Chamber and committees

There has not been a reduction to the 2019 Flat Payment Rates for Region 1 or Region 2.

The 2019 Flat Payment Rates for payment region 1 and 2 and were originally modelled to be 145/ha and 25/ha respectively. The rates were reviewed in June 2016 when a significant proportion of the Single Application Form (SAF) 2015 processing was complete. This was the first time actual areas were able to be used in the rate calculations as opposed to estimates based on previous years declarations. The rates were re-calculated at 161.14/ha and 26.90/ha. The increase in rates was notified to farmers. No change to these rates has been made since.

The Rural Payments and Services (RPS) system incorrectly implied that the payment rates in 2019 might be 167.33 for region 1 and 28.19 for region 2, as a result of it wrongly applying the budget adjustment rate used for 2015. This has now been adjusted to show the correct payment rates for 2019 of 161.14 and 26.90.

We apologise for any confusion caused to customers.

[The change in rates quoted in the question is as a result of Rural Payments and Services (RP&S) incorrectly applying the budget adjustment factor set for 2015 to scheme years 2016 to 2019 in error. For example:

Region 1 2019 Flat Payment Rate: 161.14 * 1.03841119 = 167.33

Region 2 2019 Flat Payment Rate: 26.90 * 1.04788694 = 28.19

The budget adjustment factor for scheme years 2016 to 2019 have been corrected and set to 1.00 which results in a value of 0.00 being applied. Budget Adjustment is a mechanism for respecting the net ceiling each year and will be reviewed each year prior to balance payments commencing.]

No businesses have received all their CAP Pillar One payments. However 8384 businesses out of 17,767 who applied and are currently assumed to be eligible have received 90% of their total Basic Payment Scheme (BPS) and Greening payment. The balance BPS / Greening payments are expected to commence from May 2017 and will include Young Farmer Payment where applicable.

Pillar One payments in respect of Scottish Suckler Beef Support Scheme (SSBSS) are expected to commence in late April or May 2017 and Pillar One payments in respect of Scottish Upland Sheep Support Scheme (SUSSS) are expected to commence in May 2017.

2016 Basic Payments will be paid in two parts. Those farmers and crofters who applied for a National Basic Payment Loan Scheme payment, will have the loan payment deducted from the first instalment, with the balance to follow.

The Futures IT Project delivered Rural Payments & Services (RP&S), this service has been operational since December 2014 and has been used by customers and staff to submit and process scheme applications to payment made from 2015. RP&S has been specified and designed to meet all current EU requirements where it is appropriate to do so.

On 4 April 2017 the Scottish Government announced a new loan scheme is being established to provide support to Less Favoured Area Support Scheme 2016 applicants while payments are being processed. Letters will begin issuing to eligible farmers and crofters before the end of April with further details and inviting them to apply.

Decisions on the implementation of greening in Scotland were closely related to decisions on the percentage of the Scottish Pillar 1 budget to transfer to Pillar 2. In 2013, the Scottish Government decided to transfer 9.5% (of a maximum 15%) of the Pillar 1 budget to Pillar 2, compared to 12% in England and 15% in Wales. The lower rate of transfer in Scotland was designed to protect payments for farmers, in order to enhance their competitiveness. The design of Scottish greening rules aimed to compensate for the smaller contribution to Pillar 2 by seeking to ensure that greening is effective in delivering its intended environmental outcomes.

No comprehensive assessment has been made of the impact on farm competitiveness of differences in greening rules throughout the UK. However, the Scottish Government has asked Professor Russel Griggs to chair a group to review Scottish greening rules and to recommend how the available policy and support mechanisms can be used most effectively in Scotland to promote sustainable and profitable farming.

The Scottish Government supports the development of coastal towns and communities through a range of initiatives. Since 2012, the UK wide Coastal Communities Fund has delivered over £17 million of funding to coastal communities in Scotland.

The Scottish Government also provides £6.5 million of funding to eight Fisheries Local Action Groups in Scotland, through the European Maritime and Fisheries Fund. This funding is designed to support a range of projects which deliver, economic growth, social inclusion and job creation.

Scottish Ministers are committed to ensuring the devolution of the Crown Estate management, assets and revenues to Scottish control, maximises economic opportunities for our coastal and rural communities.

We have met with the NFUS on a number of occasions both before and after the scheme opened to applications. Following discussions with their Livestock Committee we made changes with regard to the timeline for weighing calves. We are in regular contact with the NFUS and at a recent meeting agreed that we would provide a simple list of 'what to do and when' that they will issue to their members.

We are aware that one of the issues concerns the reference year of 2015 and the ineligibility of animals bought after this period. There is no scope within Scottish Rural Development Programme to alter the base reference year. This has been explained in detail in a letter sent to the NFUS in 2016.

£6.8M has been committed to the Start-Up schemes currently leaving £1.2M from an indicative budget of £8M. The Scottish Government is determined to continue to support deserving new businesses and ensure the continuation of the start-up schemes.

£4.3M has been committed to the Capital Grant Scheme which remains open to applications on a continual basis.

Total Number of

Applications Grants

Received* Paid Out

(i) New Capital Grant Scheme 496 65

(ii) New Entrants Start-Up Grant Scheme 69 18

(iii) Young Farmers Start-Up Grant Scheme 458 110