Confusion over LFASS payments after SNP's 'workaround' examined

The SNP-led Scottish government may not be able to guarantee the level of support payments it makes to less favoured areas after this year, a committee has heard.

Compulsory changes to EU regulations mean payments must drop by 20% this year and 60% in 2020.

On January 10, the Scottish government's Rural Economy Secretary, Fergus Ewing, promised in the Holyrood chamber that Less Favoured Areas Support Scheme (LFASS) payments would not fall below 80% of current levels in this year or next.

But Holyrood’s rural economy and connectivity committee has heard this is dependent on Mr Ewing finding a “workaround” despite being bound by EU regulations.

Scottish Conservative MSP Peter Chapman asked Mr Ewing whether farmers could bank on a 20% reduction as was previously promised, or would LFASS in fact reduce by another 60% in 2020.

North East region MSP Mr Chapman said it had been widely reported the 2019 LFASS money would be cut by 20% and then 60%, only for Mr Ewing to guarantee the level at 20%.

He asked: “Now I very much welcome that, but I just wonder what has changed in three days? Did the EU change the rules or is this money a new scheme?

Mr Ewing replied: “The position in respect to next year is that according to EU CAP rules the payment, maximum payment under the regime can be 80%.

“The issue of going down to 40% (in 2020) is simply that the EU rules have changed.

“Next year we have committed to maintaining it at 80% and the year after that we have committed to finding a workaround in order to maintain it at 80%.”

Mr Chapman asked the SNP cabinet secretary how certain he was that a lower cut could be made next year, adding: “You are talking about a work around, we will still be under EU rules as I understand it, is this going to be allowed?

“How confident can our farmers be that you will be able to maintain a 20% cut rather than a 60% cut in the year 2020?”

Mr Ewing replied that a workaround “cannot be established other than in theory”, adding: “It would only be with great reluctance and if there were no other options that we would be forced to see reduction at 80%.”

NFU Scotland previously warned the net result of cuts to LFASS, unless reversed, will be a further demise of the more extensive livestock sectors, the red meat sector in general, the Scotch brand it underpins, and the risk of yet more land abandonment in some quarters.