Scottish Coupling Agreed

After much confusion, it seems likely that Scotland will be allowed to link up to 13% of its BPS funds to production.  We wrote last month about the uncertainty between the EU Commission, the Scottish Government and DEFRA over what coupled payments could be allowed.  The EU Commission now backs an interpretation of the rules that means Scotland can borrow some of the un-used coupling allowance from elsewhere in the UK to boost its own rate from 8% to 13%.  Speaking in Scotland on the 12^th May, DEFRA Secretary, Owen Paterson, made it clear that he would not stand in Scotland’s way.  The Minister was clear however that any money for extra coupling would have to come from within the Scottish BPS budget.  Also, any disallowance (EU fines) as a result of the extra coupling would be solely Scotland’s responsibility.  It is now seemingly up to the Scottish Administration whether it wants to use this mechanism.  Payments focused on actual beef and sheep farmed is one way of dealing with the problems of area payments in Scotland’s vast and disparate ‘rough grazing’ region.  However, there are other options, including splitting the region into smaller units.  As we have said previously, decisions need to be made soon on these points to allow implementation to begin.