AgriScot 2023: Cabinet Secretary speech

It’s a privilege to be with you again at this event - a highlight of the year for our sector. And to be on this panel with Martin Kennedy, President of NFUS and co-chair of ARIOB. On Martin’s last point regarding food labelling, I’m happy to meet with him and Food Standards Scotland to discuss how we might take this work forward.

So much has happened since AgriScot 2022. There are successes to celebrate, but also heartbreaking setbacks, such as the damage caused recently by record rainfall and Storm Babet.

Many of you are still coming to terms with the devastating impacts of extreme weather on your produce, your land – and of course your families and your communities.

I’ve heard and seen first-hand the impacts of flooding on high-value crops. But I’ve also seen great resourcefulness in the face of adversity, in helping each other and supporting communities.

Immediately after Babet, I announced that I would look at what more we could do to support the repair of damaged flood banks.  

I can confirm today that the Scottish Government has now established and funded a scheme for flood bank repair. I have set aside a budget of £1.8 million and the scheme will open for applications next week, offering up to £30,000 per individual business to reinstate flood banks to their pre-damage levels.

Guidance will be available online shortly and I would encourage anyone whose floodbanks have been damaged by recent weather to apply.

Nature of course can be both your friend and your foe.  You are dependent on it, and also often at its mercy.

We are all aware that we face a nature crisis and we all need to do more to protect and restore nature.  That is why we will expect you to do more in the future in return for your funding in this regard.

But I am acutely aware of the significant impact that wildlife and plants can and do have on your businesses - I’ve seen beavers’ burrows in flood banks in Tayside, and know the impact sea eagle predation can have on livestock. Avian flu is still causing difficulties for egg production, deer for forestry and geese are impacting pasture and crops.

I understand that working to protect and restore nature and address biodiversity loss can also result in unexpected costs, impacts and stress. We are working with businesses to find practical ways to mitigate and prevent this damage.

We are also keen to help you protect the investments you make in nature.  We know more of you want to integrate trees into your businesses and doing that means being able to protect against invasive plant species like bracken.

So I can announce today that we are tripling the grant rate for the costs involved in controlling bracken, helping more farmers and crofters get new trees in the ground at a time when the costs of doing so are rising.  

Not only are you living and working in the front line of nature, but also with climate change.

That is why the future framework for support – which we are co-designing with the sector – will help with adaptation and building resilience to withstand these events in future.

It’s also why we are already supporting farmers and crofters through the Agriculture Reform Programme to make changes to handle extremes in water availability, by improving soil management practices and planting trees. And through the AECS scheme, businesses are supported to manage water quality and flood risk.

Land managers can also undertake works including drain cleaning and removal of debris in rivers without a licence from SEPA.

I know that you are keen for us to explore allowing the dredging of rivers and burns.  I have been investigating the potential for that, but it is not clear that this would have much impact on flooding. SEPA, as our independent environmental regulator, works to ensure the best long-term, sustainable solution in terms of flooding and river management. Where dredging is deemed to be of benefit, SEPA can authorise this. In emergencies the process can be accelerated and I have been assured that where it will benefit resilience, this will be done.

We can and will adapt other schemes to climate challenges. For example, I announced in June that the Scottish Suckler Beef Support Scheme will continue. But from 2025, there will be conditions linked to shorter calving intervals, based on individual animals’ calving performance.

That is not only good for the planet, but also for your bottom line. Longer calving intervals mean longer periods during which a cow is incurring costs and emitting greenhouse gases - without contributing to beef production.

I also want our food production to become more secure and diverse, where climate and land types allow.

Producing more fruit and vegetables here in Scotland really matters, for many reasons. To make fresh, local produce more readily available in local shops; to support jobs in the agricultural sector; to increase our food security as a nation.

Creating more local food supply chains helps our carbon footprint too – especially if we can find ways to make the production as low carbon as possible. I realise that businesses cannot plan without knowing they will have the right workforce, and I will continue to press for clarity on how the Seasonal Worker Visa scheme will operate in 2024.

