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Scotland Rural Development Programme (SRDP)
– the Future looks Green
 




Mark Mitchell
Director - Perth Office

2008 appears to be a year of dates, the Scotland Rural Development Programme (SRDP) a £1.6 billion programme of economic, environmental and social measures designed to develop rural Scotland over the next six years was approved by EU Ministers on 23 January 2008. The cut off date for Single Farm payment trading was set as the 2nd April, while the last day one could rent land remained the 30th April. 2008 also saw a relaxation of the single farm payment set aside rule allowing set aside entitlement to be claimed on cropped land, that land does of course have to be set aside eligible!

Returning to the SRDP, one year late and two name changes latter it is now a reality. The Scottish Government has stated that it will honour existing agri-environment and forestry scheme agreements and they will be funded from the SRDP Budget, which we calculate will account for approximately 50% of the £1.6 billion.

The good news, and this really is good news, is that the SRDP means landowners and occupiers can now have a replacement for previous grant schemes which are fast running out. The Countryside Premium Scheme and Rural Stewardship Scheme payments are already starting to dry up and the forestry sector is crying out for a replacement to the Scottish Forestry Grant scheme which closed two years ago.

It should also not be under estimated exactly how much the SRDP represents a sea change from previous schemes, being comparable to the radical change that Single Farm Payment (SFP) represented in 2005. SRDP is aimed not only at traditional agricultural and forestry sectors but at rural communities at large and includes measures to address economic and social goals as well as environmental measures.

The SRDP is a “one stop shop” of different types of grant scheme brought together by the Scottish Government. The principle schemes forming the core of the SRDP are as follows:

  • The Crofting Counties Agricultural Grant Scheme
  • The Food Processing
  • Marketing and Co-operation Grant Scheme
  • The Forestry Challenge Funds
  • The LEADER Initiative
  • The Less Favoured Area Support Scheme
  • The Rural Development Contracts and
  • The Skills Development Scheme
     
    A series of milestone dates has been set by the Scottish Government from January to October 2008, these dates set out the scheduled roll out of the various schemes. The Less Favoured Area Support Scheme and the Land Managers Options Schemes have both closed for 2008, while the Rural Priorities section of the Rural Development Contracts opened for business on 25th March 2008. For information see the SRDP latest newsletter link at

    www.scotland.gov.uk/srdp or visit www.bellingram.co.uk/srdp for an update.

    The Scottish Government delivers its subsidy schemes to the rural community through three Tiers which are as follows:

    Tier 1 Single Farm Payment Scheme, while not part of the SRDP, provides the environmental cross-compliance measures which set out the standards to which all schemes must comply.

    Tier 2 formerly known to many in its former incarnation as the ‘Land Management Contract Menu Scheme.’ Tier 2 payments are noncompetitive and open to all land managers with the payment available, based on the number of hectares registered on the annual IACS return. While the pot from which individual applicants can obtain funding is relatively small the LMCMS have proved very popular and are allocated on a non-competitive basis, therefore assuring payments are received

    Tier 3 provides higher and more targeted levels of benefit to be delivered regionally while feeding into the wider Scottish objectives. Tier 3 payments will not be capped and therefore potentially far more rewarding than those available under Tier 2, that said the pot is open to a considerably larger cross section of the rural community and will be competitively based.

    In order to provide the regional benefit set out by the SRDP the Scottish Government has split Scotland into 11 distinct regions or RPACS (Regional Proposal Assessment Committees) which have been established to develop regional priorities and assess the individual proposals, which is understood to be available from 25th March 2008. Further information is available on

    www.scotland.gov.uk/srdp
    www.bellingram.co.uk/srdp

  •  


    The RPACs are made up of public officials from SGRPID (Scottish Government Rural Payments & Inspections Directorate), SEPA (Scottish Environment Protection Agency), SNH (Scottish Natural Heritage), and FCS (Forestry Commission Scotland.) Additional members such as the National Parks will sit on the groups where they have an ongoing interest to assist in the delivery of particular regional priorities. The role of the RPACs is to recommend which proposals deliver and best meet the regional priorities. The groups’ members will receive expert input on an ad hoc basis where required for specific proposals.

    The applications procedure is intended to be simple, though a press contact of mine reported that a farmer friend of his felt that entering the Scottish Government SRDP website was similar to trying to drive into Glenrothes, somewhat frustrating and ultimately fruitless .The procedure is a two stage process, supported by Case Officers that can be made at any time of year and as regularly as wanted. The stages are:

    1. “Statement of Intent” (SoI). Providing an outline of (who, what, where, why and when) what is proposed to be made online, though backed up with a paper map. The SoI is assessed and the applicant provided with an amber or red light, the former indicating the application should proceed to the second stage. We understand that so 100 Sol’s have been made to date.
     
    2.“Full Proposal”. Comprising details of the business/holding setting out the proposals for delivering on one or more of the regional priorities which is submitted to the RPAC.

    While applications can be made at any point of the year it is understood that the RPACs will meet three times a year to assess, approve and consent to the applications. There is some speculation that the RPACs may meet more frequently initially to enable them to cope with the anticipated flood of initial applications. It should be born in mind that the CPS and RSS schemes are fast running out and new woodland grants have not existed for nearly two years so there are likely to be a considerable number of applications as soon as the schemes are announced, which is very likely to put pressure on the system and in turn slow the process down.

    The Scottish Government has striven to implement a simplified consent and approval procedure aiming to develop the “one stop shop” approach, thereby hopefully simplifying the process for the applicant and making it more efficient to administer for the RPACs. This suggested approach should be applauded but only time will tell if the respective government agencies can cope and work seamlessly together.

    The seriously good news for landowners and occupiers is the planned single visits to assess compliance. The idea of one inspector able to cover all relevant interests during a single/multipurpose visit is a dream for many.

    Unfortunately we still await confirmation of the payment rates, though a sceptic may suggest that they will be lower than those previously available. This may well turn out to be true but should be weighed against the fact that at present no upper limit has been set so a well considered proposal could lead to significant returns along with longer term wider benefits.

    So what to do next, Bell Ingram’s experience has shown that those who apply to agri-environmental schemes as early as possible are those most likely to reap the benefits of the funding available. It is fair to say that due to the breadth of the scheme, competition will be fierce and a strong application is therefore highly advisable.

    With this very much in mind and considering the complexity of the application procedure Bell Ingram have formed a team of specialist advisors including surveyors and forestry managers with a firm grounding in making applications into environmental schemes, in-house accounts staff able to provide robust cash flow projections, architects and building surveyors available to advise on the built environment and green energy specialists and tourism advisors who have a wealth of knowledge of rural issues and the urban fringe.

    I believe that with Bell Ingram’s unique geographical spread of offices across Scotland allows us to have experienced members of staff available within each of the 11 regions to assist all applicants such as crofters, farmers, forestry owners, large diverse estate owners and community groups. This unique position enables Bell Ingram to advise with confidence on the Regional Priorities within each and every region and therefore cover the relevant issues the RPACs seek. We have opened an office in Newton Stewart in part to deal with the increase in applications within Dumfries and Galloway region. Dumfries and Galloway has the largest acreage of forestry in Scotland at around 90,000 hectares and the highest numbers of cattle and we are expecting a flood of new enquiries as a result.

    Bell Ingram has set up a dedicated SRDP web page at www.bellingram.co.uk/srdp for anyone requiring further information.


    Bell Ingram’s unique geographical spread of offices across Scotland allows us to have experienced members of staff available within each of the 11 regions
     
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