John Swinney fails to address oversubscribed FFIS in speech

Speaking at the QMS Breakfast on the opening morning of the Royal Highland Show, First Minister John Swinney focused on partnership with agriculture, support for livestock production and the sector’s role in Scotland’s economic future.

However, despite widespread expectation that details of a second round of the FFIS would be unveiled, mirroring last year’s announcement at the same event, ministers stopped short of providing any timetable or application criteria.

The omission was notable given the strong demand for the first FFIS scheme, which was heavily oversubscribed.

While Swinney reiterated that the Government would continue the FFIS as part of its five-year Rural Support Plan, no further detail was provided from the platform.

Questioned afterwards, agriculture minister Jim Fairlie confirmed that work on the next scheme is ongoing but said ministers were not yet ready to announce details.

“We know what the budget is – it’s £14.25 million. That’s already been agreed and we’re happy with that,” he said.

Fairlie acknowledged criticism of the first scheme but defended its impact.

“We took a lot of criticism because we made this as simple as we possibly could the last time and tried to bring as many people in as possible. It was oversubscribed, and that’s fine – we take that on the chin.”

He added: “Folk should remember we put £21.5 million directly into capital investment in agriculture, and that was a good thing. We’re going to put another £14.25 million into agriculture, and that’s a good thing.”

However, he indicated key decisions remain unresolved.

“We’ve definitely learned from what came before. We’re working through what the criteria are going to be, whether there are going to be caps and where it’s going to land.”

Asked when producers could expect an announcement, Fairlie replied: “Once we’ve finalised it and we’ve got the details, we’ll announce that at that time – but not just now.”

Pressed further on timescales, he said: “Within two or three months, three or four months – it’s still in process. I never like to put times on it because then you hold me to it.”

Food price caps defended

The other major talking point of the morning was the Scottish Government’s proposed food price cap policy, which continues to generate concern across the farming and food supply chain.

In his speech, Swinney sought to reassure producers that affordability measures would not come at farmers’ expense.

“It cannot come at the expense of farmers, growers and producers who produce these items for us all,” he said.

Fairlie was even more direct when challenged on how primary producers would be protected.

“My job will be to make sure this does not land on the doorstep of the primary producer. I will be absolutely vigorous in my defence to make sure that doesn’t happen.”

The minister argued that Government intervention is necessary because of continuing cost-of-living pressures.

“The cap is an essential part of where we currently are. It might not feel like it in this room, but my inbox and Gillian’s inbox are full of people who are genuinely struggling.”

“I’m telling you now – it’s real. People are genuinely struggling, and the Government is going to do everything we can to help them.”

Fairlie suggested retailers must shoulder more responsibility for addressing affordability.

“We’ve got a broken system right now. We’ve got farmers who aren’t making enough money when they’re producing it and we’ve got people who can’t afford to buy it. So where’s the money going?”

“If supermarkets control 90% of the grocery market in this country, then surely there’s a way we can work with them so we protect the sector and people can still afford to buy the essentials.”

He also warned retailers that Government intervention remained an option.

“You’ve got to have a bit of courage. This is a real problem, and they have to be part of the solution. Come with us and work with us, or there is an alternative – we can legislate.”

Both Fairlie and cabinet secretary for climate action and rural affairs Gillian Martin stressed that current discussions involve only a limited number of products rather than broad category-wide controls.

“At the moment we’re looking at a very conservative amount of products in the basket – it’s actually very small compared to what other countries are doing,” Martin said, citing modelling in France.

Government signals pig sector intervention

While there was no FFIS announcement, ministers did indicate that support for Scotland’s struggling pig sector is under active consideration.

Martin confirmed discussions are taking place with producers and industry organisations amid ongoing market pressures.

“We’re looking at potential support for the pig sector. Back in Covid there was a similar crisis, and we were able to step in and get them over that situation.”

“I’ve been meeting with members from the pig sector itself and NFU Scotland, and we are looking at what we can do to sustain them over a period of time until this settles down.”

She said many of the difficulties facing producers stem from international market disruption.

“We’ve been subjected to a situation which is outwith anyone’s control, to do with what’s happened in Spain, and they’re not getting the right price for their produce.”

Martin described hearing ‘heart-breaking stories’ from producers struggling to remain viable.

The strongest signal came when she suggested intervention is now a question of how rather than if.

“Pig farmers need to see future security, and Government will be stepping in to assist them. You have my assurance we are going to be doing something.”

Procurement opportunity

Both ministers also highlighted plans for a new public sector procurement taskforce aimed at increasing the amount of Scottish food purchased by public bodies.

Martin said the initiative could become a significant opportunity for domestic producers.

“We need to make sure we have local produce in our hospitals, in our schools, in our prisons – all public sector buying power coming together.

“Protein from Scottish farmers is going to be at the heart of that.”

Fairlie confirmed he will chair the taskforce, with its first meeting expected this summer.

“We’ve got an opportunity now to make a significant change to how public procurement works in Scotland for the benefit of Scottish producers.”

For many attending the breakfast, however, the biggest takeaway was not what ministers announced, but what they did not.

Twelve months after FFIS was launched from the same stage, farmers will leave Ingliston still waiting for details of what comes next.