Scottish hill farmers qualified for the uplift in EU farm payments, but the UK Treasury has only distributed about £30m

NFU Scotland has written to Michael Gove asking for the UK government to look into the "long-running issue" of EU subsidies it says is owed to farmers north of the border.

The Scottish government and Westminster have locked horns in the long-running dispute over where the extra Common Agricultural Policy (CAP) funds should go.

The farming union has now written to the Defra Secretary calling for a Westminster review into the CAP convergence uplift of 2013, despite agreements in November 2017 to conduct a review.

The Scottish farming industry believes the UK was awarded the convergence uplift from the EU, as part of the reforms of the Common Agricultural Policy, because of Scotland’s low payment rate per hectare, which is approximately €130 (£115) per hectare.







CAP reforms set a threshold of 90 percent of the EU average payment rate per hectare, which equated to about €243 (£214) per Ha.

The UK’s average rate per hectare fell below the 90 percent threshold because of Scotland’s very low average payment rate, which is only about 45 percent of the EU average.

Consequently, the UK will receive an extra €223 million (£190 million) over a six-year period. The UK Treasury has only distributed about £30m to Scottish farmers, with the industry now demanding the rest.

Since late 2013, NFU Scotland has asked three successive Defra Secretaries of State, and the current Farming Minister George Eustice, to recognise Scotland’s lower-than-average payment rate via a review.

And successive commitments have been given by UK Government ministers stating that a review of the internal allocation of UK CAP funding could be started once each of the devolved administrations had implemented the new CAP, but this has not been done.

'Must be fairly resolved'

NFU Scotland said it is "disappointed" in the UK Government, who agreed to conduct a review in November 2017 but the notion was "swiftly kicked into the long grass" due to "open-ended delays".

It follows evidence given by Mr Gove to two Scottish Parliamentary committees recently and his attendance at the recent Royal Highland Show in Edinburgh.

Despite appearing at the two, he has given timetable to begin a review.

NFU Scotland President, Andrew McCornick said: “When we met with Mr Gove at the Highland Show we left him in no doubt that this long-running issue is critical to the future interests of Scottish agriculture. Despite discussions at the Highland, and intense questioning by MSPs last week, we appear to be no further forward.

“The UK’s CAP budget convergence dividend issue must be fairly resolved to provide the financial base upon which to build future Scottish agricultural policy. This review must also be about agreeing the framework for agricultural spending post-Brexit and beyond the requirements of the CAP.

“We are convinced that this issue can be swiftly and effectively resolved by undertaking the promised review based on non-historic allocations and objective analysis.

Mr McCornick added: “There is a clear opportunity for the UK Government to show an unreserved commitment to Scottish agriculture, and our Less Favoured Areas in particular, by honouring the pledges made to review made by successive Secretaries of State.”