UPLAND farmers are “struggling to understand” why Scotland’s is having to wind down its Less Favoured Areas Support Scheme, which has long been valued for its targeted contribution to the country’s more marginal livestock producers

Responding to the news that 2017 will be the last proper year of the LFAS scheme, National Farmers Union Scotland president Andrew McCornick acknowledged the efforts of both the hill farming sector and the Scottish Government to convince the EU to stay its axe, but admitted that these channels were now ‘exhausted’.

The industry now had to get used to the idea that next year’s LFASS would offer only a reduced ‘parachute payment’ easing the scheme to a close: “Post-Brexit, we will have the chance to design a support scheme for Scottish hill farmers and crofters that will be fit for purpose but, for now, this parachute payment must act as a stepping stone,” said Mr McCornick.

“With 80% of existing support on offer, we are now in discussions with Scottish Government on a targeted menu of easily accessible small capital grant schemes and additional elements that will give LFA farmers and crofters an opportunity to access the remaining 20% of funding. Securing the budget and delivering it in a way that is available to all is our next priority.”

The LFA is going because the EU wants to see such schemes replaced using its new system for classifying less-than-ideal agricultural land - 'Areas Facing Natural Constraint'. Despite enthusiasm in Brussels, the ANC concept has found little favour with NFU Scotland, which has criticised its “onerous and restrictive rules”.

“While the parachute option is not ideal, it is significantly better than the cliff edge of ANC payments that active upland beef and extensive hill sheep producers faced," said Mr McCornick. "At this turbulent time for farmers, that certainty of support in the future has a premium.”

Commenting on the hill support changes, Scottish Beef Association chairman Neil McCorkindale said: “The SBA fully supports the parachute payment proposal for LFASS which is the best option available in the short term. We also acknowledge the continuous engaging of Scottish Government with the industry stakeholding groups in reaching difficult decisions in such an uncertain time."

However, the Scottish Crofting Federation has expressed its “deep disappointment” at the Scottish decision to dodge the planned Areas of Natural Constraint support scheme, which, it claimed, would have sent much more money towards the crofting counties.

“The government has reneged on its promise,” said SCF chair Russell Smith. “LFASS was to be replaced with the ANC scheme which would be much more favourable for those constrained areas that actually need the support.

“LFASS has been consistently misused by Scotland to divert public money intended for support to the fragile areas to act as a ‘top-up’ for the industry farms on better land,” claimed Mr Smith. “Crofters have had to put up with being thrown the scraps for decades, but the European directive that LFASS has to stop by the end of this year looked like the light at the end of the tunnel for marginal areas.

“ANC could have replaced LFASS years ago ¬- but agricultural industry lobbyists convinced ScotGov to keep the change until the last minute. So, instead of an expected increase in payment, crofters are faced with the certainty of a 20% cut in support. This seems to be the worst of all options for crofters.”

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