Scotland farmer subsidies: Scottish minister says there will be 'no cliff edges' when it comes to post-Brexit support for farmers

Farmers have been calling out for more clarity on detail on the upcoming changes to subsidy scheme post-Brexit.

Scottish farmers will see financial support from the Scottish Government continue when the existing subsidy scheme through the EU ends next year, a Scottish minister has promised ahead of a debate on the future agriculture policy in Scotland.

Farmers are currently able to apply once a year for the Basic Payment Scheme (BPS) from the EU’s Common Agricultural Policy payment system, which will run until 2024. But with time running out, the agriculture sector is crying out for more clarity on what will replace the current scheme.

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Rural affairs secretary Mairi Gougeon says there will be "no cliff edges" when it comes to financial support for farmers in Scotland (pic: PA)

When asked by The Scotsman if she could provide detail on future subsidy payments, rural affairs secretary Mairi Gougeon said: “We have tried to give as much clarity as possible.

"We want to make sure we are phasing these changes, so that we do have that just transition. It’s important to remember that we have committed to maintaining direct payments.

"We will not see any cliff edges when it comes to support for farmers. They are not going to see support one day and have it cut off the next.”

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Mairi Gougeon said the Scottish Government has tried to give as much clarity as possible on future farming payment schemes for when the current EU subsidy system comes to and end next year (Katharine Hay/The Scotsman)

The proposed new scheme has four payment tiers – base, enhanced, elective and complementary.

Base is said to likely be a small percentage of the current direct payment to provide some support to businesses on the proviso they meet some basic “essential standards” such as basic environment practices and statutory management requirements.

Enhanced is set to financially incentivise payments for businesses that are highly effective in reducing greenhouse gas emissions and carrying out nature restoration and enhancement.

Elective will be more targeted funding for climate mitigation projects and nature recovery as opposed to enhancing agricultural production practice. The complementary tier provides supporting services to farmers doing continuous professional development (CPD), advisory services, tree planting, woodland management, and peatland restoration and management.

Ms Gougeon said: “We have said that 50 per cent conditionality will come into effect 2025 and then we’ll introduce the second tier of the new framework in 2026. We want to make sure we are phasing these changes, so that we do have that just transition.”

With £620 million of Scottish agricultural support coming from Westminster, a critical question posed by the sector is how that funding will be allocated by the Scottish Government with its proposed four tier framework, detailed above, from 2025 onwards.

National Farmers Union (NFU) Scotland said direct support for the country’s farmers and crofters added up to about £550 million a year, but with no certainty beyond next year.

With the total figure for Scottish Government’s Agriculture and Rural Economy (ARE) spending equivalent to about £680m, it means some 80 per cent is paid out as direct support, the union said.

NFUS wrote to Ms Gougeon ahead of the agriculture debate in the Scottish Parliament on Thursday calling unequivocally for 80 per cent of the future funding package to continue to be dedicated as direct support to tiers one and two of the new scheme.

The union’s president Martin Kennedy said: “The successes we are all seeking as a nation around food security, climate and nature will require buy-in and commitment from all Scotland’s farming and crofting businesses.

"Allocating at least 80 per cent of Scotland’s total agricultural budget as direct support payments via tiers one and two of the proposed agricultural support framework for Scotland will deliver this.”