Total income from farming: estimates for Scotland 2014-2016

5. Total grants and subsidies

Total payments (including coupled support) fell by £31 million to £480 million in 2015, but due to the more favourable exchange-rate increased £53 million to £533 million in 2016.

The CAP regime saw a major change in 2015, with Single Farm Payments (SFP) being replaced by the Basic Payment Scheme (BPS) and the Greening Payments. Initially set in euros, BPS, Greening and the new Young Farmer Payment amounting to £336 million in 2015 (76 per cent of payments or seven per cent of total gross income; down £44 million relative to SFP, 12 per cent or 13 per cent real terms) and amounting to £400 million in 2016 (81 per cent of payments or 12 per cent of total gross income; up £64 million, 19 per cent or 18 per cent real terms). The reduction in 2015 was due to both a less favourable exchange rate (€1=£0.73129) and a €29 million reduction in the original amount due to changes in the EU budget, down to €459 million. The 2016 figures saw a €10 million increase in the initial euro amount, to €469 million, but a 17 per cent weakening of the Sterling exchange rate (€1=£0.85228) resulted in a 19 per cent increase in pillar 1 payments.

Chart 6: Grants and Subsidies 2006-2016 source: Table 3
(excludes coupled support)

Other payments include the Less-favoured Areas Support Scheme, which accounted for £66 million in 2015, with the same amount estimated for 2016, and Rural Priorities payments which accounted for £28 million in 2015 and £14 million in 2016. The remaining schemes totalled about £11 million in 2016, and included £5 million EU reimbursement and the £2.4 million EU Milk Production Reduction Scheme.

Coupled support increased from £35.8 million in 2015 to £41.7 million in 2016. The figures are included in the livestock income in this publication's tables.