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

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Post-CAP farmers encouraged to innovate

09/11/2004

Arable farmers should be innovative in identifying new opportunities for their businesses, the annual Scottish Crops Conference was told today.

Rural Development Minister Ross Finnie highlighted non-food crops such as those being developed to provide materials for the health industry as a source of new opportunities for farmers in the post-CAP reform era.

Mr Finnie said :

"Scottish Ministers are committed to building a profitable, successful farming industry in Scotland.

"We are on the brink of major change. The Single Farm Payment Scheme gives all farmers the opportunity to restructure their businesses to make them more sustainable in the longer term.

"Part of this restructuring for our arable farmers and businesses could include the production of novel crops. Future possibilities include biofuel, biodegradable packaging and turning cellulose into energy.

"The Executive is playing its part in identifying new crop varieties and new uses for established crops. As well as biomass crops, we are investigating whether crop products can provide raw materials for the healthcare industry.

"This offers real opportunities for the Scottish farming industry and can play a part in helping farm businesses improve their competitiveness, maximise their returns and produce for the market."

Mr Finnie also announced details of how the Executive would ensure that farmers meet their obligations to maintain land in good environmental and agricultural condition.

SEERAD, working with Scottish Natural Heritage and the Scottish Environmental Protection Agency where appropriate, will have overall responsibility for ensuring that cross compliance inspections are carried out according to the Regulations.

Under CAP Reform there will no longer be a requirement to produce cereals or oilseed crops to receive subsidy and producers can grow for the market. It will be entirely up to producers what to grow according to the interests of the business.

The new Single Farm Payment Scheme which will come into operation from January 1, 2005, replacing seven main direct subsidy schemes, including the Arable Area Payment Scheme.

Arable Area Payment Scheme 2004 claims will start to be paid from 16 November, the first day of the payment window.

It is expected to pay around £109 million on that day and the bulk of claims within the following two weeks with remaining claims paid by the closure of the payment window on January 31, 2005.

SEERAD funds a programme of plant and crops science research which amounts to £10 million per year.

This aims to help arable farmers in Scotland understand factors which limit crop production in Scotland.

It also explores new opportunities with non-food crops such as the potential of using Scottish crops to produce energy (bio-mass crops) and investigates whether crop products can provide raw materials for the healthcare industry.

Page updated: Tuesday, November 9, 2004