SCOTLAND'S latest round of organic conversion grants saw 34 farms apply to make the change, according to figures obtained by The Scottish Farmer.

If all these applications are successful, they will bring over 8300 hectares under organic production. The Scottish Government stated last autumn that its aim is to double the area under organic production, which would need the total area of organic farms to surpass over 210,000 hectares or 3% of the farmed area.

With 5355 hectares, unimproved grassland and rough grazing was the largest area within these latest applications – and if accepted, each hectare will get paid for conversion at a rate of £12.50 in years one and two, before dropping to £8.50 in years three to five.

There were 1790 hectares of grassland entered for conversion, attracting a rate of £140 per hectare then £55 per hectare. The area of arable land applied for conversion is nearly 1200 hectares, which will get £280 then £65 if successful. Finally, over 50 hectares of fruit and vegetable land applied for conversion which has a payment rate of £400/hectare then £200/hectare.

A ScotGov spokesperson said: “We recognise the crucial role that organic farming methods play in our drive towards a net zero and resilient rural economy. We are committed to seeing more organic farming and organic produce for sale in Scotland, and are working with the sector to establish a new Organic Food and Farming Action Plan.

"We are continuing to invest £36 million through the Agri-Environment Climate Scheme. Within AECS, we aim to support farmers and groups of farmers to convert their land to organic status and maintain organic farming methods throughout the country. This will assist in delivering increased biodiversity, improved soils and contribute to mitigating climate change at the same time as providing high quality, locally produced food.”

The figures were cautiously welcomed by the Scottish Organic Producers Association, which was delighted to see growth in the sector but was anxious to ensure that supply didn’t outstrip demand. The organisation helped many of the 34 farmers seeking to go organic with their application to AECS. The farmers won't know if they are successful until Christmas, then they have six months to begin conversion which only allows certified sales of organic two years later. This means this year’s applications will not be selling organic produce until 2025 at the earliest.

Organic policy manager Debs Roberts said: “We see the figures as a positive but with a cautionary note. If too much land goes into conversion, then we worry about the ability to get all the product to market. We need to balance supply and demand.”

Supply and demand is finely balanced for many organic farmers in Scotland who can find it a challenge to gain a premium for some products at certain times of the year when a glut of product his the market. This is most often the case at peak production of organic lamb, when higher volumes coming forward in September to November bring organic premiums down. There is also anxiety that the amount of vegetable land under organic is above what the market demands.

Read more: Organics moving from the margins to the mainstream

Part of the solution,according to SOPA, would be to rebalance some of the conversion payment rates with reduced cash for fruit and veg, but more money put into arable and improved grassland for livestock. The payment rates have been set as they are for eight years and the association would like them looked at again.

Mrs Roberts was keen to point out that environmental sustainability is not delivered without financial sustainability of the business. Despite rising costs in farming, the mood amongst SOPA’s 350 members remains positive, with experienced organic farmers who have established markets the most confident.

However the organisation is keen to tread warily as shoppers see their budget tighten with the cost of living crisis. “We need consumers to understand that organic doesn’t always mean expensive,” she added. “The cost of organic isn’t just the food but also the natural capital which is being built up. Buying organic delivers on nature, climate change and carbon by the very nature of it.”

SOPA certifies around 79,400h of organic land, which is the equivalent to 76% of all organic land in Scotland. Last year SOPA had 8000 hectares starting conversion, which accounted for 85% of all land converting in Scotland. Scotland's organic area is currently 1.5% of all agricultural land.