In its response to an independent inquiry into the support arrangements for Scottish farming, NFU Scotland has acknowledged the flaws in the current system and proposed solutions that are better focussed on activity for the future.
Commenting on the interim report from the Inquiry into Future Agricultural Support for Scotland, led by Brian Pack, the Union has concluded that continued public support through the Common Agricultural Policy (CAP) remains justified and that such support must be focussed on productive agriculture and delivered to the individual undertaking that agricultural activity.
The CAP, and the Single Farm Payment (SFP) Scheme that delivers support payments to farmers in Scotland, is scheduled for reform from 2013 onwards.
NFU Scotland President, Jim McLaren said:
“We accept that the current SFP system of support in Scotland is flawed. The most notable and unacceptable flaws are the exclusion of new entrants from the current system and that payments in Scotland are being made to some individuals who are contributing nothing or very little to Scotland’s agricultural output.
“There is a real desire amongst farmers that these anomalies must be addressed as soon as is practicably possible. The Pack report clearly outlines that, regrettably, there are no meaningful or practical means by which these problems can be sorted under the current rules. Therefore attention must be focussed on the rules for CAP post-2013 to ensure these flaws are dealt with from day one of a new scheme.
“That new scheme must be focussed on productivity and that those actively engaged in farming are the beneficiaries of the public support available. We accept the current EU debate presumes a transition to an area-based model. Any change brings the risk of destabilising farm businesses; therefore a transition period to an area-based system post-2013 is essential to allow Scottish farmers to adapt to a new system.
“To ensure active producers are the main beneficiaries of public funds, we also support the ability under the new rules to undertake a one-off updating exercise looking at the activity taking place on every farm. By doing this, we will capture the activity of new entrants to our industry in any successor scheme and, at the same time, exclude the inactive from it. This then creates a stronger platform for the move towards the area-based system.
“As to the shape of the area payment system that the transition period will move us towards, we need to recognise that there are distinct differences between priorities for the livestock and cropping sectors. Therefore a ‘one-size-fits-all’ model is inappropriate.
“A simple area payment system cannot meet the objective of supporting productivity in the livestock sector. Therefore, whilst we harbour some reservations, a Top-up Fund (TUF) for the livestock sector, as discussed in the interim report, must be explored. For the cropping sectors, a TUF is far less desirable and has less relevance and a simpler, one-payment vehicle for delivering the SFP will have more merit.
“The heated debate taking place in Scotland at this time will help distil just what our industry needs from the CAP. At the same time, the CAP reform process is still at a relatively early stage, and a ministerial agreement is not due until at least late 2012. Therefore, both industry and Scottish Government negotiating positions must be ‘light on their feet’ to deal with emerging issues that are likely to appear in the future.”
Notes to Editors
- A summary of NFU Scotland’s comments on the Inquiry into Future Support for Agriculture in Scotland - Interim Report is available on request.
Ends
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