The Press and Journal (Inverness, Highlands, and Islands)
STEPHEN YOUNG
After a lengthy lobbying campaign, and a near yearlong review led by Lord Bew, the news that Scottish agriculture was finally to receive the longawaited convergence funding was a substantial boost for the sector.
Firstly coming in the shape of £160 million announced by the chancellor, which was then enhanced on publication of the review by a recommended allocation of £51.4m for the remaining two years of convergence budget, the efforts of the sector and the Scottish Government in making the case for all our farmers was finally realised.
However, having the money and then deciding its allocation are two different matters.
The Scottish Government has announced that £80m of funding will be delivered to farmers by March, with the bulk of the funding – £65m – distributed on an area basis.
Around £52m of that will be applied across the three Basic Payment Scheme regions with £13m used to top up the Less Favoured Area Support Scheme (LFASS) budget.
Additionally, there will be top-ups to the voluntary coupled beef and sheep schemes amounting to £15m, and Rural Economy Secretary Fergus Ewing has pledged a further £10m for crofting.
It was no easy task for Mr Ewing to decide how to slice the cake; there were many different voices with competing ideas including farming and crofting organisations.
That said, the hurry by the Scottish Government to announce the funding prior to the general election purdah period has left a feeling of missed opportunity for Scottish farming.
Greater discussion with the industry on this allocation would have been desirable – it is unlikely that government would have been able to satisfy every demand but it may have been possible to achieve a broader consensus and better understanding of its reasoning.
From our perspective, Scottish farming’s biggest issue is profitability – there needs to be much more of a focus on preparing and enhancing the sector for future decades, while helping the next generation in the process.
We welcome the commitment to commence work on a replacement for LFASS, something for which we have been calling for several years.
The funding as announced will only be used for existing payment recipients, meaning new entrants will be unable to access the cash.
Topping up the National Reserve with a small sum, open to all new entrants, would be perfect for investing in farming’s future as we seek to avoid new businesses struggling in the way that many longer-established enterprises have in recent years.
Similarly, a small slice of investment in current knowledge exchange schemes – equipping farmers with the expertise they require to improve their own business and adapt for a changing climate – would have paid dividends in the future.
The Scottish Government has already said it will create an Agricultural Transformation Fund – a move Scottish Land & Estates (SLE) very much welcomes, and indeed called for as part of the Climate Emergency Response Group, which is a cross-sector group of organisations that sets out recommendations to Sottish Government to meet this challenge.
Although details are still to be agreed, we see this as an opportunity to fund capital projects which can bring long-term efficiency savings and benefits for both the bottom line and the environment.
The funding can be used to create positive change and allow people to invest where they couldn’t currently, due to financial pressures.
Overall, this allocation of convergence funding – and enabling agriculture to play its part in responding to the climate emergency – is a welcome lift at a good time for Scottish agriculture but, with more funding still to come, we must ensure it can and does deliver dividends in future rather than a short-term boost. SLE will continue to engage with government and the sector to achieve that goal and ensure policy moves forward.
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