If European budget negotiations over the next year are successful, £150 million in annual funding could deliver massive benefits to the Scottish countryside and rural communities, according to NFU Scotland Chief Executive Andy Robertson. Mr Robertson was speaking at the Scottish Agricultural College’s Outlook Conference in Edinburgh today.

In his talk, Mr Robertson highlighted a number of priorities for delivering funding under the European Commission’s new Rural Development Regulation (RDR), which will come into force from 2007. NFUS has stressed that spending priorities should include modernising agricultural businesses, adding value and making farmers stronger in the market place, supporting the industry’s next generation and encouraging environmental activity, including the development of renewable road fuels.

NFUS has also stressed that the potential of the RDR to deliver significant benefits to Scotland will be undermined in the absence of sufficient funds. During the last EU budget negotiations, a compromise proposal would have cut the budget by 20 per cent.

Andy Robertson also chairs the EU farming unions’ (COPA) rural development group, a key advisor to the European Commission on rural development policy.

Speaking at the SAC Conference at Murrayfield, Mr Robertson said:

“With discussion on the future of Scotland’s rural development spending underway, it is important we make our priorities clear.

“Farming is an economic activity and delivers benefits across the whole rural economy. Scotland has taken the lead is recognising that and it is the foundation upon which our agricultural strategy is based.

“Yet, CAP reform has been the catalyst for serious thinking in many businesses. For many farms, when subsidy is taken out of the equation, the sums don’t add up. To achieve rural development goals, the activity on these farms needs to continue. That is where the RDR can play its part, in particular by helping to improve competitiveness. That means developing schemes like the existing business development grants which help fund on-farm improvements. Likewise, the Processing and Marketing Grant Scheme, whilst not targeted at farm level, helps the industry to escape commodity markets and adds value to our produce.

“There are few funding vehicles that have the potential to deliver the widespread benefits that the RDR is capable of; the negotiations in the coming months must ensure it has the resources to fulfil its potential.”

Welcome For Minister’s Single Farm Payment Commitment
Renewable Fuel Boost for Farming and Environment
Dairies Must Work With Farmers To Secure Future