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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
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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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