NEXT YEAR'S 2018 LFASS scheme will now pay hill farmers and crofters 100% of their funding, with the Scottish Government no longer required to wind the 2018 scheme down via an 80% 'parachute' payment thanks to new 'flexibilities' from the EU.

This move by ScotGov will be welcomed by the 11,000 hill farmers and crofters who farm on Scotland’s toughest and most fragile ground. Rural Economy Secretary Fergus Ewing, who previously announced the 80% parachute payment plan on March 25, explained the thoughts behind the rethink.

“LFASS is vital for our rural economy and remote communities, so I am delighted to confirm that hill farmers and crofters can expect to receive 100% of their entitlement for 2018 LFASS – rather than the previously announced 80%.

“Unlike England, who discontinued their equivalent scheme some years ago, Scotland continues to operate this key measure to compensate for the extra costs incurred by farmers in our most remote and challenging areas.

“I continue to press the UK Government for a clear statement about what is guaranteed post-Brexit to support our rural economy. While committing to the ‘same cash total in funds for farm support during this Parliament’, they have given no detail of what this actually means," noted Mr Ewing.

“With 85% of Scotland’s agricultural area classed as less favoured, future support for farmers and crofters is crucial to ensure the economic viability and sustainability of these remote areas.”

As they originally stood, CAP reform regulations required LFASS to change in 2018, the options being either a move to an Areas of Natural Constraint scheme or to maintain the LFASS scheme with a reduced payment. This new announcement that 2018's payments will match those of the 2017 scheme will defer any LFASS reductions until 2019's funding is revealed.

NFU Scotland praised ScotGov’s move to protect these vital payments – although it noted that it comes after months of the union pressing the government to act on the matter. Nonetheless, the change, said the union, bodes well for the wider agricultural sector given the pressure facing the government on a multitude of public spending areas.

Despite the temporary nature of this latest solution, the union pledged to continue working towards maintaining the £65 million funding level beyond 2018. Vice president Martin Kennedy said: “NFUS welcomes today’s announcement that the 2018 LFASS budget has been re-instated and that the Scottish Government has used the option to defer the use of parachute payments.

“Given the financial pressures facing many cattle and sheep producers in the LFA this decision will be warmly welcomed. We will continue to work with the Scottish Government on the arrangements for LFASS 2019 and beyond.”