I want to talk about the progress we’ve made in developing the shape of future support, since I was with you this time last year.

But first, I have to mention the UK context we’re operating in, and what I and my colleagues are doing to address that.

We still have no certainty from the UK Government on post-2025 rural funding for Scotland. I’ll continue to be clear that we expect at least full replacement of EU funds.

While we push for certainty from Westminster, we’ve already committed to maintain direct payments to support active farming and food production in Scotland – now, and beyond 2026.

I have already made clear that there will be no cliff edges in support – the current schemes will continue until we transition to the new framework, and that transition will be a process, not an event.

We’ve set out next steps in our Agriculture Reform Route Map. And I undertake to set out by February the funding allocation for Tier 1 and Tier 2 farm payments. 

I recently attended the ANUGA trade fair in Germany and saw for myself the strong demand for our quality Scottish produce, which has maintained in spite of Brexit.

But Brexit has brought so many challenges. It has obscured our future funding. It has brought food price rises – with little benefit for you, the producers; it has resulted in fewer people to work in our economy, including in agriculture; and limited trading opportunities for food and drink businesses – which again affects you.

A key part of my job is to press the UK Government on such issues, which are making farming in Scotland harder. But we also work constructively and co-operatively across the UK. The recently published Border Target Operating Model was much improved by expertise from the devolved nations.  And we’re also working with the UK government to ensure it protects the UK - and by extension Scotland - from threats we face from diseases like African Swine Fever.

Yesterday, I wrote to the new Secretary of State at DEFRA, Steve Barclay. I stressed that we need to work closely together, for example on certainty of funding, the Border Target Operating Model, the Comprehensive Veterinary Agreement, the Rural Visa pilot, post-Brexit trade deals and personal imports of animal products.

I will continue to press on these issues and I aim to meet the Secretary of State soon.

There’s no denying we face challenges, yet we are still moving ahead with creating the support this sector needs for a strong and vibrant future.

The Agriculture and Rural Communities Bill has been introduced to Parliament, and begun its journey to being the basis for new kinds of support. 

It will enable a future payments framework that incentivizes low-carbon approaches but which also supports sustainable food production. As such, it will deliver the key ambitions set out in the Scottish Government’s Vision for Agriculture.

Our Route Map for agricultural reform was published in February. It sets out changes to the schemes we’re all familiar with; the measures being considered to address climate mitigation, adaption and nature restoration; when more information will be available; and how you can get involved.

For example, as well as detail on the funding allocation between tiers, we’ve committed that in the first quarter of 2024 we’ll publish detail on the Whole Farm Plan, on conditionality for BPS and VCS in the context of the beef support scheme in 2025; and what Elective support will be available in 2025.

In the second quarter, we’ll follow with the Payment Strategy for 2025-27 and guidance for BPS, VCS and other schemes available in 2025.  And we’ll continue to keep these details coming, as promised in the Route Map, so that you get clarity when you expect it, and can plan ahead.

Inputs from the farming sector to the development of the Bill have been valuable and much appreciated. And this work is continuing now through user testing, research and participation with farmers and crofters.

Some of this co-design work takes place in ARIOB, where we’re fortunate to draw on a wide range of practical expertise, academic research and policy support. I’ve relished the robust but respectful discussions we have at ARIOB, and the knack we’ve developed for finding a way forward together.

I’d like to thank Martin, my ARIOB co-chair, for his leadership and hard work. And all the members for their contributions.

Alongside the Agricultural Reform Route Map in February we also published a draft list of measures.  These are intended to illustrate the practices being adopted by farmers and crofters which support climate mitigation and nature restoration.

These measures focus both on land management and stock management, with measures outlined for the beef, sheep and dairy sectors.

The draft livestock measures are broadly related to nutrition, genetics, and livestock health.  In the dairy sector we have emphasised that measures should recognise the progress of genetic improvement in the sector, as well as breeding decisions which support reduced emissions intensity.  Some of these measures will be familiar to dairy farmers who are already working closely with their milk buyers to enhance the sustainability of their products.

