NFU Scotland has welcomed the agreement reached in Luxembourg last night (Monday 20 June) of a new seven-year framework for supporting rural communities across Europe. However, the exact budget available for the schemes under new Rural Development Regulation and the value and impact of the support for Scotland will remain unclear until the current negotiations on the whole EU budget are concluded.

NFUS has welcomed the emphasis on improving the competitiveness of farm businesses, recognising that only profitable farms can deliver wider economic and environmental benefits.

At the summit of EU leaders last week, no agreement was reached on the future financing of the EU and there remains considerable disagreement amongst member states over Europe's future spending priorities. Therefore, whilst provisional spending plans have been agreed, the exact value of last night's agreement on rural development support for Scotland continues to be unclear.

NFUS will now be studying the fine detail of the agreement reached last night.

NFUS President John Kinnaird said:

"It is good news that the new rural framework has been agreed by EU Farm Ministers and I am pleased that Scotland's voice has been heard around the negotiating table.

"I welcome Mr Finnie's statement which highlights the need for investment to enhance the competitiveness of Scottish farms. We see this as central to agriculture delivering wider benefits for the countryside and rural communities. NFUS has argued that the UK's and Scotland's historical spend has failed to strike the right balance between this area of support and other areas, particularly agri-environment spending. This new deal should support the continued broadening of Scotland's rural development spending.

"Despite the good news at reaching a deal, the exact impact for Scotland's farms and rural areas will remain unknown until the current arguments over whole EU budget are resolved."