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ANNEX F
EXISTING SCHEMES FUNDED BY SEERAD, FORESTRY COMMISSION SCOTLAND AND SCOTTISH NATURAL HERITAGE
Agri-environment Schemes
Much of rural Scotland is of high environmental quality, including areas which are of European and national significance. Agricultural activity has a major role in creating and helping to maintain these important habitats and landscapes. Agri-environment schemes have operated in Scotland since 1987. Several thousand farmers and crofters have taken advantage of the schemes to manage their land in the interests of environmental conservation - enhancing biodiversity, habitats and landscapes - and helping address problems of diffuse pollution.
Agri-environment support is currently delivered through a number of Schemes, some of which are now closed to new applications. The closed Schemes are:
- The Environmentally Sensitive Area Schemes;
- The Countryside Premium Scheme; and,
- The Habitats Scheme.
The Schemes which are currently open for applications are:
- The Rural Stewardship Scheme ( RSS); and,
- The Organic Aid Scheme ( OAS).
The RSS and OAS will close to new applications in April 2006. Existing agreements under all of the Schemes will run their course and the cost of these beyond 2006 will be met from the resources in the new SRDP.
From 2007, farmers and crofters will be able to apply for agri-environment support through Tiers 2 and 3 of Land Management Contracts. This paper sets out in Annex E the measures that may be available through LMCs. The measures included in the SRDP will be those which:
- contribute to the Executive's priorities for conserving and enhancing biodiversity;
- provide well-maintained landscapes that benefit people and business;
- protect and enhance water and soil quality; and,
- contribute to climate change mitigation.
It will also be essential to consider, in view of the constraints on funding, which of the many measures that have been suggested should be the focus of support in the 2007-13 SRDP.
Agri-environment support remains a mandatory element in the new RDR. Given that there has been support for agri-environment measures in Scotland since 1987, the increased focus on rural development and the need for Pillar II support to deliver a wide range of public goods, we propose, early in the new Programme, to undertake a full-scale review of agri-environment support. The review will be undertaken jointly with stakeholders and will cover all aspects of the principles, aims, operation and delivery of the Schemes.
Business development schemes
SEERAD currently funds two main schemes on business development: the Agricultural Business Development Scheme ( ABDS) (as part of the Highlands and Islands Special Transitional Programme) and the Farm Business Development Scheme ( FBDS) (which is payable in the rest of Scotland). A Crofting Counties Development Scheme is also paid in crofting areas. These schemes have two components. The 'Investment in Holdings' component supports the restructuring and re-orientation of farm businesses (including new business opportunities, improvements in product quality and collaboration among producers) and the 'Diversification' component provides assistance to farm households and families to diversify into alternative agricultural activities or non-agricultural activities. Support is also provided for training linked to projects undertaken with support from the schemes and for marketing associated with the diversification activities.
From 2007, we propose that business development funding (possibly including the crofting element) will be part of the integrated LMC approach. As with the current ABDS/ FBDS, there will continue to be support for the creation and extension of diversified businesses and for restructuring existing businesses. The majority of this support will come under the competitive Tier 3 of LMCs although there may be a small number of measures under Tier 2.
The existing focus on agricultural businesses will be widened out to incorporate a broader range of land management activities, including forestry and the management of sporting estates. The support will contribute to the achievement of spend minima for Axis 1 (restructuring to improve competitiveness) and Axis 3 (promoting a more diverse rural economy). The list of measures shown in Annex E includes a number of possible measures that would deliver these aims.
The modular approach to Rural Development Frameworks will include a business planning component which will be a condition for access to business development funding.
Crofting schemes
There are various schemes that are paid to crofters. In addition to the Crofting Counties Development Scheme (see 'Business Development schemes' above), two crofting schemes may be suitable for inclusion in the SRDP. These are the Crofting Counties Agricultural Grants Scheme ( CCAGS) and the Crofters Cattle Quality Improvement Scheme ( CCQIS).
(i) CCAGS - There have been schemes for providing capital assistance to crofters for agricultural production since the 1950s. The latest scheme (with the same name as previous schemes) came into operation on 1 st April 2006. This scheme has a similar purpose to that currently in operation, providing grants to crofters and certain other occupiers of land to aid and develop agricultural production on crofts or holdings in the Crofting Counties. It is open to crofters, small farmers in the Crofting Counties of a similar status to crofters, and crofting groups. Eligible operations are similar to the previous scheme and include land improvement, agricultural building, provision of access and services, and facilities for keeping livestock. The scheme is subject to State Aid clearance which now appears to be imminent. It is intended to run until a new scheme funded by the Crofters Commission is available. It is currently planned that it will be superceded by early 2008.
(ii) CCQIS - This scheme provides a 50% grant towards the hire or purchase of bulls, conditional on production of clear and measurable improvement proposals. The scheme is open to groups of crofters to improve the genetic quality of their cattle. The scheme is also subject to State Aid clearance and is due to open later in 2006.
