Paterson MP engages positively in the process,” the letter says.

It concludes: “The political posture risks sidelining the UK from key decisionmaking in Europe and, in so doing, removes the potential of negotiating an increased share of rural spending.”

The letter is signed by Nigel Miller, president, NFU Scotland, John Cameron president of the Scottish Beef Cattle Association and National Sheep Association Scotland, Alan McNaughton president, Scottish Association of Meat Wholesalers, Luke Borwick,chairman, Scottish Land & Estates, Angus McCall, chairman, Scottish Tenant Farmers Association, Hamish McBean chairman, National Beef Association Scotland, and John Gregor, past president of the Institute of Auctioneers and Appraisers in Scotland.

A Defra spokesperson said: “CAP funding in Scotland is relatively low because direct payments are based on historic expenditure linked to production.

“It’s essential that we avoid growth in EU spending at a time when governments across Europe need to reduce their deficits. No sector can be exempted from the need for spending restraint.

“We want significant reform of the CAP so that over time production across Europe is not reliant on direct subsidies and farming can take advantage of the huge opportunities for export.