Dear Sir,

In the SF, Nov 12, there were several references made to the likely changes to the system of income support which will mean that farmers should prepare to become less dependent on subsidies.

I welcome these comments, but I do not agree with those who claim that farmers in Scotland will be unable to generate sufficient profits to farm without subsidies.

We on this farm are not alone in farming without being dependent on subsidy income and many more could do so if a radical reform of the tax system is undertaken. I defy anyone to construct a way of raising the money needed to pay for the necessary functions of government that is worse than the one in use now.

Income Taxes and VAT have large disincentive effects on employment and trade, these taxes are expensive to collect and are easily avoided and evaded. They are also not closely related to the ability to pay; for instance, the Income Taxes that farmers are obliged to pay on behalf of their staff have to be paid irrespective of whether their farm businesses are profitable enough to afford to pay.

Income Taxes and VAT should be reduced and then abolished. They should be gradually replaced by the collection of Annual Ground Rent, based on the rental value of all eligible land, urban and rural. I have calculated that our farm will be more profitable following such a change and the Annual Ground Rent will be closely related to the productive capacity of the land and to our ability to pay.

Continuing with the existing antiquated, disincentive and complicated tax and subsidy systems will produce many more years of dissatisfaction and ineffective complaining for farmers. The time has come for radical change, led by farmers.

Adopting these proposals will allow us to adapt to Brexit with optimism. It was farmers in New Zealand who urged their government to get rid of subsidies and none of them want to return to the old ways. Their outlook on farming is, in general, much more positive than ours,

yours,

Duncan Pickard,

Straiton Farm,

Balmullo