Union says farmers and crofters deserve long-term certainty.
NFU Scotland is calling on UK and Scottish Governments to remove the ‘smoke and mirrors’ around future agricultural funding to deliver direction and certainty to Scotland’s farmers and crofters.
Agriculture is a long-term industry, now tasked with the heavy lifting to deliver on food, climate and nature ambitions, and the Union is calling on both Governments to stop hiding behind each other on future funding and deliver the clarity and certainty that farmers and crofters need to allow them to plan.
With a General Election expected in 2024, the Union accepts that no UK Government can tie the hands of its successor on budgets beyond that date. However, England is legally bound to multi-annual commitments on agricultural funding to 2027 and, under a new Agriculture Bill for Scotland, NFU Scotland will seek to ensure that successive Scottish Governments are committed in the same way.
Agricultural and Rural Economy (ARE) policy is devolved. As a result, it is ultimately for the Scottish Government to set farm funding in Scotland. It is also the case that non-Barnett funding, including UK Government funding for agricultural support, is usually ringfenced and that the UK Government has committed to maintain the funding available to farmers and land managers in every year of this Parliament – equating to some £620 million for 2023-24 for Scotland.
At its traditional press briefing at the Royal Highland Show, Scotland’s annual four-day showcase for food and farming, NFU Scotland said that from a political perspective, the next six months will be key on these issues.
President Martin Kennedy said: “We have two governments hiding behind each other on future agricultural funding and those stuck in the dark and unable to make long-term plans because of the smokescreen are farmers and crofters.
“The Scottish Government claims it can’t commit to a direct support allocation as it doesn’t have the budget commitment from the UK Treasury. Meanwhile the UK Treasury, at our recent meetings in London, claims it can’t provide us with the reassurance we need as it is ultimately the choice of the Scottish Government as to how the ringfenced funds provided to Scotland are allocated. The Treasury believes that a funding commitment is not needed from it as the Scottish Government can prioritise what it chooses to. And so, it goes on, with the grassroots industry in Scotland none the wiser on what the future holds.
“The solution is clear. Given the certainty on funding provided to farmers in England, a multi-annual commitment equating to at least £620 million for Scotland on funding for agriculture from Treasury beyond the next election is within the gift of the UK Government. In turn, the Scottish Government must back that up with a commitment to use its ringfenced allocation as the mainstay of an agricultural budget. From that budget we want at least 80 per cent allocated as direct, non-competitive support to underpin the viability of agricultural businesses and reward management options that drive business performance while tackling climate and nature issues.
“In simple terms, if legislation for England means Defra must provide long-term certainty for English farmers on funding, then Scottish legislation could and should do exactly the same for Scottish farmers and crofters.
“Those producing the nation’s food are well aware that funding is no longer there to deliver the status quo seen under the Common Agricultural Policy but to manage change allowing us to deliver on agricultural production, climate change and biodiversity and support and grow the thousands of Scottish jobs and supply chain companies supported by our members.
“The lack of certainty from Scottish and UK Governments relating to future funding is rapidly eroding confidence – regardless of new policy frameworks and objectives. Scotland’s farmers and crofters need real leadership from both Governments, and from both parliaments, and a commitment to delivering direction, clarity and certainty to all farm businesses.”
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Contact Bob Carruth on 07788 927675