NOVEMBER 2020 – That Was The Year That Was

There was more seemingly grim news, as it emerged that many farmers may have had deductions from their BPS entitlement that they are not even aware of yet. Highlighting what has been a long-running, but low profile, issue with Scottish farm support payments, land agency Galbraith claimed that up to 50% of all farmers and crofters could be missing out on part of their entitlement because they have not been informed by the Scottish government since 2015 that a deduction has been made. The firm’s Stewart Johnston said: “Most people will check their payment when it comes in and if it looks to be broadly what they were expecting they assume all is correct. But we know of several clients who have had deductions made for a variety of reasons and were never informed of this. Only when they contacted the rural payments department subsequently did it become clear that a deduction had been applied.”

There was good news too, though, as a South of Scotland community buyout looked set to go ahead following one of the most ambitious community fundraising campaigns ever seen. The landmark community buyout has seen Langholm in Dumfries and Galloway raising the final funds needed in the nick of time, securing over 5000 acres of land for £3.8 million. The agreement between The Langholm Initiative charity and Buccleuch paves the way for the creation of a huge new nature reserve. Discussions will continue over the remaining 5300 acres of land the community has expressed an interest in buying. Executive chairman of Buccleuch, Benny Higgins, said: “We’re absolutely delighted to have reached a significant agreement with The Langholm Initiative, and this deal demonstrates what can be achieved when everyone involved is committed to working together. The community has done a tremendous job in raising the funds to make this historic acquisition, and the plan to create a nature reserve has attracted widespread support. We wish the project every success. We have a long-standing policy of reducing our overall footprint to enable us to invest in other projects, and will continue this policy of selling land to interested farmers, community bodies and organisations which express an interest.”

Brexit began to rear its ugly head again, as ongoing uncertainty over the UK’s future relationship with the EU, which could be potentially ‘crippling’ agribusinesses facing the perilous situation of an impending no deal Brexit. This message from NFU Scotland came as the UK Government engaged in the latest round of Brexit negotiations with the EU and the clock was ticking towards securing a deal before December 31. NFUS stressed the importance of the next 50 days, which it said were critical to the future fortunes of many Scottish food and farming businesses, and the jobs they support. The union holds by its sentiment from four years ago that agriculture can flourish outside the EU if certain key requirements are met. Top of that list is the avoidance of a ‘catastrophic’ no deal outcome and any short-term political and economic turmoil.

With the sustainability of soya a growing concern for consumers and retailers, SAC Consulting was exploring the use of alternative proteins in dairy feed rations. Marks and Spencer announced that it was banning milk from soya-fed cattle as part of its commitment to end deforestation in its supply chain, and SAC Consulting believed that other retailers may follow suit. SRUC has removed soya from three of its dairy herds – the Langhill research herd at Crichton Royal Farm; Acrehead; and the Barony Campus dairy herd – and started analysing the impact of protein alternatives on their productivity. Dairy consultant with SAC Consulting, Lorna MacPherson, said: “Farmers shouldn’t be afraid of not using soya in their rations. There is now plenty of evidence and trials being conducted showing that protected rapemeal is a viable alternative to soya and can be used with no detriment to milk yield or quality.”

Scotland’s food and drink industry leaders wrote to the Prime Minister calling for immediate action to avoid ‘enormous damage’ to the industry post-Brexit. With less than 60 days to go until the Brexit transition periods ends, the sector’s key demand was for a six-month grace period to allow it to adjust to new trading rules without fear of significant border disruption, enforcement action and loss of further revenue. A total of 11 industry bodies signed the open letter to Boris Johnson, urging him and his government to agree to a number of measures which they describe as ‘critical’ to the survival of many businesses and the supply chain and jobs that they support. “Most critically for Scotland is the need for a six-month derogation from the requirement to produce export health certificates and other export certification including haulage permits,” read the letter. “To be clear, there is no system available that can cope with the increased demand in EHCs likely to be required from January 1.” The letter also called for a Government commitment to bring forward a package of financial compensation for producers, processors, manufacturers and distributors who encounter losses as a direct result of border or market disruption, initially for a three-month period but to be reviewed thereafter. This, said the industry bodies, would provide reassurance and confidence at a time when businesses are fragile.

