SFP argument under spotlight

THERE has been increasing anger and hand-wringing over the amount of public money going to farmers who have retired from the industry and who are therefore not producing anything for the subsidy they are receiving.

The official position has been that nothing can be done about this "slipper brigade" cash, which has been reckoned to amount to more than 30 million annually.

But now after going through the regulations behind the Common Agricultural Policy, one of Scotland's MEPs has found out that the Scottish Government can stop these single farm payments (SFPs) to non-active farmers.

George Lyon, Liberal Democrat MEP for Scotland, has now asked the Scottish Government to clarify whether it intends to use these powers to stop SFPs.

Lyon said yesterday that changes to the regulations at the beginning of 2010 gave powers to stop individual farmers from receiving SFP if their agricultural activities form only an insignificant part of their overall economic activities or whose principal business or company objectives do not consist of exercising an agricultural activity.

He added that the big plus from doing so was that any SFP entitlements which were removed would go into the National Reserve and this would allow new entrants to come into the industry.

"I understand that the minister was briefed by the commission on the potential use of these powers four weeks ago and told that they could be the answer to questions over activity.

"Given that the Pack report has put activity front and centre of any reforms to the system, it is strange that the Scottish Government has not made a formal announcement."

In response a Scottish Government spokesman said the provisions Lyon referred to "would not fully resolve the situation."

Part of the problem lay in problems associated with "naked acres", which occur when a farmer continues to receive high levels of subsidy payment but no longer farms at that level.

"Indeed, if we were to implement the regulation referred to then farmers who hold other jobs – such as a crofter who also works as a teacher – would no longer be eligible for SFP."

However, the spokesman said there was a still a commitment from the Scottish Government to finding a fairer method of distributing support and it would continue to explore any potential to use the regulation.

NFU Scotland stated that better targeting public support at those producers who are actively contributing to Scotland's food and farming sector was one of its policy priorities but the union admitted defining "activity" was not easy.

President Jim McLaren suggested that a recent exercise carried out in the Less Favoured Areas of Scotland might provide the key.

Producers in these areas have been asked to provide the numbers of cattle and sheep on their farms. From this data it is possible to consider different minimum stocking densities for different qualities of land and thus to define a minimum level of activity.

This would, the union maintains, provide information for the Scottish Government to scale funds back from those who have significantly reduced or stopped keeping livestock.

"Then, crucially, this would allow the LFA payment rates to be raised in the Standard area for active hill units, matching the significant uplift in rates already secured for the Fragile and Very Fragile areas.

A similar exercise in the rest of the country would be a vital part of delivering SFP after 2013.

"We believe that by recognising and rewarding productivity we will help protect the multiple public benefits arising from agricultural production."