Of particular interest to the dairy sector also is the intention to recognise uptake of methane-reducing feed products.  We’re seeing a lot of progress in development of products which can reduce methane emissions when incorporated in the diet - and I welcome views from the sector in how use of these products can be supported.

Knowledge transfer in our dairy sector is important to our climate mitigation goals. Since 2015 we have funded the Scottish Dairy Hub, a free-to-use information service to connect farmers and suppliers for the benefit of the Scottish dairy industry. I want to thank NFU Scotland for their support in the continued delivery of the hub.

We have also supported the Dairy Growth Board for several years - to help increase market penetration and expand the reach of our dairy sector to establish new markets abroad. I know that they have been to several speciality trade fairs in the last few years – including launching a Scottish cheese map - and I’m impressed by their work to create market opportunities in countries such as Canada, the USA and France. This helps some of our smaller artisan cheese companies develop, as well as creating opportunities for our larger brands.

I’m sure some of these issues will come up again at this afternoon’s session on the dairy sector, where my colleague George Burgess, Director of Agriculture and Rural Economy at the Scottish Government, will be on the panel.

We’re not only delivering on our strategic objectives to set our course for the years ahead. We’re also keeping our more immediate promises on financial support. I undertook to maintain the payment schedule and performance of last year, helping people with cashflow and to make investment decisions that benefit the whole rural economy.

We delivered on that. In fact, Basic and Greening payments started two weeks ahead of the 2022 start date, with money hitting bank accounts from 12 September 2023. 

As of this week, BPS and Greening 2023 payments worth approximately £393 million have been paid to 16,743 businesses. This means around 96.27% of eligible businesses have been paid, and 94.1% of anticipated expenditure issued.

 As we’ve already announced, LFASS payments start next month.

And I also intend to start AECS, Rural Priorities and Forestry Grant Scheme payments soon, to release more money into the economy.

As we develop our plans to fund the future, we need to make sure we are encouraging the next generation of farmers.

They are key to delivering so much of our ambition for the future of the agricultural industry and I am determined that we do all we can to support, enable and encourage more young people to stay in farming, and more people of all ages and both genders to get involved in farming and crofting.

In this regard, I want to pay tribute to the work of a number of people who have done so much in this regard.

First of all, Graham Bruce at RingLink whose resolute support and advocacy has ensured the Machinery Ring Pre-Apprenticeship Programme has played a key role in encouraging people onto the first rung of a career in farming or in a related supply chain industry.  I want our recent skills review to result in more opportunities and programmes like RingLink’s.

Secondly to Henry Graham, whose work leading Farming Opportunities for New Entrants (FONE) speaks for itself and I am very grateful that he continues to provide his valuable time and effort to progress this work.

The FONE Group has also spearheaded development of a pilot scheme to provide Practical Training for the Next Generation and I am pleased to announce that funding is now open for this two year fund.

The Fund will offer up to £500 per person for relevant practical land-based courses of their choice. There will be an emphasis on emissions reduction and biodiversity practices, but also other important areas such as health and safety and equipment training. 

Delivered by Lantra Scotland, the pilot aims to encourage new and prospective entrants into the sector, provide financial support to promote skills and offer a more flexible and individual approach to training. 

I can also announce that as part of our support for women in agriculture, we are launching a fourth round of their Practical Training Fund, also to provide up to £500 per girl or woman for relevant, practical land based courses, including business skills, health and safety, vehicles, machinery and equipment.

Over 860 women and girls have already been able to access a wide range of practical training. These have covered dairy fertility, hoof trimming, tele-handling, HGV and sheepdog handling.

The Fund is open to women or girls aged thirteen years and older, who are working in Scottish agriculture, keen to join the industry or are currently taking an agriculture course.

We also want to encourage innovation and new ideas. To support this, courses costing over £500 will be considered on a case by case basis, where applicants can demonstrate the added value to themselves or their business.

Further information about both Training Funds is on the newly available Skills Hub, on the Lantra Scotland website.

