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This item was published during the term of a previous administration that ended in April 2007

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Organic farming developments

30/03/2004

New regulations that will introduce new payment rates and support for the organic fruit and vegetable sector were announced today.

The Organic Aid Scheme (Scotland) Regulations 2004 come into force on May 1 and include:

  • increases in grants to encourage the conversion of organic land
  • capital grants to support activity for conversion - for example building or restoring dykes
    maintenance grants
  • contributions towards the costs of preparing a conversion plan

Deputy Rural Development Minister Allan Wilson today published the first annual report on delivery of the Organic Action Plan and outlined improvements to the scheme.

He said:

"The Scottish Executive is committed to implementing our Organic Action Plan, to develop the infrastructure needed to increase Scotland's share of the organic food market and increase the proportion of organic food available in Scotland. We also pledged to make further resources available to farmers wishing to convert to organic farming.

"he first annual report demonstrates the progress we, and others, have made as well as the clear potential for this sector within Scotland. It also reflects the important work done by Scottish Food and Drink in developing market opportunites and highlight's the willingness of the farming community to respond to market trends.

"he improvements we have made to the Organic Aid Scheme, following extensive consultation, will assist greatly with the conversion from traditional to organic methods. Something that is good news for both farmers and consumers."


New payments rates - set out in schedule three of the 2004 regulations - have been introduced for conversion grants. Rates apply to those already or about to convert land. Total payment for converting land over a five year period will be:-

  • £595 per hectare for eligible arable land
  • £370 per hectare for improved grassland
  • £25 per hectare for rough grazing or unimproved grassland

Introduce a new category of payment for converting land on which vegetable and fruit is grown to organic farming methods. It is calculated that the total payment for converting land over a five year period will be 720 pounds per hectare.

Provide conversion grant for a maximum of 1,000 hectares per holding. Of this only 300 hectares can be eligible arable land, improved grassland or vegetable and fruit land or a mixture of the three.

Capital grants are available for a list of essential activities including fencing, building or restoring dykes and walls, install guards for hedge plants etc. Each activity must be carried out within the first year of conversion in accordance with the requirements specified in Schedule One of the 2004 Regulations. A maximum payment of 2,800 pounds shall apply to all capital activities.

Subject to State Aid application, introduce contribution to the costs of professionally prepared organic conversion plans.

Introduce maintenance grants calculated over a five year period as:

  • £150 per hectare for arable land
  • £70 per hectare for improved grassland
  • £70 per hectare for vegetable and fruit land

Rough grazing or unimproved grassland will qualify for a flat rate payment of 500 pounds per year. Farmers will be entitled to maintenance grant calculated on a per hectare basis or on a flat rate basis but not both.

Maintenance grants of a maximum 1,000 hectares per holding. Of these 1,000 hectares only 300 hectares can be eligible arable land, improved grassland or vegetable and fruit land or a mixture of the three.

Farmers applying for maintenance payments will be required to comply with the Maintenance Obligations set out in Schedule Five of the 2004 Regulations.

Clarify when farmers can covert their land to organic farming methods in phases and when farmers can enter their land into the maintenance part of the scheme in phases.

The regulations have been introduced following a consultation exercise in 2003 which proposed improvements to the agri-environment schemes in Scotland. The consultation included submissions from key farming and conservation interest groups. This consultation process was augmented by the Organic Stakeholder Working Group which considered the technical detail behind the headline issues. The new scheme provisions were agreed by Scottish Ministers and approved by the Commission on January 21 as a modification to the Scottish Rural Development Programme.

The scheme is an integral part of the Rural Development Plan for Scotland and will be co-financed by the EW, utilising amounts raised from the modulation of CAP direct payments. The instrument has no effect on local government.

Page updated: Saturday, July 17, 2004