The President of NFU Scotland has come out fighting to defend the close working relationship between NFUS and the Scottish Government.

In a letter to members Martin Kennedy said he is continually challenged on the relationship with government but in many cases the union “vociferously disagrees” with what is proposed and it is “abundantly clear that our influence has determined the main direction of travel and will deliver the outcomes we need.”

Mr Kennedy is yet to see enough government decisions on the Agriculture Bill against Union policy to consider leaving his position as co-chair the Agricultural Reform Implementation Oversight Board with Rural Affairs Secretary Mairi Gougeon

In a message to members, Mr Kennedy said he shared the industry frustration at pace of agricultural policy development and the lack of clarity.

However, he was clear: “We will still have a baseline of direct payments to underpin our businesses, we will still maintain our vital voluntary coupled support schemes, albeit there will be conditions attached that will also help the bottom line, and crucially there will remain measures to support disadvantaged areas without which most of our LFA producers would struggle to survive.”

He added: “The Scottish Government and all politicians must ensure the new Agriculture Bill for Scotland establishes a support framework all about accessible and practical measures, working with farming enterprises, that incentivise actions that underpin the viability and resilience of agricultural businesses.”

Mr Kennedy also called for a commitment from the Scottish Government to a multi-annual and ring-fenced funding settlement beyond 2024 with at least 80 percent of that overall budget being exclusively delivered as ‘direct’ support in the new Tiers 1 and 2 of non-competitive base and enhanced direct support payments.

He said: “Because only farming and crofting can do the heavy lifting required, then it is vital that the bulk of available funding is exclusively allocated to the direct support under Tiers 1 and 2.

“This is where farmers and crofters can deliver most benefit. Targeting future funding via Tiers 1 and 2 recognises that this is where most work is required.”

Looking to the detail of the Agriculture Bill, the NFUS says it must state a clear purpose of delivering food production, climate action and nature restoration, while underpinning rural prosperity.

Among the red lines, the union states that Tier 1 Tier 1 must provide for a direct ‘base’ payment to support active farming and food producers to provide financial certainty to farmers and crofters.

It must also enable ‘redistribution’ of Tier 1 payments to provide frontloading of financial support for all agricultural businesses to benefit relatively smaller units with higher per unit costs.

In terms of the second tier, the organisation says it must provide for direct ‘enhanced’ support payment for farmers and food producers which will offer additional support via management measures enabling producers to be more efficient and to incentivise sustainable and regenerative farming, and absolutely must deliver of a menu of non-competitive Tier 2 options for all farm and croft types and sizes, while also recognising and rewarding existing management and practices beyond cross-compliance.

Among Tier 3 demands are the introduction of indirect ‘elective payments’ to support individuals, co operatives or groups and it must enable targeted funding for specific actions to reduce greenhouse gas emissions, adapt to climate change, and protect, restore and improve nature.

For the final tier, Tier 4 must provide indirect ‘complementary’ support to tiers 1, 2 and 3, including the delivery of advisory services.

Concluding the list of red lines, NFU Scotland says the Bill must include powers to enable the four-tiered payment framework to be adaptable and flexible over time depending on emerging best practice, improvements in technology and scientific evidence, as well as the operating environment in which Scottish agriculture finds itself.

The Bill must include powers to enable payments to support the agricultural industry when there are exceptional or unforeseen conditions or major crises affecting agricultural production.

The Bill must include provisions for grants to support businesses in the agri-food supply chain to encourage sustainability, efficiency, co-operation, industry development, education, processing and marketing.

The Bill must include powers to make payments to support improvements in animal health, welfare and biosecurity beyond legal minimum standards and modernise tenant farming legislation.