Plans to close Single Farm Payment loophole

9 Aug 2010
Calf sitting in a field

Cabinet Secretary for Rural Affairs and the Environment Richard Lochhead has approved rules which aims to ensure farmers receive subsidies based on their level of production and environmental activity.

Moves to tighten the rules include plans to close the loophole which allows some farmers to receive Single Farm Payments despite carrying out little or no farming activities. The rules are proposed in the short term recommendations from the Inquiry into Future Agricultural Support in Scotland chaired by Brian Pack.

Mr Lochhead said, "The industry and the Scottish Government are united in wanting financial support for agriculture delivered to only those carrying out genuine activity.

"As time goes by, we are all agreed that continuing to base payments on levels of activity carried out years ago is plain wrong. Although this remains a complex issue to resolve, hopefully so called slipper farmers will now see that the writing is on the wall.

"Tightening the rules to ensure that land has to be grazed and kept in good condition will strengthen the link between Single Farm Payments and farming activity.

"We will now work up an implementation plan, in consultation with stakeholders, so that the strengthened rules are in place from 2011."

The short-term report details the Inquiry's recommendations for actions which can be implemented between now and 2013. The recommendations are that:

  • No change is made to the current basis of allocating Single Farm Payments prior to 2013
  • New computer systems are developed to deal with pending changes to the support regime
  • Scottish legislation on undergrazing, and the accompanying guidance for Scottish Government inspectors, should be tightened up in order that Single Farm Payment only goes to active farmers
  • New entrants to farming should be given high priority as the post-2013 arrangements are negotiated
  • The scoring system for the Rural Priorities scheme should favour new entrants
  • No additional use should be made of Article 68 measures beyond the Scottish Beef Calf Scheme, and that the Beef Calf Scheme be retained after the current EU approval runs out

The Inquiry into the Future of Agricultural Support in Scotland was set up in June 2009 and is chaired by Brian Pack. Mr Pack published his short term recommendations in June 2010 and a full report is expected later in the year.

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