The six themes of strategy

Continuity over the next five years, including securing Sctoland’s payments

The champions believe that seeing the industry through the next five years should be the first plank in a 10 to 15-year strategy. Navigating the course of Brexit, when farm incomes are already very low, poses a major threat to the industry. The champions recommend keeping an eye on CAP reform within the EU, to make sure that Scotland is aligned with regulation and competitiveness.

They also want the idea of capping direct support payments to be looked at in more detail. While area-based payments work in some instances, a better fit may be found for Scotland’s extensive hill units. The champions want to move away from a one-size-fits-all approach towards an outcome-based system that is not unnecessarily burdensome in terms of administration and audits.

Assisting the Scottish agriculture industry through a period of major change

This theme is all about changing the mindset of farmers in order to make businesses more progressive, resilient and compliant. Some farmers aligned themselves with what the consumer wants, be that the food chain or the Government’s rewards for public goods. The champions believe these businesses will be best placed in terms of resilience needed to withstand the shocks of the market, changing weather patterns and reduced support payments.

However, the report says that there are other farmers who have fallen into the trap of the European system; which guarantees a living come-what-may no matter what the farm is producing. The champions say the goodwill of the public must continue to be earned. They are encouraging the Government to develop a programme to support mindset change and business skills, similar to the Scottish Enterprise’s Rural Leadership programme, but across a wider audience.

Enhancing Scotland’s natural capital

The champions have said that those who are proactive in their role as stewards of the land should be financially rewarded. However, they said there are practices on farms that are not in the best interests of the environment and that the agricultural sector must play its role in reducing its emissions in order to tackle climate change.

The champions want to see a new focus on soil health, better management of nutrients, better water quality, greenhouse gas emissions and an improved bottom line. They want to see encouragement of appropriate grazing levels and tillage systems that will prevent soil erosion.

They also see win-wins in improving plant and animal health, supported by investment in handling systems, training, forage analysis, performance recording and market data.

Helping to improve the productive efficiency of Scottish agriculture

Farm productivity has not improved significantly since the 1990s, according to the report. Low productivity leads to low profitability, cushioned by support payments. The champions say we should not shy away from comparing ourselves to international competitors, or from learning lessons between different sectors. They acknowledge the work being done by monitor farms and the Farm Profit Programme (see page 18).

While there are lessons to be learned from Irish programmes, Scotland will not have the same level of EU funding to pump into such initiatives.

Agriculture should be doing its research where the demand for the product lies. Some businesses will succeed through economies of scale, while others will prosper on emerging markets, diversified income streams, capturing more of the value-added sector, or short local supply chains.

Illustrating the huge opportunities for careers in the rural sector

With a concerning age demographic in Scottish farming and a lack of succession planning, the champions see this as an area for immediate action, given that it is unrelated to Brexit. There is a need for a new generation of farmers, agronomists, engineers, food processing staff and other supporting professions. There needs to be more publicity around the potential agriculture has to deliver jobs for rural Scotland, the champions say.

The education and training group has identified three segments of the careers market:

The champions say that numbers taking part in the ‘skills for work’ Rural Skills National Progression Awards are quite low and it is seen as a subject for a ‘low achiever’. However, they have also identified that there is no apprenticeship provision for rural skills, which they say would be beneficial.

Improved integration of the supply chain for the benefit of all in Scotland

This theme focuses on how best to ensure farmers get a fair return from the development of the food and drink sector. The champions say that closer collaboration between the producer and the businesses that buy their product is the way forward, not a distancing of the two.

This includes Government-led campaigns that communicate information to the public about Scottish farming and its products. Having discussed collaboration with contributors to the strategy development process, the champions say they were struck by the benefits it can bring. The benefits vary from improves economies of scale, to sharing of specialist machinery and staff. It would allow smaller producers to increase volume, quality and specification of products. The champions look towards the work of SAOS to encourage greater collaboration.