Report highlights unique role of agriculture

A new report produced by Scotland’s Rural College (SRUC) has highlighted agriculture’s importance, and also calls on government to use this new evidence in policy decisions.

‘Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides’ offers new analysis of Scottish Government data, and details insights from farmers and crofters, agricultural supply chain businesses, communities and stakeholders.

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The research found that, in their current form, future policy proposals present some risks for some island economies, environments, and communities.

One Shetland farmer, whose family have farmed for generations, said: “Agriculture is the lifeblood of the islands. Not only does it provide employment and produce for them, but it also provides the beating heart of many communities.

“Islands can often be overlooked when it comes to funding and policymaking, so we welcome this report that highlights how important agriculture is to us.”

The study also confirmed that agriculture accounts for a higher share of private businesses, turnover and employment, as well as the proportion of total adult population, in these communities compared to other local authorities in Scotland, and that there are differences both within and between the island groups.

In this context, it identifies that agriculture on the islands faces some unique challenges:

• Agriculture has important local multiplier effects on island economies, along local supply chains and into the wider rural economy.

• The Island areas contain a high proportion of nationally and internationally important habitats, species and peatlands reflecting the unique interaction between land management and nature.

• The agricultural sector across all three island groups is constrained by several critical factors, including: the unreliability and higher costs of haulage of inputs; uncertainty over future ferry services; an ageing and shrinking workforce: and inflation impacts that have eroded financial support for farmers and crofters.

• There has been long term consolidation of the number of farms and crofts receiving agricultural support across the three island areas, with some localised declines in agricultural activity, most notably the decline in sheep production in the Outer Hebrides.

• Practical and policy solutions need to be found to retain agricultural and environmental activity in respect of crofting and common grazings, particularly in Shetland and the Outer Hebrides.

• Evidence on the impacts of peripherality and distance from markets must be embedded in future support schemes.

• The report findings indicate that a thorough Islands Community Impact Assessment (ICIA) is likely to be needed in relation to the combined effects of different strands of future agricultural policy interventions, and the delivery of the ‘Rural Support Plan’.

• Community Led Local Development (CLLD) has a critical role to play in sustaining island communities, particularly by sharing solutions and experience across island groups.

The work coincided with the progress of the Agriculture and Rural Communities Bill through the Scottish Parliament. The findings have been welcomed by councils in Orkney, Shetland and the Western Isles.

Speaking on behalf of the three island areas, Orkney Islands Council’s leader Heather Woodbridge commented: “The report demonstrates clearly that our agricultural sector is woven into the fabric of our communities and the role it plays in managing the environment of our beautiful islands. I would urge the Scottish Government to factor this report into their evidence-based policy making approach when forming the Rural Support Plan, Rural Delivery Plan and National Islands Plan, as well as other secondary legislation accompanying the Agriculture and Rural Communities Bill.

“What is abundantly clear, is that our farmers are proud of the very important role that they play in our communities and that with appropriate policy and other support, agriculture can contribute to buoyant island economies and strong island communities.”

Professor Steven Thomson from SRUC, who led the research, said: “This work was an opportunity to utilise a wide array of data and learn from the lived-in experiences of locals to stress-test some of the thinking on future agricultural policy in Scotland through an island community lens.

“Importantly, the study allowed space to consider how, for example: conditional support may impact common grazings; how compliance costs may have disproportionate impacts on the smallest farms and crofts, and that opportunities to deliver better policy solutions such as redistributive support or small-recipient schemes exist."

Rural affairs secretary Mairi Gougeon said: “I welcome this important report. Evidence based policy making is crucial to addressing the unique challenges and opportunities faced by our island communities.

“This report offers valuable insights that will help us to make informed decisions around how we continue to support the sustainable development of our islands.”