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New Cap’s winners and losers

New Cap’s winners and losers

Scotland looks destined to be split into two payment regions under the new Common Agricultural Policy with the highest subsidies going to arable and permanent grassland.

The Scottish Government finally yesterday set out its vision of how the new Cap will look – and immediately conceded there will be winners and losers as the shift is made away from support decided on production between 2000-2 to a regime based on the area an individual farms.

First estimates suggest total area payments, which include the basic and greening elements, of £169-£211 a hectare for the arable and permanent grassland region and £16.90-£21.10 for rough grazing, assuming the claimed area remains as at present. The rates give 85% of support to the more productive farmland and 15% to rough grazing.

The government’s consultation runs until March at which point views will then be considered and a final decision reached on the shape of the Scottish Cap.

Rural Affairs Secretary Richard Lochhead said his vision was one where Scottish farmers produce quality food and compete at a world level while protecting the natural environment. “The new Cap is central to delivering this vision and we need to strike the right balance between flexibility and simplicity. Scotland has magnificent natural resources and it is in all of our interests to support food production and responsible land use. We absolutely must maintain the capacity to produce food as a nation and we absolutely must look after our environment.”

Mr Lochhead uses the consultation to indicate his preferences while laying out all the options available. But he and his officials warn that while some ideas might offer a better solution there is a need to avoid added complexity and compliance costs as well as additional bureaucracy on farms. While a third high hill payment region may be preferable, officials said that would force them to designate individual fields, adding considerable costs and creating an administrative nightmare.

Mr Lochhead said: “I can’t emphasise enough how important it is that we achieve that balance. A new policy that tries to deliver a tailored solution to every circumstance in our diverse agriculture sector and geography might be tempting, but it would be a recipe for chaos and obviously we all want to avoid that.”

Mr Lochhead again complained about the poor funding available for Scotland, blaming ministers at Whitehall for negotiating the settlement poorly. “The choices we have to make will be all the more critical because of our poor budget settlement,” he added. “Other nations are debating how to invest significant additional resources in their farming sectors. In Scotland we face cuts.”

NFU Scotland communications director Bob Carruth said there were few surprises. He pointed farmers to ready reckoner on the government’s website – www.scotland.gov.uk/Topics/farmingrural/Agriculture/CAP/cap-resources – which gives an indication of what farm payments may look like in 2019.

He added: “It is already apparent that both two-region and three-region (payment) models feature in our members’ thinking and the key issue for many is how activity is recognised. That will create most difficulties in our hill areas where a simple area rate for rough grazing will not accommodate the wide differences in stocking rates and activity found in these parts. We’ve had a resounding message from our members that every effort must be made to prevent empty hillsides from bleeding scarce funding from the genuinely active.”