Scottish Rural Development Programme 2014-2020: ex-post evaluation - main report

3. Summary overview

Introduction

The original total budget for the SRDP 2014-2020 was circa €1.695 billion and was made up from various sources, including the EU’s European Agricultural Fund for Rural Development (EAFRD), Scottish funds, and transfer of funds from Direct Payments.

The final total budget for the SRDP 2014-2020 was €1.520 billion. The funding was targeted at key priorities facing Scotland with a view to making a real difference to businesses and communities across rural Scotland and to achieve the biggest impact.

The SG has made substantial investments through the SRDP 2014-2020, demonstrating its commitment to supporting the rural economy and the environment.

Support for the agricultural sector remained a prominent feature of the SRDP 2014-2020. This included various interventions to support fragile farming businesses in remote and constrained rural areas, as well as improved support for crofters, small farmers, and new entrants to the agricultural sector. Not least as the crofting sector is unique to Scotland and is a vital component of our cultural heritage, and the wider Scottish agricultural sector is characterised by an ageing workforce and a lack of opportunities for new young farmers to enter the sector.

The European Regulations set a minimum spend figure for the environment and climate change of 30% of the total budget. The SRDP 2014-2020 has supported a wide range of interventions to help ensure the environment is protected and enhanced, and that action is taken to mitigate and adapt to the impact of climate change. This included interventions such as agri-environment and climate projects, forestry, organics, and Natura measures.

Key sector support was also targeted through the SRDP 2014-2020 at food and drink and small and medium sized rural businesses – in recognition of the contribution that these businesses make towards the viability, growth, and sustainability of rural areas as well as to overall quality of life with rural communities.

The LEADER programme provided opportunities for local communities to come together alongside the public, private and third sectors to address issues they identified as priorities for their area.

Expenditure

The AIR 2023 reports that during the life of the 2014-2020 Programme there has been a total realised expenditure of €1.483 billion comprising:

• €1.461 billion of public expenditure (EAFRD and national funding) (98.5%).
• €21.7 million of Additional National Financing (ANF) (1.5%).

Of the total €1.483 billion realised expenditure:

• €1.0766 billion was expenditure related to the SRDP 2014-2020 – this represents 73% of the total realised expenditure.
• €406.4 million was commitments originally made under the 2007-2013 Programme – this represents 27% of the total realised expenditure.

During the first two years of the 2014-2020 Programme period over 95% of the realised expenditure was on commitments made under the 2007-2013 Programme. This is standard practice to manage the transition from one CAP programme to another. As the SRDP 2014-2020 progressed the proportion of the realised expenditure on commitments made under the 2007-2013 Programme decreased.

Table 3.1 summarises total public expenditure by Measure and compares committed expenditure to realised expenditure. Table 3.2 offers a similar analysis with expenditure aggregated based on FA.

Points to note include that:

• Measures M13 and M08 accounted for the largest shares of all realised expenditure across the Programme, and together represent more than half of all realised expenditure.
• overall, realised expenditure fell just 2.1% short of committed expenditure, although there is variation between Measures. For example, realised expenditure under M20 was 25.1% above committed expenditure, while realised expenditure under M16 was 30.7 below committed expenditure.
• realised expenditure within FA 4A, B, and C and 2A accounted for the largest shares at 36.9% and 20.7%, respectively. Together this represents over two-thirds of all realised expenditure.
• there was also variation between FAs in terms of over or under expenditure. Realised expenditure on FA 6A was above that of committed expenditure by 65.6%, while realised expenditure on FA3A fell 23% short of committed expenditure.

Table 3.3 then provides realised expenditure by scheme.

Source: Scottish Government, Annual Implementation Report, 2023.

Source: Scottish Government, Annual Implementation Report, 2023.

Source: Scottish Government, Annual Implementation Report, 2023.

Outcomes

Table 3.4 and Table 3.5 provide details of outcomes achieved by the Programme.

Source: Scottish Government, Annual Implementation Report, 2023.

Source: Scottish Government, Annual Implementation Report 2023.

What was delivered

The infographics below draw out some key facts and figures by scheme.

Infographic text:

There was a realised expenditure of €1.483 billion to support the rural economy through 15 schemes

Less Favoured Area Support Scheme

• An average of 7,829 farmers and crofters were supported on an annual basis who farm on land which is classified as either Disadvantaged or Severely Disadvantaged.

Agri-Environment Climate Scheme

• A total of 1,855,247 hectares of agricultural land were under management contracts to support biodiversity. Similar figures for supporting water management and improving soil management and/or preventing soil erosion were 1,542,356 ad 1,700,649 hectares respectively.

Food Processing, Marketing and Cooperation Scheme

• Over 160 grant award were made which created and safeguarded 8,995 jobs in food and drink processing businesses.

Forestry Grant Scheme

• Provided financial support and incentives for the creation of new woodland and the management of existing woodlands.
• A total of 196,784 hectares of forestry land was under management contracts during the 2014-2020 Programme period via the Forestry Grant Scheme.

LEADER

• LEADER supported 1,168 community, enterprise and farm diversification and community projects, and supported the creation of 523 jobs.

Crofting Agricultural Grants Scheme

• Almost 3,800 crofters received a grant award(s) to allow them to improve their crofts and encourage business sustainability.

Farm Advisory Service

• Over 1,300 advisors were trained and over 48,000 farmers and crofters benefited from advice from the scheme across a wide range of topics.

New Entrants Capital Grant Scheme

• The scheme supported 850 people new to farming with capital grant support to make improvements to their agricultural business

Knowledge Transfer and Innovation Fund

• The fund supported almost 20,000 participants to take part in vocational training and skills development activity and supported 27 European Innovation Partnership Operational Groups.

New Entrants Start-Up Grant Scheme

• Circa 50 new entrants who started their agricultural business in the 12 months prior to applying for funding were provided with capital grant support to help with the start-up costs of their agricultural business.

Beef Efficiency Scheme

• Five actions/operations were supported via the Beef Efficiency Scheme and the scheme provided advice to over 4,400 farmers.

Young Farmers Start-Up Grant Scheme

• 205 young farmers (aged 16 to 41 years) were supported with capital funding which aimed to support those who were starting an agricultural business for the first time or who were taking over an existing agricultural business.

Improving Public Access Scheme

• Circa 158 kilometres of pathwork delivered, with significant clusters in Aberdeenshire, Dumfries and Galloway, Highland, and East Lothian. Over 260,000 people have benefited from the contracts delivered.

Small Farms Grant Scheme

• 59 small farmers were supported with capital grant funding to make improvements to their holdings and to improve business sustainability.