The Scots farming sector remains in the dark about whether or not agricultural subsidies will continue in the event of the United Kingdom opting to leave Europe.
Politicians attending the opening day of the Royal Highland Show expressed opposing views on the issue.
Scots farm minister Richard Lochhead made a stark warning to farmers that it was in the industry’s interests that Scotland remained part of the EU.
“It’s the official policy of the UK Treasury to phase out direct support for agriculture,” said Mr Lochhead.
“Quite clearly if we are not a member of the EU the shield we have at the moment is removed. There’s absolutely no doubt in my mind that the first budget to be decimated by the UK Government [in the event of leaving Europe] will be the agriculture budget.”
However, Scottish Secretary, David Mundell, said he was confident the Prime Minister would be able to renegotiate better terms for EU membership and the referendum would result in the UK remaining part of the union.
He said he was in favour of farm support and it was down to industry to participate in the debate surrounding the forthcoming referendum and explain to the public why remaining in Europe was good for Scottish agriculture.
“I think it’s clear that we need to continue with agricultural support,” said Mr Mundell.
“I don’t think there is anyone arguing within the UK Government that agriculture shouldn’t receive support at all, but there continue to be arguments about the best way to do that.
“What government has said is that clearly over time they do want to see less subsidy for all industry, not just agriculture.”
Commenting on the issue, NFU Scotland made it clear that remaining part of Europe was the best option for Scottish agriculture.
Vice-president Andrew McCornick said: “We have a market for more than 300million people in Europe so we don’t want to lose it.”