Setting out timescales to help the sector plan for the changes to farm support, introduced from 2025, the map’s a significant departure from the CAP-based subsidy system, which has been criticised for its lack of value-for-money, effectiveness, and alignment with modern environmental, social and economic targets.
While we still need to see a lot more detail added to the available route map, the sector has cautiously welcomed it as a means of potentially improving resilience, efficiency and profitability, industry-wide.
Key objectives
One of its key objectives is to develop a new public support system for land management in Scotland, based on delivering public goods and services.
This means that crofters, farmers and landowners will be financially rewarded for positive environmental, social, and economic outcomes they generate, rather than for simply owning or working the land.
The intention here is to incentivise farming practices that, for example, support biodiversity, reduce carbon emissions and improve water quality.
The route map also recognises the role agriculture can play in tackling the climate crisis.
The government has committed to working with farmers and land managers to reduce greenhouse gas emissions and hopes to sequester carbon in soils, trees, and other vegetation.
This will involve a range of measures, including increasing the uptake of agroforestry, promoting low-carbon livestock production, and supporting the development of renewable energy and biofuels.
The route map also places a strong emphasis on social justice and inclusion.
The government says it recognises agriculture is essential to rural economies and communities and that support must be targeted to those who need it most, for example to smaller farmers, new entrants, and those in more remote and disadvantaged areas.
Four tier model
To that end, the route map sets out a four-tier framework model for support post-2025.
Tier 1 — base — supports active farming and food producers with payments being conditional on essential standards to ensure climate, biodiversity and business efficiency outcomes
Tier 2 — enhanced — supports businesses to help deliver climate and biodiversity targets and to build on the standards in Tier 1. This is for organisations that are highly effective in farming and crofting and are successful in reducing greenhouse gas emissions, restoring and improving nature and adopting regenerative farming practices
Tier 3 — elective — will support individuals, co-operatives or groups to increasingly manage land more sustainably. This will focus on targeted actions to support nature restoration, innovation and supply chains
Tier 4 — complementary — provides applicants with the skills and advice needed to take up the suite of management options, new practices and innovation under the other three tiers. This will include people development and measurement tool
The new framework will be phased in from 2025 to 2027, with the government saying it plans to work closely with industry representatives, environmental groups, and other stakeholders to design and implement this new system.
Analysis
Overall, the route map represents a significant shift towards a more sustainable, productive and fair agriculture sector and its announcement comes at an opportune moment, given the volatile events of the last few years.
It is also heartening to see that the government plans to work closely with stakeholders to develop and implement the new system.
There are, however, considerable concerns about the number of unanswered questions, not least the detail of how measures will be applied and what applicants will be paid.
Meanwhile, it’s a step in the right direction.
Hopefully the envisaged timescales will be met, and the new approach will deliver real benefits not only for farmers, but also for consumers and the environment.
Our team is well placed to help clients navigate new frameworks, point them in the right direction when it comes to accessing financial support, as well as adopt innovative, sustainable business practices.
If this article was of interest, you can read more commentary from colleagues on our news and views page.
Lynne McElroy
Senior associate
Lynne specialises in rural property and acts for a wide range of clients. She is experienced in dealing with the acquisition and sale of forestry, farms, sporting estates and country houses, leasing of rural property, advising on title conditions, security work (acting for both borrower and lender), telecoms mast site leases and voluntary registrations.
