NFUS has emphasised that the proposed EU budget compromise tabled by the UK, as it stands, would represent a massive blow to the Scottish countryside.

The proposals could result in the £150 million in funding used to support environmental and rural development work across Scotland being slashed by anything from 20-40 per cent.

The proposed budget could also lead to farmers in Scotland losing up to 20 per cent of their support payments via modulation, with no match-funding from the UK Treasury. This level of modulation would be sought by the UK government to try and plug the massive hole created in the rural development budget. Also, at least 7 per cent would be removed from support payments to pay for the incorporation of Bulgaria and Romania into the Common Agricultural Policy. On top of this, there are existing cuts of 11% in the Single Farm Payment’s beef element to pay for the Beef Calf Scheme, a 6% scaleback on the extensification element and between 3-8% to pay for the national reserve.

NFUS believes that cuts on this kind of scale could lead to a serious and hugely damaging decline in farming activity, with huge knock-on consequences for environmental management, the local food industry and food security.

NFUS President John Kinnaird said:

“The current budget proposal, if agreed, would represent a massive blow to Scotland’s countryside and rural communities. The UK Government signed up to the reform of the Common Agricultural Policy just two years ago; an agreement the Cabinet hailed as a massive achievement. This budget tabled by the UK would not only represent a massive u-turn from that position but would raise serious question marks over the future investment in the Scottish countryside.

“I have absolutely no problem in having a serious debate about the future of the Common Agricultural Policy. But that means a debate about the kind of farming industry we want and the consequences for the environment, food industry and countryside of supporting changes which result in a dramatic decline in farming activity in this country. This is certainly not a reasoned debate. This is reform by the backdoor thanks to a proposed budget that has been cobbled together to get a deal before the UK vacates the Presidency chair.

“If the Prime Minister thinks that farming is expendable he needs to consider the hundreds of thousands of jobs reliant on the industry. The agri-food sector is the UK’s largest manufacturing sector. Likewise, Mr Blair’s environmental credentials will look extremely shaky if we end up increasing our reliance on imported food produced halfway round the world to lower standards.”

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