Scotland’s Rural Development Programme

Richard Lochhead, Rural Affairs Secretary, has published details on the new Scottish Rural Development Programme (SRDP). Applications for some of the schemes will open in January, despite approval from the European Commission not expected until the summer. The approval process for Rural Development Programmes across Europe has been slow with just 3 of 118 currently approved, the Scottish Government has sumbitted a 400+ page document for approval which is available online (http://www.scotland.gov.uk/Resource/0045/00454289.pdf). Details of the proposed programmes is summarised below.

Less Favoured Areas Support Scheme (LFASS)

LFASS continues to receive the largest share (35%) of the SRDP budget.  The scheme will continue to offer an area-based payment to livestock producers, rates are shown in the table below.  Applications are tobe submitted along with the Single Application Form in May with payments expected in spring 2016.

Agri-Environment Climate Scheme (AEC)

Receiving 27% of the SRDP budget. The scheme will open in March with contracts issued in the autumn. Some high priority agreements which expired in 2014 are being renewed.

Regional objectives (targeting statements) will be used to steer commitments with a focus on long-term benefits and value for money. Farms eligible for a scheme may not be awarded an agreement as all applications will be competitive and agreements, which will be for 5 years, will be granted based on merit.  The AEC scheme payments will be made annually with payments rates set by income forgone calculation, as is currently the case.  Both capital and management options will be available.  A list of options and proposed payments rates is available at http://www.scotland.gov.uk/Topics/farmingrural/SRDP/AEC-Forestrypaymentrates

An interesting addition to the scheme is the requirement for agreement holders to keep a record of the actions they undertake relevant to options that have selected.  Agreements will not be a simply complete-the-form and carry on farming exercise, but will need to remain in the mind of the agreement holder throughout the agreement period.  Maybe this will help deliver the environmental benefits it is aiming for. Organic support will also come under the AEC heading with organic applications scored against each other. Additional funding will also be available for those wishing to establish landscape-scale projects.  

Forestry

Receiving 19% of the SRDP budget forestry will continue to be a focus in Scotland with funds available for woodland creation and management.  Beneficiaries will be required to produce a management plan with payments of up to 100% of the standard planting and maintenance costs for 5 years.  For small or farm woodland the standard establishment cost is £3,000 per hectare with a maintenance cost of £2,500 per hectare.  Funding will also be available for the establishment of agroforestry systems, with support of up to 80% of the standard establishment and maintenance cost.  Further funding for forestry comes in the form of supporting investment in technology, marketing and environmental value of a forest.

Farm Capital Investment Schemes

This will be the first to open with applications taken from January. These capital investment schemes will be available for crofters, small farmers and new entrants. The early application window is to ensure that young farmers are able tosubmit their applications whilst aged 40 or under.

Funding will be available to cover a maximum of 80% of the costs in Less Favoured Areas/Areas of Natural Constraint and 60% in other areas for young farmers.  Rates are a maximum 60% in LFA and 40% in other areas for the other categories. 

LEADER

From spring onwards Local Action Groups (LAGs) will commence delivery of the LEADER programme. Local DevelopmentStrategies will identify where funding should be granted and the priorities in areas, these strategies have already been  drawn up.  More information on leader can be found at www.scotland.gov.uk/LEADER2014

Young Farmers

A fairly substantial payment scheme has also been proposed for young farmers. The Business start-up aid for young farmers will see a grant of up to €70,000 paid in two instalments (75% then 25%) to help with the start-up costs of a business.  The second instalment being paid on implementation of a business plan.  The grant fund can be used to purchase livestock or machinery, construct buildings or used as working capital. To be eligible the young farmers must have an agricultural qualification (NVQ Level 2 or above) or 5 years practical experience and a plan to achieve a qualification within 3 years.

Other schemes such as the Knowledge Transfer and Innovation Fund (KTIF) and Environmental Cooperative Action Fund are likely to open in early 2015, although contracts will not be awarded until the Commission has granted approval of the SRDP.  The Food and Drink scheme will open in March 2015. The Beef Efficiency Scheme and Advisory Service will launch in 2016.