GORDON DAVIDSON

CHANCELLOR Philip Hammond's words of comfort for UK farmers about the continuity of agricultural support during the Brexit process do not go far enough, according to Scotland's Cabinet Secretary for the Rural Economy, Fergus Ewing.

On the surface, the industry could not help but welcome Mr Hammond's weekend pledge that Pillar One farm support budgets would be maintained until 2020 – although with Article 50's two-year exit countdown yet to be triggered, it seems likely that the Chancellor was merely putting a positive spin on the fact that the UK and its farmers might still be in the EU system up til 2019, and as such, his 2020 pledge could amount to no more than a guarantee of one transitional year's worth of EU-level payments.

But Mr Ewing's criticism was aimed at Mr Hammond's lesser pledge with regard to the Pillar Two EU budget – that EU funding would be matched for all agri-environment and structural schemes agreed before this year's Autumn statement. Effectively, this calls time on the wide-ranging Scottish Rural Development Programme, and cuts off a stream of money that has been of particular benefit to Scotland's more remote communities.

In response, Mr Ewing asked for an extension to cover the £360 million of European money that, he estimated, would otherwise have been coming Scotland's way: “While the guarantees offered by the UK Government helped to remove some uncertainty for our farmers and fishermen, it is clear that it simply does not go far enough," he said.

“EU funds provide significant benefits to the rural economy, creating and sustaining jobs often in areas where circumstances are challenging. They are a critical support mechanism for the agricultural and fishing industries.

"That is why I am calling for the UK Government to go further and extend that guarantee to cover in excess of £300 million for CAP pillar 2 and £60 million EMFF funding that remains at stake. This would provide the clarity and certainty rural Scotland needs.”

At the same time, the UK farming unions, speaking as one, highlighted another wrinkle in the Brexit plan for farming – while Mr Hammond has pledged to maintain funding at EU levels up til 2020, if actual Brexit was achieved before then, the devolved administrations would technically be at liberty to spend that money however they pleased.

The farming unions from Scotland, England, Wales and Northern Ireland therefore described it as 'essential' that all devolved governments now guarantee that Treasury funds will be spent on agriculture as announced, and not fall prey to the intense competition for public spending post Brexit.

NFU Scotland president Allan Bowie said: “We know that each devolved administration is facing significant spending pressure, however the Chancellor has been clear, he expects each of the devolved governments to use the money for agriculture. This is the clear intention for which the money has been guaranteed."

NFU president Meurig Raymond said: “This guarantee of domestic agricultural budget through to the end of 2020 provides vital assurance to farm businesses during the uncertainty of political negotiation and market volatility. We are also pleased that we have been given some clarity on how agri-environmental funding sits within this and will work with government on how this is developed long-term.”

NFU Cymru president Stephen James highlighted the importance of securing time for farm business to plan ahead: “The announcement also buys time to build a clear path for agricultural policy beyond the point the UK leaves the EU.

“Further, commitment to honour EU agreements, even where these go beyond projected ?Brexit, is very important as this protects significant public benefits, and the farm businesses supplying these benefits, built up over decades.”

In addition, UFU president Barclay Bell said: “The UK Government's guarantee means that farmers are able to continue to fulfil their role of providing high quality food, produced to exacting welfare and environmental standards.”

For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk