Increased coupled payments could be on the cards again, according to the Scottish farm minister, Richard Lochhead.
In a surprise turn of events, the Scottish Government last night confirmed the European Commission has agreed to work with Scotland to find a resolution to the coupled support issue.
Last week Scots farming leaders were left up in arms after the EU agriculture commissioner, Dacian Ciolos, said Scotland would not be able to increase its coupling rate from 8% to 13%.
The news, which emerged from Lib Dem MEP George Lyon, came as a shock to the Scottish Government which had previously said on several occasions that its proposals had been given the green light.
EU rules allow a member state – the UK in this case – to use 8% of overall budget for coupled support.
Mr Lochhead had argued that Scotland be allowed to increase the rate of its direct support budget used for coupling on the basis that it is the only part of the UK using coupled support, and in doing so the UK would still be within the 8% threshold.
Commissioner Ciolos last week shot down the plans and said EU rules would not allow this to happen because by opting to implement a separate Common Agricultural Policy regime in Scotland, the country would have to adhere to Cap rules as if it were a member state in its own right.
Last night Mr Lochhead said he had spoken to Commissioner Ciolos on the phone and been given assurances that EU officials would continue to look for a solution to solve the issue.
Scottish and European officials will hold discussions next week, and Mr Lochhead will have a face-to-face meeting with Mr Ciolos thereafter.
“I have received assurances from the commissioner that there will be further meetings to see whether anything can be salvaged from this unacceptable situation that we find ourselves in,” Mr Lochhead said last night.
“In the meantime, we need the UK Government to step in and help Scotland to get this situation sorted. Given Defra’s pledge to allow us flexibility on coupled support as an apparent concession for not giving Scotland its £190million convergence budget uplift, I fully expect them to give us their complete backing in finding a solution to this.”
He said he was yet to receive a response to letters written to Defra Secretary of State Owen Paterson and Scottish Secretary Alistair Carmichael asking for their support in gaining increased coupling and for them to revisit the decision on convergence uplift.
“It’s quite clear that Scottish farmers need clarity on the shape of the new Cap sooner rather than later and this delay is not helping. One way or another we will be sticking to our timetable for decision-making on Cap implementation so time is running out,” added Mr Lochhead.
Meanwhile, the Scottish Government has confirmed beef producers will start to receive vital coupled support payments worth around £22million from next week onwards.
Scottish Beef Scheme support payments will start to arrive in farmers’ bank accounts from Thursday next week, with 95% expected to be paid by the following Wednesday.
Nearly 7,500 producers claimed for just under 406,000 animals in 2013.
Under the scheme, producers will be paid £139.20 for the first ten eligible animals and £46.40 per animal thereafter.
This is slightly up on 2012 payment rates, as a result of a more favourable exchange rate in 2013, of £134.31 and £44.77.