NFUS makes fresh appeal about convergence cash

Six years ago, the European Union allocated extra funding to the UK based on the lower than average level of farm support payments going to Scottish farmers. However, only a small percentage of that extra, or convergence, funding amounting to £190 million made it over the Scottish Border, with the Westminster government deciding to spread it across the whole of the UK.

Yesterday, NFU Scotland repeated that the shortfall must be addressed and, as far as the union was concerned, the ideal vehicle was the long-awaited Review of Intra-uk Allocation of Domestic Farm Funding. This independent review, announced by Defra Secretary Michael Gove last October, is being chaired by Lord Bew, a Belfast academic who sits as a cross-bencher in the House of Lords. Former NFUS president Jim Walker is the Scottish Government representative.

In the NFUS’S submission to the review, it states quite clearly that the extra support cash was awarded “exclusively as a result of Scotland’s low payment rate per hectare (approximately €130 per hectare)”.

It says this support level was about 45 per cent of the EU average and the cash from Brussels of around £190 million was to cover the shortfall over the period 2014 to 2020.

The stated objective of the review is to “look at what factors should be taken into account to ensure an equitable intra-uk allocation of domestic farm support funding”.

In the union’s submission, president Andrew Mccornick said it wanted to see the convergence dividend issue resolved fairly, “using objective and nondiscriminatory criteria, to ensure a fair intra-uk allocation of agricultural funding to 2022”.

He wanted this objective so it maintained Scotland’s “vital capacity to produce food and to deliver the growth potential of the Scottish food and drink sector”.

Mccornick added the review is not simply about the Common Agricultural Policy convergence funds and their allocation, it is also about setting a fair and objective precedent for the future.

The union stressed this future was not affected by the recent extension to the Article 50 process as the UK would continue to be effectively governed by EU rules and regulations and would be a participant in CAP schemes, until well into the 2020-22 period to be covered by the review.

“Post-brexit, a UK agricultural budget will be needed to replace the previous CAP allocation from the EU to the UK. NFU Scotland continues to pursue a clear commitment from the UK government for a future ring-fenced, multiannual agricultural budget. This review has the capacity to firmly establish a fair and objective basis for the allocation of such a budget across all four devolved administrations.”