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Slipper farmers warned over tough new CAP rules.

Would-be slipper farmers have no place in the new Common Agricultural Policy (CAP), Rural Affairs Secretary Richard Lochhead has warned.

Ahead of a meeting with industry representatives to discuss the impact of the new CAP on seasonal lets, Mr Lochhead has stated land owners would be ‘mistaken’ to think they will qualify for CAP payments without meeting strict minimum activity requirements.

It follows the publication of new official statistics on tenanted agricultural land in Scotland, and a review of seasonally let-in grazing land.

The Cabinet Secretary said yesterday:

“These analyses highlight the important role that seasonal lets play in Scottish farming, particularly to the livestock sector - with seasonal lets accounting for 13 per cent of all agricultural land in Scotland, and about a third of livestock businesses renting in land on a seasonal basis for grazing. These reports also show a clear link between rent levels and profitability.

“I am aware that there are some concerns about how the new Common Agricultural Policy (CAP) might affect the availability of seasonal lets and the associated impact on rent levels, and I am meeting industry representatives later today to discuss these concerns in more detail.

“It is a European requirement that CAP support is now based on land area, rather than on historic payments – and to mitigate as far as possible any negative impact on Scottish farming, we have brought in the staged transition to area-based payments that was requested by industry.

“We have also introduced strengthened minimum activity rules to stamp out slipper farming and ensure payments are only made where genuine farming activity takes place.

“My understanding is that land is still available to rent, but in some cases the CAP payments are now being claimed by the landowner rather than the tenant. I can certainly understand why so many tenant farmers are concerned by this situation, which has been brought about by EU rules, and I look forward to exploring this issue in more detail when I meet industry.

“Would-be slipper farmers have no place in the new CAP. If anyone thinks that land owners with no track record of farming can take land back in hand and get payments then they are mistaken. And they are severely mistaken if they think payments will be made on entitlements where there is no farming activity.

“Everyone claiming basic payments will need to provide verifiable evidence of appropriate farming activity that will be carefully scrutinised by my officials. And claimants will be held accountable for ensuring all cross-compliance, minimum activity and other relevant regulatory obligations are met.

“Given the important role seasonal lets plays in Scottish agriculture it is clearly crucial for landowners and tenants to have a positive working relationship, and to be able to reach agreement on such contractual issues.”

Notes To Editors

The latest figures on Tenanted Agricultural Land in Scotland are available from www.gov.scot/stats/bulletins/01155

The report on seasonally let-in grazing land was produced by Scotland’s Rural College to support the review of agricultural holdings legislation. It extends analysis of seasonally let land conducted as part of the Scottish Agricultural Tenure Evidence Review by examining seasonally let land trends from 2005 to 2013 and assessing the characteristics of farms renting is seasonal grazing lets in 2013. It is available from: http://www.sruc.ac.uk/downloads/file/2394/2015_scottish_agricultural_tenure_evidence_review_-_seasonally_let-in_grazing_land

The Agricultural Tenure Evidence Review can be accessed via: http://www.gov.scot/Publications/2014/06/9792

Further information on tenant farming can be found at: http://www.gov.scot/Topics/farmingrural/Agriculture/agricultural-holdings