Economic condition of crofting: 2019 to 2022

13. Pillar 1: Direct Payments

13.1. Basic Payment Scheme (BPS) and Greening

13.1.1. The Basic Payment Scheme (BPS) supplements main business income. To qualify for this support, claimants must actively farm their land. Support under the BPS is available to those who are allocated payment entitlements. Farmers and crofters can apply for entitlements based on the land they farm and the activity they undertake.

13.1.2. The scheme also delivers environmental and other benefits by requiring claimants to meet certain practices and farm in a sustainable way. Together, these are called Agricultural Practices Beneficial for the Climate and the Environment but is more commonly called "Greening". Greening is paid on top of the BPS.

13.1.3. When considering the implementation of the Greening requirements in Scotland, a balance was reached regarding the transfer of funds from Pillar 1 to Pillar 2, and the activities to be undertaken to meet the Greening requirements.

13.1.4. Since 2015, Greening requirements have included:

• Permanent grassland;
• Crop diversification; and
• Ecological Focus Areas.

13.1.5. Under reform of the CAP, it is mandatory for applicants to the BPS to comply with Greening requirements on their land, where relevant. In return for this, an additional Greening payment will be made.

13.2 Young Farmer Payment

13.2.1. If a business qualifies for the Basic Payment, the beneficiary may also receive the Young Farmer Payment (YFP). They will receive this if they:

• Submit a Single Application Form;
• Farm a minimum of three hectares in Scotland;
• Are a sole trader or head of the farm business; and
• Are under 41 years of age on 31 December of the first year they apply for the Basic Payment Scheme.

13.2.2. The level of YFP is based on a maximum of 90 eligible hectares and the rate is 25% of the average value of payment entitlements held for the scheme year concerned. For businesses where the young farmer is classed as head of the farm business, this means that person is the main shareholder/partner in the business; takes the majority share of any profits; and makes the key business decisions. The YFP is made to eligible applicants for a maximum of five years from the date of their first application submission.

13.3 Scottish Upland Sheep Support Scheme (SUSSS)

13.3.1. This scheme was introduced in 2015 and gives direct support to help maintain sheep flocks in farm businesses who are reliant on poorer quality rough grazing found in Scotland's Basic Payment Region Three.

13.3.2. It has an annual budget of approximately £7 million. Businesses that rely on poor quality rough grazing are defined as those which have: a) 80 per cent or more of their agricultural land in Scotland's Basic Payment Region Three; and b) no more than 200 hectares of good quality agricultural land in Scotland's Basic Payment Region One. The scheme aims to maintain the environmental and social benefits that arise from extensive sheep grazing on the Scottish hills and uplands.

13.4 Scottish Suckler Beef Support Scheme (SSBSSM (Mainland) and SSBSSI (Islands))

13.4.1 This scheme was introduced in 2015 and gives direct support to specialist beef producers. It has an annual budget of approximately £34 million for Scottish mainland claims, and approximately £6 million for claims from the Scottish islands.

13.4.2 The scheme aims to maintain sufficient critical mass in the Scottish beef industry, and the environmental and social benefits that arise from extensive beef suckler herds on the Scottish mainland and islands.