Subsidy cuts likely to hit hard

Category: Agriculture - Posted On: Feb 7 2019


Jeremy Moody, Secretary and Adviser to the Central Association of Agricultural Valuers and adviser to SAAVA

Changes to the farm subsidy regime in Scotland after Brexit could see significant money moved away from better cropping and grazing to protect Less Favoured Areas (LFA) payments from a large reduction.

That is the warning from leading agricultural policy adviser Jeremy Moody, who will address a major farming industry conference in Carnoustie on 14 February.

Mr Moody is Secretary and Adviser to the Central Association of Agricultural Valuers and adviser to SAAVA. Having been closely involved in several rounds of CAP reform over the years and more recently in the Brexit process, he believes that the Scottish Government may have little option but to take money from BPS recipients on better quality agricultural land in Payment Region 1 to plug the funding gap for those on LFA land in Payment Regions 2 and 3.

“Less Favoured Areas Support Scheme (LFASS) payments are facing a 60% cut for 2020 under EU rules. The Scottish Government wants to protect LFASS but will have to make decisions about how it funds and cuts the subsidy cake. Without new money being made available, the conclusion that money would have to be shifted towards LFA from the Payment Region 1 BPS pot is a logical one to draw.”

Mr Moody’s talk at the Farming Scotland Conference will also cover his analysis of Scottish land tenure issues, a hot topic in the farming sector which is of keen interest to land owners and occupiers alike.

Graeme Davidson, Partner, Head of EQ Agriculture and Chair of the Conference said:

“We are delighted to be welcoming Jeremy back to address our conference, as he was a very popular speaker at our conference five years ago. His insight and analysis of the key policy issues of the day will be eagerly anticipated by conference delegates.”

The Farming Scotland Conference takes place at Carnoustie Hotel on Thursday 14 February 2019. To book your place, contact Mary Campbell on 01307 474274, email mary.campbell@eqaccountants.co.uk or go to www.farmingscotlandconference.co.uk.