Agricultural Support (Post-Brexit Transitional Arrangements)

Part of the debate – in the Scottish Parliament at on 20 June 2018.

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Photo of Fergus Ewing Fergus Ewing Scottish National Party

The consultation also forms part of the civic conversation that the national council of rural advisers will lead over the summer to shape a comprehensive new approach to supporting Scotland’s rural economy.

The consultation focuses on what might be done to provide stability in the period immediately after Scotland might have to leave the EU in 2019. It sets out ideas for short-term simplifications that could help current claimants of CAP-related support while improving or enhancing the delivery of policy goals. It asks questions about how best to support agriculture and integrate it into the broader rural economy over the transition period and beyond. It also seeks views on how pilot projects might be developed to test different approaches to rural support that might be taken forward. It is not an entirely open-ended consultation, however, as I am clear about what the key proposals should be and that the proposals should aim to deliver stability and security for businesses and communities.

The plan proposes that we have a transition period. The agriculture champions’ recommendation and rationale for a three-year to five-year period is compelling. Such a transition period would provide the space that we need to properly develop and devise a new and different approach for Scotland, which is in stark contrast to the one-year transition period that is currently proposed by the UK.

I propose that, within the five-year window, we have a two-year period of stability in which we continue to adhere to EU rules. I envisage that, during that initial phase, current EU support schemes will remain largely the same and provide security where it is needed most. That security will be enhanced for more than 11,000 farmers and crofters by my decision to also maintain the less favoured area support scheme in 2019 at 80 per cent, ensuring that our most marginalised farmers and crofters continue to receive the support that they need.

I propose to make some amendments to payment schemes in the second phase of the transition period to simplify and improve customer service, to provide enhanced public benefit and to make it clear that we are not standing still during that crucial period.

I want to explore and consider income parameters for farm payments, but I also want to declutter the payment landscape by removing penalties for minor indiscretions. Such an approach signals a key shift in mindset and attitude away from strict compliance towards a relationship that is based on trust and that values and supports delivery that is based on outcomes. I also want to reduce the administrative burden with regard to a range of steps in the payments system and process including inspections, mapping and scheme rules. Further, I propose that we use that time to streamline and synergise some of the myriad pillar 2 schemes.

Those measures will free up resource, in its widest sense, to be invested more in activities that we do now that we will want to continue in the future. For example, we already want to support more new and young entrants into farming and food production, so we will want to continue providing support in that area. However, we will also utilise resources to innovate and to develop and pilot new approaches. As well as encouraging new and young entrants, there are intergenerational challenges that we will need to address.

During the consultation, I want to hear views on the longer-term direction of travel. All ideas and proposals will be explored as part of the wider civic conversation on how best to sustain a vibrant and flourishing rural economy in the future. Key to that will be exploring how best to combine delivery of desirable outcomes for rural Scotland with support in the future. A new rural policy framework should seek to ensure that public investments in social, economic and environmental capital not only create a stable and secure environment for rural businesses but contribute to a sustainable, productive, diverse and thriving rural economy.

There is no doubt that the next few years will be extremely challenging for rural Scotland. However, unlike the UK Government, which becomes more chaotic and clueless by the day, this Government is focused on its responsibilities to protect and serve the best interests of the people and businesses in our rural communities. Since the EU referendum, almost two years ago, the UK Government has provided little clarity and almost no certainty. With less than a year to go to a Brexit that Scotland neither voted for nor wants, we cannot wait any longer. Rural Scotland needs and deserves as much security and stability as can be provided in the short term, and today I have published a plan to achieve that.