Scottish livestock producers’ beef and lamb looked set to still be the star attraction this Christmas following the news that Scotbeef, Bridge of Allan, should be fully operational this month, after a short Covid-19 shutdown. Scotbeef had temporarily suspended all operations over a weekend when a number of workers in the meat plant tested positive for Covid-19. A massive track and trace of its 330 staff at Bridge of Allan meant production was completely stalled for two days. However, with a large number employees testing negative for the virus, Scotbeef was back de-boning carcases. The incident could not have come at a worse time for the red meat industry, with the last two weeks of November and early December crucial to sourcing the best of Scottish beef and lamb for the lucrative Christmas market. That meant Scotbeef was gearing up for one of it’s busiest weeks, with just shy of 2000 head of prime cattle about to be processed. These cattle have since been killed at the company’s Scotbeef Inverurie plant, and down south through a joint venture operation in Sheffield. Lambs had been slaughtered and processed through Scotbeef’s Vivers Scotlamb plant, in Annan.

School milk looks set to remain on the menu for Scotland’s schoolchildren. The provision of daily dairy for kids has been in jeopardy as Brexit approaches, because leaving the EU means local authorities in Scotland can no longer receive funding under the EU school milk scheme to subsidise their own local schemes – and the UK government has not committed to replace this money. Having expressed its concerns over the potential loss of school milk, NFU Scotland was delighted to hear that the Scottish Government has stepped up to the plate and agreed to plug any funding gap should the UK Government fail to provide the necessary funds. To provide certainty to parents, schools and local authorities, ScotGov has committed funding of £722,000 this school year. NFUS vice president Charlie Adam, who sits on the union’s Milk Committee, said: “Milk and dairy are a central plank in the health of Scotland’s schoolchildren. NFUS wrote to the Deputy First Minister, John Swinney MSP, in his role as Cabinet Secretary of Education and Skills voicing the concerns of our members in August when we first heard that the valued EU funded school milk project was to cease. We are delighted that Scottish Government has responded quickly to ensure the scheme continues. For some time Scottish Government has provided positive reassurances that it values the clear contribution milk and dairy products make to our children’s health and that it was working hard behind the scenes to mitigate the effects of the loss of the EU school milk scheme,” said Mr Adam. “Going forward, NFUS hope to work with Scottish Government to look at the school milk scheme post-2021 and how that will be best delivered to the nation’s schools.”

Breeders of Blackface ewe lambs and other breeds bought by Northern Ireland’s farmers were in a state of panic as it looked like they would now face a lifetime stranded on Scottish soil due to changes in the export requirements for sheep moving from the Great British mainland. As the rules stand, such ewe lambs can only be exported to Northern Ireland once they are a year old and have been blood tested for maedi visna, which means that they cannot legally be shipped across the Irish Sea until 2021. However, the new post-Brexit export requirements which come into force on January 1, 2021, mean such lambs would not be able to travel to Ireland, as from that date, all breeding sheep for export as well as being tested for MV, also have to come from a scrapie monitored flock, or be genotyped ARR/ARR.

Following the Scottish Government’s decision not to proceed with implementing changes to the rent test, the Tenant Farming Commissioner introduced a comprehensive Code of Practice on Conducting Rent Reviews to ensure that rents are reviewed transparently and correctly. The Code is designed to help tenants and landlords reach agreement via objective consideration of all the relevant facts and circumstances. The code emphasised that rent reviews for agricultural holdings should be conducted as a negotiation – not as a ‘take it or leave it’ offer. It also includes suggestions on how to resolve disagreements between the parties and how parties can make a complaint about breaches of the Code.

Farmers and fans of Land Rover Defenders were advised to increase their security measures as organised criminal gangs are currently scouring the countryside in search of examples of the iconic marque to steal for a booming black market. First launched in 1948, Land Rovers have become a prized classic vehicle owner’s choice as well as still being used every day on farms across the country. But unfortunately, they aren’t making them anymore, and the short supply is driving unscrupulous demand. Speaking from insurer NFU Mutual, rural affairs specialist Rebecca Davidson said: “Land Rover Defenders continue to be a target for thieves and every week farmers and enthusiast owners are waking up to find their precious Land Rovers gone – or stripped of bonnets, doors and wings. There’s a burgeoning black market for parts, with many of these beloved classics getting dismantled in driveways and farmyards, or being whisked away to chop shops.” While at least four Defender thefts a week were being reported to NFU Mutual in January 2020, numbers fell to six a month from April to June. However, Defender thefts have risen sharply again and the country is heading back up towards preCovid levels, warned Ms Davidson. “We’re warning people in the countryside to be on high alert. Trackers, alarms and storing vehicles out of sight have all been effective measures protecting these British icons.”