Scottish Rural Development Consultation

The Scottish Government isnot planning anything too radical in its next Scottish Rural Development Programme (SRDP).  As set out in its consultation launched on the 11^th December, support for hill areas through the Less Favoured Areas Support Scheme (LFASS) will continue to be the main strand of support.  The current Rural Development Contracts system will be disbanded, but many of its elements will remain as stand-alone schemes in the new structure.

With a proposed rate of transfer from Pillar 1 to Pillar 2 of 9.5%, it is estimated that, between 2014 and 2020, the SRDP will have £1.326bn of funding.  The list of schemes, and their share of funding is as follows;

• LFASS (£459m or 35%) – a continuation of the present scheme with a very similar budget and probably quite similar rules.  When the new ‘Areas with Natural Constraints’ (ANCs) replace LFAs in 2018 the opportunity will be taken to see if the scheme can be streamlined and modernised. 
• Agri-environment and Climate Change (£355m or 27%) – this will pick up many of the agri-environmental practices currently supported under Rural Priorities and, to a lesser extent, Land Managers Options.  Annex C to the consultation provides a list of 41 options under consideration – these include support for organic conversion and maintenance.
• Forestry (£252m or 19%) – as well as grants for woodland creation these funds will support processing and marketing and woodland improvement.
• New Entrants Scheme (£20m) – includes a start-up grant of €70,000 split into two payments over five years.  This will be for Young Farmers (40 years old or less) setting up in business for the first time.  The new Advisory Service (see below) will specifically target Young Farmers for mentoring. 
• Crofting and Small Farmers Scheme (£20m) – as the name suggests, this funding will be open to all farms and crofts within the suggested size band of 3-50 hectares; unlike the present Crofting Counties Agricultural Grant Scheme (CCAGS).  The scheme will provide grant funding for defined capital investments of 40% (50% in the LFA with higher grant rates for Young Farmers and co-operative schemes).
• Co-operative Support (£10m) – this will fund facilitation of co-operation in Scottish agriculture, including studies into group working and the running costs of co-operative ventures.
• Knowledge Transfer and Innovation Fund (£10m) – this will build on the current Skills Development Scheme (SDS).  There will be funding for vocational training and skills development but also monitor farms, benchmarking, and demonstration activities.  The funding level is double that in the current SRDP. 
• Advisory Service (£20m) – the existing advisory support will be enhanced in the new SRDP.  A co-ordinated Advisory Service will be created with a Scottish Government ‘hub’ delivering a helpline, web guidance and links.  The hub will also accredit consultants who will deliver individual ‘Integrated Land Management Plans’ to farm businesses.  These plans may lead on to the need for further specialist advice.  This advice service will be closely co-ordinated with the Knowledge Transfer activity.  This ‘Scottish Agricultural and Rural Advisory Service’ (SARAS?) looks like an attempt to re-create the government extension services of the past. 

There are a number of elements to the proposed SRDP that are less directly focused on farming and forestry;

• Small Rural Business Support (£20m) – this will provide start-up grants of up to €70,000. 
• Food and Drink Scheme (£70m) – this will provide assistance to SMEs.  There will be start-up grants for new businesses and business development grants for both capital and non-capital projects. 
• LEADER (£66m) – EU rules require that a minimum percentage of Rural Development funds have to be spent through the community-led LEADER groups. 
• Broadband (£9m) – the funds will support the deployment of broadband in rural areas. 

It is proposed that there will be a new application process for the next SRDP.  LFASS will continue to be dealt with on a separate annual application, for other schemes applications will be split into two levels.  Level 1 applications will apply up to £75,000 (£750,000 for forestry) and be subject to approval at a local level on a continuous basis.  Level 2 applications will be considered nationally by an expert panel.

The full consultation can be found at – http://www.scotland.gov.uk/Resource/0044/00440079.pdf  The deadline for responses is 28^th February 2014.