The third person I want to embarrass – sorry, thank – is Ian Davidson who has done so much to get the Land Matching Service off the ground and succeeding.

The Service has been supported by both the Scottish Government and the NFUS, and recently received very positive feedback from a formal evaluation.

That evaluation suggests that it is meeting a need. 

The SLMS acts as a free service, facilitating the engagement of those seeking or offering joint venture arrangements in agriculture.

Contacting the service is easy with registration being available online at slms.scot.  Once registered, the service will contact you to arrange for a confidential discussion.

We know that there are people out there looking to retire or to take a step back and involve a younger farmer in running their farm or to take ownership or control over completely.  The SLMS is designed to address that, but I regularly encounter people who don’t yet know about what it can offer.

So I can also announce today that we have commissioned SAOS to undertake research to take the Land Matching Service  to the next level, to help develop a five year strategy and business plan so that the SLMS is future-fit to increase the availability and flexibility of access to agricultural land for new and crofters and support succession in the sector. 

These investments make clear my and the Scottish Government’s commitment to supporting active farming in the future.

They underline how we in Scottish Government are committed to helping young people stay in rural communities and for more people of all ages to see an opportunity to get the skills they need to stay or move into farming and crofting.

We not only want there to be a next generation in Scottish farming, we are taking action to help make that happen.

Agritourism also creates opportunities for young people and new entrants. 

The Deputy First Minister attended the Agritourism conference in Perth today and announced the four new Agritourism Monitor Farms, supported by £440,000 of Scottish Government funding over this and the next two years.

The conference included a Q&A session with around 30 young people interested in starting agritourism on their farm or croft.

This followed up on a meeting I had a fortnight ago with the under-35s Agritourism Group, when they visited the Scottish Parliament. It is so fantastic  to see the enthusiasm of the next generation of our agriculture and rural leaders, determined to add value to their businesses.

We remain committed to introducing a Crofting Bill to reform crofting law and support the future of this hugely important area. I’m pleased that work is proceeding well between my officials and sector representatives to develop the content of the Bill.

Each year we’ve also helped support croft businesses by approving and providing over £40 million of support to ensure our crofting communities continue to thrive. Over the last two years we’ve also increased the Crofting Commission’s budget.

The Commission has reported that there are around 500 new entrants to crofting each year. The Scottish Land Matching Service Crofting Resource was developed by the Commission and the Scottish Land Matching Service (SLMS). Introduced in August, it enables those who are interested in becoming involved in crofting and those who have a crofting opportunity to offer, to register their interest, free of charge with the SLMS database.

The Commission has also launched a pilot project to encourage crofters to think about the future of their croft and to support them with succession planning. I’m confident that this  and the Scottish Land Matching Service Crofting Resource will create more opportunities for new entrants, whether through succession arrangements or assignations of vacant or neglected crofts.

Crofting is of huge cultural importance to our rural and island areas, and ensuring there are opportunities for young people and new entrants will help sustain crofting communities.

On this and many other issues, one of the highlights of my job is hearing from farmers and crofters across Scotland about what your businesses need, taking those visits on farm, and how we can work together. I really value the time you take to contribute to Government consultations.

For example, last week, we launched a consultation on phase six of our bovine viral diarrhoea eradication scheme. Eradicating BVD is important for improving on-farm economics, productivity, and welfare. We are looking forward to hearing industry’s views on our proposals on how we might move closer to eradicating the disease in Scotland.

More generally, over the past year it’s been great to meet people at shows, at marts, and as part of the research that we’re doing to inform the development of the future framework for support. It will help us design support that matches what you and your businesses need.

This engagement and interaction is so valuable to me and my colleagues. And of course, it’s always a great privilege to celebrate success and leadership.

So I’d like to finish by congratulating everyone whose hard work this year has been recognised by an award today.

I ultimately look forward to working together to design the future of our industry, to enable its success in the years to come, for the benefit of the next generation of farmers, and indeed for the future well-being of our nation.