SCOTLAND'S Less Favoured Area Support Scheme's days are numbered, and plans have just been revealed for the 2018 'parachute' payment that will quite likely be the last LFA money upland livestock producers will see.

EU rules do not permit LFASS to continue unchanged beyond this year, as the CAP reform agreement required member states to replace their LFA schemes with systems based on the new 'Areas Facing Natural Constraint' definitions.

But with the UK coming out of Europe, and Westminster yet to confirm any funding for a domestic successor scheme in 2019, the issue of upland support looks set to fall into the gap between the expected 2020 date of actual Brexit, and this year's enforced end of the mainstream LFASS.

The saving grace for Scotland is that the European rules allow countries not making the transition to ANC schemes to continue with their current schemes paying up to 80% of payments in 2018, an option that Rural Secretary Fergus Ewing has now confirmed that Scotland will take.

Speaking ahead of next week’s hill farming summit, Mr Ewing said: “LFASS is vital for our rural economy and remote communities, providing support to more than? 11,000 farmers and crofters. That is why we continued with the scheme, even when the UK Government stopped it. And it is why we are continuing with LFASS until 2018 to provide stability of funding and support for our farmers and crofters.

“However, EU rules do not allow us to continue with LFASS unchanged from next year. That is why, having looked at ?all options, and to provide as much financial stability as possible during these uncertain times, I intend to introduce parachute payments for 2018," he said.

"I am also actively consulting with stakeholders on how farmers and crofters in the Less Favourable Areas can access other support available under existing SRDP schemes, along with supporting priorities such as new entrants.

“Unfortunately I am unable to give farmers and crofters assurance on LFASS from 2019 as, despite repeated requests, the UK Government has still not guaranteed that the scheme will be funded in 2019. I have therefore once again written to the UK Government seeking assurance over LFASS 2019 and also the £190 million in external convergence uplift as a matter of urgency," added Mr Ewing.

NFU Scotland president, Andrew McCornick, said: “The vast majority of active LFA farmers and crofters struggle to understand why we need to change a scheme which is largely working and delivering for them. We have tried to convince Europe to keep our scheme, but these channels are now exhausted and change is required.

“We have worked with Scottish Government on the design of this parachute payment scheme for 2018," he explained. "We believe it avoids the very onerous and restrictive rules that a European-approved Areas of Natural Constraint scheme would have brought and avoids the risk of a big reduction in support for some farmers and crofters posed by a move to ANCs compared to existing LFASS payments.

“While the parachute option is not ideal, it is significantly better than the cliff edge of ANC payments that active upland beef and extensive hill sheep producers faced," said Mr McCornick. "At this turbulent time for farmers, that certainty of support in the future has a premium.

“Post-Brexit, we will have the chance to design a support scheme for Scottish hill farmers and crofters that will be fit for purpose but, for now, this parachute payment must act as a stepping stone. With 80% of existing support on offer, we are now in discussions with Scottish Government on a targeted menu of easily accessible small capital grant schemes and additional elements that will give LFA farmers and crofters an opportunity to access the remaining 20% of funding. Securing the budget and delivering it in a way that is available to all is our next priority.”

Scottish Beef Association chairman Neil McCorkindale commented: “The SBA fully supports the parachute payment proposal for LFASS which is the best option available in the short term.

"We also acknowledge the continuous engaging of Scottish Government with the industry stakeholding groups in reaching difficult decisions in such an uncertain time. It is encouraging to know that the Cabinet Secretary recognises the importance of those support payments to livestock producers at this time of year, and we welcome the clarity this provides."

Degressivity will also have to be introduced, where above a set an area threshold payments will reduce. The changes to LFASS will require to be submitted to, and approved by, the European Commission before they are finalised.

More information about SRDP 2014-2020 can be found on the Scottish Government website: http://www.gov.scot/Topics/farmingrural/SRDP