Coupled support for hill flocks - why and how?

But there are clear advantages to using some of the flexibilities and options available.

The compelling case for support for upland and hill farming, which is constrained by poorer quality grazing land, means both new Pillar 1 direct support payments and the continuation of Less Favoured Areas (LFA) support through Pillar 2 must be the focus of support to Scottish agriculture for the foreseeable future.

Direct payments provide vital support for active farming and crofting across Scotland's vast areas of rough grazing. And the LFA Support Scheme (LFASS) remains critical to livestock producers on more disadvantaged land.

In addition to area-based payments, voluntary coupled support (VCS) under Pillar 1 will be particularly important for active farms and crofts.

Targeted coupled payments help make the most of a poor CAP budget and improve the effectiveness of area-based payments. Coupled support is important to all, not just those that are eligible and can directly benefit from it.

The Scottish sheep industry faces unique challenges. Our sheep sector is dominated by rough grazing, and on most Region 3 land the only option is the rearing of sheep.

But as the quality of rough grazing varies, so does its carrying capacity and its productivity. Under the new Basic Payments Scheme (BPS), support will move from relatively more productive livestock enterprises to those with larger areas of rough grazing, which may well be as active, but can never be as productive.

Given the low profitability of many extensive sheep businesses, any further erosion of support may well encourage further decline. So it is vital those who are active on the poorest grazing also get access to coupled support.

A continued decline in hill flocks would impact on our stratified sheep sector. Further losses of shepherding jobs would impact on more remote rural communities and accelerate the decline of fragile rural economies.

Grazing by sheep is particularly important to geographic regions dominated by Payment Region 3 land for economic reasons. But we cannot afford to bleed limited Pillar 1 funds to empty hillsides, nor can we justify allowing that to happen.

So, coupled payments are then needed to support those who remain active on Scotland's poorest grazing.

Shifting some support directly to sheep, rather than it all being attached to land so long as a bare minimum of activity is met, will help avoid job losses in remote rural communities which, in turn, will help avoid the risk of land abandonment and will allow the high environmental value of the land in such regions to be maintained.

The Scottish Government agreed that coupled payments should be used to target support to hill flocks reliant on Payment Region 3 land. That meant developing a scheme focused on businesses 'reliant' on the poorest land.

Scotland will have a Scottish Upland Sheep Support Scheme (SUSS Scheme) to maintain sheep flocks on farm businesses that are reliant on the poorer quality rough grazing found in Scotland's Basic Payment Region 3.

A clear intent is to sustain the environmental and social benefits that arise from keeping and grazing extensive sheep flocks in the Scottish hills and uplands.

The new SUSS Scheme will use about 1.5% of Scotland's Pillar 1 [direct support] budget, which equates to about €8m per year. Payments rates should be in the order of about €100 per ewe hogg - equating to about €25 per breeding ewe.

The SUSS Scheme has to focus on Payment Region 3, ie rough grazing in LFASS grazing category A, and the farm businesses that are reliant on this type of land. That is the policy decision from Scottish Government.

Businesses that rely on poor quality rough grazing are defined as those which have 80% or more of their agricultural land in Scotland's Basic Payment Region 3 and less than 200 ha of Payment Region 1 (arable land, temporary grass, and permanent grass).

The challenge has been to find the best way to implement targeted sheep coupled payments within the European rules, while also minimising the burden and risks of inspections and compliance - for both claimant (farmer or crofter) and administrator (SGRPID).

While it is essential that we target support at hill flocks through coupled payments, there can be no doubt that this new SUSS Scheme will prove challenging for all.

European rules are likely to make compliance onerous, and the practicalities of managing ewe hoggs - gathering, tagging, away wintering and so on - may well add to the risk of errors.

Nevertheless, this new scheme offers the first opportunity in more than a decade to directly support those running regular breeding flocks on our most disadvantaged land. Those sticking to the task deserve this support.

Extensive grazing by sheep may be the only agricultural option, but its value extends beyond farming, crofting or land use - and that needs to be recognised.

As things stand, the SUSS Scheme will run as follows:

Eligible businesses are those with 80% or more Region 3 land and less than 200 ha of Region 1 land;

Eligible animals have to be home-bred ewe hoggs of any breed;

Claiming businesses must maintain a flock register and keep it up to date. In addition, claiming businesses must comply with the Sheep and Goats (Records, Identification and Movement) (Scotland) Order 2009;

Claims will be limited to 4 ha of Region 3 land per ewe hogg claimed

To apply, the business must first submit a Single Application Form (SAF) for the same year;

The application period runs from September 1 to October 16 each year;

Application forms sent are to be submitted via the local SGRPID area office, including details of each animal's identification number;

Eligible animals must be retained on the holding from October 1 in the year of claim to March 31 in the following year;

Dead, lost or sold claimed animals must be withdrawn within 10 days of becoming aware;

An entire claim or individual animals can be withdrawn at any time, but not if SGRPID have notified an inspection, or have notified of any errors in a claim;

Payments are due in April, after the end of the retention period.