£51m transition fund for Scottish farmers

A new scheme to support farmers towards a low-carbon future has been announced by the Scottish Government.

The scheme is being called the National Test Programme and is opening in spring, with up to £51m to be spent over three years.

The programme was announced at National Farmers’ Union (NFU) Scotland’s autumn conference in Dunfermline and will be available to all businesses currently in receipt of the basic agricultural support payment.

The results of this will establish a baseline and will lead to options for on-farm changes

The programme is designed to gather data on farm emissions and environmental performance, with farmers to be offered financial support to carry out carbon audits and nutrient management plans.

The results of this will establish a baseline and will lead to options for on-farm changes. The information gathered will also guide future farm support schemes and climate targets.

Last December, the Scottish Government committed the agricultural sector to a 31% reduction in greenhouse gas emissions by 2031.

The current payment model for Scottish farms is largely unchanged from the CAP payments pre-Brexit. The Minister confirmed the Scottish Government’s stability and simplicity policy will continue until 2024 as planned, with no payment changes in the pipeline.

The Government states that from 2025, the climate and biodiversity performance of businesses will determine the level of agricultural support payments

However, after 2024, significant changes are expected, which are likely to have a much greater focus on emissions reductions, with the Government proposing greater “conditionality on criteria for payments”.

The Government states that from 2025, the climate and biodiversity performance of businesses will determine the level of agricultural support payments.

Next year, there is to be a white paper published on future farm support in Scotland.

Livestock data centre

The programme is putting a lot of focus on the beef sector, with new livestock data and performance systems for cattle farmers which will gather data on animal performance. There will also be trialling of an active livestock management initiative for suckler beef farms.

We will produce more of our food more sustainably, we will deliver climate mitigation and adaptation, we will restore nature and protect and enhance biodiversity

Rural Affairs Secretary Mairi Gougeon, who announced the programme in front of 160 in-person and online conference delegates, said: “We will produce more of our food more sustainably, we will deliver climate mitigation and adaptation, we will restore nature and protect and enhance biodiversity, and our success will mean we get to pass to future generations a land, a climate and a country that works for their benefit and for the benefit of the whole planet.”

The programme development is taking place in partnership with the Agricultural Reform Implementation Oversight Board (ARIOB) made up of Scottish rural sector stakeholders.

The group has been in existence since the summer and co-chair NFUS president Martin Kennedy welcomes the package of measures.

No beef cut

Many farmers had been worried that the new scheme could include a requirement to cut cow numbers or financial support to reduce herd size.

However, the Minister stated that this was not in the Government’s plans.

I welcome the £51m package to assist the industry in defining a baseline of where we are at present on individual farms and crofts

Kennedy said: “I thank the cabinet secretary for reiterating her firm commitment that there will be absolutely no policy whatsoever to reduce livestock numbers in Scotland.

“One of the reasons I agreed to sit on the ARIOB was to make sure this did not happen, so finally putting that to bed is important.

“I welcome the £51m package to assist the industry in defining a baseline of where we are at present on individual farms and crofts.

“This will not only give us an individual picture of where we are starting from, it will also give us a national picture, which will confirm that we are already starting from a good place in Scotland.

“This baselining will also inform the decisions we need to make in the future, which in turn will showcase Scottish food production as being a major part of the solution to climate change and biodiversity, not the problem.”

Post-2024 plans criticism

Kennedy did go on to criticise the Government for not offering greater details on payments post-2024 and for not directly paying beef farmers to make early changes to their business to reduce emissions.

He said: “I am still seriously disappointed that we do not have either a top-up to the existing calf scheme or indeed a separate calf scheme payment to allow the beef sector to move earlier, given its willingness to address some of the issues it is facing.

That said, taking this whole-industry approach was always going to be the next stage and we cannot wait any longer

“I am of the belief that beef could have led the way had there been the political will to do so.

“That said, taking this whole-industry approach was always going to be the next stage and we cannot wait any longer. The whole industry needs to know what is coming down the track and this is beginning to show that sense of direction for all sectors.”

NFU Scotland president Martin Kennedy said the sector was in the midst of the “perfect storm” of challenges when he addressed the conference in Dunfermline.

He said Scottish and UK agriculture are facing some of the most serious challenges they have ever faced.

Kennedy called for the UK Government to immediately address industry access to non-UK permanent and seasonal staff and immediately kickstart UK plants, so we are more self-sufficient in energy, fertiliser and carbon dioxide.

And he called for the Scottish Government to place a moratorium on whole farm sales for carbon credits, introduce food production and the environment into the school curriculum and introduce proper labelling in the food service sector.

The signals we are getting are that we are not valued, and agriculture is the pawn to get what UK Government wants

He said: “At the moment, we face a perfect storm created by political decisions, the current COVID-19 pandemic and a loud minority of people who do not fully understand the reality of food production in this country, and unless we address this immediately, our ability to be a self-sustaining food and drink nation will be completely eroded.

“First of all, we need to know that from a UK perspective, what we produce here is valued. In the most recent trade deals signed with Australia and New Zealand, we were not included in any of the negotiations.

“The signals we are getting are that we are not valued, and agriculture is the pawn to get what UK Government wants.”

60% self-sufficient in food

“This has to change, we need to be informed and kept in the loop when it comes to international trade deals, or the current situation of being only 60% self-sufficient in food, which has dropped 20% in only a few decades, will drop even further.

“If we cannot feed ourselves, others will provide us with the basic necessity of food and, at the same time, we will offshore our emissions to other countries, many of which do not share our climate or environmental ambitions.”

Scottish farmers will be able to apply to the Agri-Environment Climate Scheme (AECS) which is reopening for a new round 2022.

The scheme will promote low-carbon farming and protecting the environment.

There will also be grants available for conversion to organic production systems as the Government aims to double the area of organic farmland.

Scottish Ministers have also agreed to deliver future rounds of the fund up to and including 2024.

Many of the schemes involve delayed grazing or providing habitat for specific species over a number of years.

The announcement will mean farmers will be able to be rewarded for continuing their conservation efforts. Currently around 3,000 farms take part in AECS.