Economic condition of crofting: 2019 to 2022

12. Common Agricultural Policy (CAP)

12.1. The Common Agricultural Policy (CAP) is a European programme of funding and support that Scottish farmers and crofters, as well as rural businesses and communities, have accessed through the Scottish Government. Funding has supported environmental, economic and community development across Scotland in a number of areas. This includes food and drink production, local community and tourism projects, forestry, and rural business developments.

12.2. Over the reporting period, funding was allocated in two ways (Pillars):

• Pillar 1 – direct payments that farmers, crofters and land owners may be entitled to, based on the size and type of their farm and the livestock they keep.
• Pillar 2 – Scottish Rural Development Programme (SRDP), which develops rural Scotland through a range of grants and support for rural communities, rural businesses, farmers, crofters and other land managers.

12.3. The last Scottish Parliament unanimously passed the Agriculture (Retained EU Law and Data) (Scotland) Act 2020 to enable the continuation of CAP schemes from 2021, while future agriculture policy is being co-developed. The Agriculture Reform Implementation Oversight Board (ARIOB) was subsequently established to contribute to the development of Scottish Government new proposals for sustainable farming support that delivers climate mitigation and adaptation, nature restoration and high quality food production, whilst at the same time remaining aligned to the key objectives of the EU CAP. The Scottish Government set out how it will support farming and food production in Scotland to become a global leader in sustainable and regenerative agriculture in the Vision for Agriculture, published in March 2022.