Tag: Scotland

Scottish BPS 2018 Applications

The 2018 Single Application Form (SAF) window opens on 15th March in Scotland.  All guidance can be found on Rural Payments and Services at https://www.ruralpayments.org/publicsite/futures/topics/apply-for-funding/single-application-form/  The SAF needs to be completed to claim payments for any of the following schemes:

  • Basic Payment Scheme – Including Greening and the Young Farmer Payment
  • Scottish Suckler Beef Support Scheme
  • Scottish Upland Sheep Support Scheme
  • Less Favoured Area Support Scheme (LFASS)
  • Agri-environment Climate Scheme
  • Forestry Grant Scheme
  • Beef Efficiency Scheme
  • Rural Development Contracts

Claims can be made online or via a paper application.  Online is obviously the preferred method, but if applying on paper, copies can be collected from local area offices.  It is possible to download blank Base Forms and Data Sheets, but downloaded Base Forms will not be accepted.  Only Base Forms given out by the area offices will be accepted.  Downloaded and computer generated Data Sheets may be accepted in certain formats; see scheme guidance.

The deadline for claims without penalties is the usual May 15th this year.

SRUC Brexit Analysis

A report analysing the impact of post-Brexit scenarios on different farm types has found that Scotland farmers will be worse off in every case, than under current trade arrangements.  The report undertaken by Scotland’s Rural College analysed the potential economic impact of three scenarios; bespoke Free Trade Deal with the EU similar to the Single Market; World Trade Organisation default Most Favoured Nation tariffs and Unilateral Trade Liberalisation on four farm types; beef, sheep, dairy and crops.  The report found all farm types were worse off under all three scenarios, the sheep sector in particular is under threat.  If the removal of direct payments, from current levels is also combined, the situation would be significantly worse.  The full report can be downloaded at:https://www.sruc.ac.uk/downloads/file/3606/assessing_the_impacts_of_alternative_post-brexit_trade_and_agricultural_support_policy_scenarios_on_scottish_farming_systems

LFASS Loans

The Scottish Government has announced it will be offering a nationally-funded loan for the 2017 Less Favoured Area Support Scheme (LFASS).  Similar to the BPS, the processing of payments is not at a stage at which advance payments out of EU funds would be permissible, therefore the loans will be made from domestic funding.  Eligible hill farmers and crofters will be offered loans of up to 90% of their estimated LFASS payment.  Balance payments will be made once the claims have been fully processed.  Offer letters, will be sent out in batches, commencing at the end of February and continuing as claimants’ eligibility is confirmed.  The first payments will be made at the beginning of April.  The scheme should pay around £55 million to about 11,275 businesses.

Farm Incomes in Scotland

Farm profits in Scotland are estimated to have risen by 36% last year.  This finding comes from the Scottish Government’s first estimates of Total Income From Farming (TIFF) for 2017.  TIFF, the aggregate return for the farming industry, is estimated to have increased by £245 million compared with 2016, which, in-turn, saw a modest increase of 5% over 2015.  TIFF is based on a calendar year and therefore these ‘first estimates’ for 2017 are pretty soon after the year-end.  Accordingly, the figures contain a large number of forecasts, but the Scottish TIFF is estimated at £917 million, which is the third highest since 2000 in real terms.

Milk and barley have contributed most to the increase.  In the dairy sector, the milk price increased by 28% compared to year-earlier levels and with a slight increase in production, the overall output from milk rose by £117 million to £434 million.  In the cereals sector, the barley harvest saw a 10% increase, which together, with improved prices saw the value of barley increase by 36% (£67million) to £128 million.  Wheat output also increased due to better prices.

Overall income from the grazing livestock sector saw a small increase in value compared to 2016.  The beef industry is the largest in Scotland.  Throughout 2017, prices remained slightly above year-earlier levels; total output from slaughter and sales of cattle is estimated to have been £716 million.  Higher prices in both the sheep and pig sectors also saw values increase.  The poultry sector saw a small decline (to £80m), whilst the value of eggs increased by 8% to £89 million.

The potato sector saw a 4% increase in value, mainly due to a strong ware harvest which offset poorer prices.  The value of seed potatoes remained pretty steady.  There has been strong growth in the Scottish vegetable sector over the past two years, output is now estimated to stand at £155 million.  In contrast the fruit industry has fallen over the same time period, but is still historically strong at £134 million.

On the costs side, feed, fuel and labour are estimated to have increased.  Fertiliser, after falling in 2016 is estimated to have remained steady in 2017.  This all results in an estimated increase in costs in the region of 7% compared to 2016.

The full publication, which can be found at www.gov.scot/Publications/2018/01/1265 also includes comparisons with other parts of the UK.  This shows that income from farming in Scotland (and Wales) is below other areas.  The highest level of income from farming in Scotland (on a per Ha basis) was in the North East.  In terms of productivity (the amount of output per input, irrespective of price); this has  improved in four of the last five years.


AECS Opens

The Scottish Government has announced the re-opening of the Agri-Environment Climate Scheme (AECS) for 2018.  The scheme encourages farmers to adopt environmentally friendly land management practices and helps businesses adapt to climate change.

The window for applications opened on Wednesday 17th January 2018 and closes on Friday 13 April 2018.  For collaborative applications involving 5 or more businesses the deadline is extended to Wednesday 31st May.  For more details see – https://www.ruralpayments.org/publicsite/futures/topics/all-schemes/agri-environment-climate-scheme/agri-environment-climate-scheme-full-guidance-menu/agri-environment-climate-scheme-how-to-apply/

LFASS Payments

Farmers and crofters will receive more through LFASS payments for 2018 than expected.  The Scottish Government has confirmed that hill farmers will receive 100% of their 2017 payment in 2018 rather than the 80% that was previously announced.

Readers will recall that under EU rules 2017 was supposed to be the last year that the current LFASS  would have been able to operate, as the EU is moving to new ‘Areas with Natural Constraints’ classification.  However, the Scottish Government took up the option to keep the scheme and make ‘parachute payments’ which effectively allowed it to make payments of 80% of those received in 2017 for the 2018 year.  But following a decision by Brussels to defer any LFA changes until 2019, farmers and crofters will now receive 100% of their payment.

Brexit and Rural Scotland

A report has been issued into how Brexit will impact Rural Scotland.  Prepared by the National Council of Rural Advisors, it is an document ahead of a more detailed set of recommendations to Ministers in the spring.  The main areas of concern outlined (not surprisingly) are access to labour, trade, funding for rural areas, and regulation post-Brexit.  The report can be found at – http://www.gov.scot/Resource/0052/00528196.pdf

Scottish Residential Tenancies

New residential tenancy legislation in Scotland comes into force as from 1st December.  The introduction of the Private Housing (Tenancies) (Scotland) Act 2016 will mean any existing Short Assured and Assured tenancies will continue, but new tenancies granted in the private rented sector from the beginning of December will be Private Residential Tenancies.  The new Tenancy will;

  • be an open-ended tenancy, which means a landlord will no longer be able to ask a tenant to leave simply because the fixed term has ended
  • provide more predictable rents and protection for tenants against excessive rent increases
  • include the ability to introduce local rent caps for rent pressure areas
  • provide comprehensive grounds for repossession that will allow landlords to regain possession in 18 specified circumstances

More information can be found at https://beta.gov.scot/policies/private-renting/private-tenancy-reform/ including guides for Landlords and Tenants and a model Agreement.