Forestry
The current system of financial support for planting and management of woodlands is based on the Scottish Forestry Grants Scheme ( SFGS), administered by Forestry Commission Scotland, and the Farmland Premium, administered by the Scottish Executive Environment and Rural Affairs Department. Over time, these schemes have included payments to fulfil objectives at a regional and/or local level (e.g. through Challenge Funds and Locational Premia) and to target specific activities (e.g. the provision of woodland access facilities).
The SFGS will be revised for the 2007-13 SRDP so that the bulk of forestry support can be delivered through LMCs. This will include support for:
- small-scale woodland creation
- larger woodland creation, including short rotation coppice, and with potential for Regional Challenge top-up support;
- forest plan preparation;
- sustainable woodland management;
- woodland improvement;
- woodland recreation and community involvement (covered by generic measures in Tier 2 specific measures in Tier 3); and,
- energy from woodlands (via LMC business development measures).
In addition, Forestry Commission Scotland will administer some stand-alone measures, including a Forestry for People Challenge and the Strategic Timber Transport Scheme.
Forestry Commission Scotland will be carrying out a public consultation on the detailed plans for delivering forestry measures. This consultation will be launched shortly in April 2006 and will be available on the Commission's website ( http://www.forestry.gov.uk/scotland).
LEADER
In accordance with the new RDR, LEADER will be brought into the 2007-13 SRDP. LEADER+ (2000-2006 period) was designed to help rural actors consider the long-term potential of their local area. It is a stand alone programme. LEADER+ is funded through EAGGF but can also support activity that would normally be funded under ERDF and ESF. Previous programmes were funded through ERDF, ESF and EAGGF, although through all programmes activities consistent with all three funds were/are eligible. Currently LEADER encourages the implementation of integrated, high-quality and innovative original strategies for sustainable development with a strong focus on local partnership and networks of exchange of experience. LEADER attempts to prioritise projects featuring innovation or high risk but will also address small-scale social needs such as youth and developing communities.
Since its introduction in the early 1990s, LEADER has been delivered by locals for locals, within national frameworks. Local Action Groups ( LAGs) had and have the responsibility of complementing and co-ordinating activity for the economic and social benefit of the local area. LAGs were selected through a competitive bid process and comprise 50% public sector and 50% socio-economic partners. The current LEADER programme sought a lead partner such as Local Authorities ( LAs) or LECs to assist the delivery of LEADER+ and assume financial responsibility for the LAG. The lead applicant partners provide accomodation, management and administrative assistance to the LAG and co-ordinator and arrange match-funding for the administration of the LAG. LAGs channel LEADER support towards individual projects that fit with the local rural development strategies outlined in the business plans.
Delivery of the current LEADER radically changed to decision making and administration mechanism of Local Action Groups ( LAGs). LAGs comprise 50% public sector and 50% private individuals involvement. The current LEADER programme sought local sponsoring partners such as Local Authorities ( LAs) or LECs to assist the delivery of Leader+. The main sponsoring partners match fund, provide accomodation, management and administrative assistance to the LAG and co-ordinator. LEADER support is channelled towards individual projects by LAGs who produced local rural development strategies and business plans and successfully bid to the Executive for LEADER funds to implement these
Natural Care
The Natural Care scheme provides support to ensure that our most valued wildlife sites are maintained in favourable condition. The scheme plays an important role in achieving national and international objectives and obligations. Scottish Natural Heritage have operated the scheme since 2001 and have recognised the benefits in making financial support for managing designated sites as part of a wider, integrated programme.
It is proposed that, from 2007, most new agreements for Natural Care will be delivered through LMCs.
Processing and Marketing Grant Schemes
The current Agriculture Processing and Marketing Grant Schemes were launched in 2001 and will make final commitments in 2006 (with final payments made by 2008). The schemes comprise that for the Highlands and Islands (as part of the Highlands and Islands Special Transitional Programme) and that which is payable in the rest of Scotland. The Schemes provide assistance towards capital and non-capital projects that encourage Scotland's primary producers and food processors to develop innovative products, add value to raw materials, co-operate to exploit new markets and shorten the food supply chain by linking producers with processors.
The Schemes cover the full range of food processing activity as long as projects deliver benefits to Scottish primary producers. This can range from on farm processing units adding value to their own produce, local processing facilities sourcing direct from farms, large facilities sourcing Scotland wide raw materials and supplying multiple outlets and leading processors in urban areas throughout Scotland. All projects assisted involve the processing of Scottish agricultural produce.
We propose that elements of the Schemes are brought within the 2007-13 SRDP. These elements refer to projects supported in rural areas, with a close link to land management holdings, rather than projects (often larger in scale) that are funded in urban areas.
Rural Partnership Fund
The Scottish Rural Partnership Fund ( SRPF) was an annual competitive grants scheme established in 1996 and operated by SEERAD to support communities across rural Scotland to take forward rural development activities and help communities to find local solutions to local problems. It provided support for a range of activities and projects, including revenue aid for local capacity building and grant support for the provision of, and improvements in, local community facilities.
A wide ranging, independent review of the fund in 2004 showed that, while the fund was highly valued for the uniquely rural opportunity it offered, changes were needed to ensure clarity and complementarity of funding sources and that aid streams best meet rural needs. The programmes offered under the SRPF banner were therefore withdrawn in April 2005, following the final competitive grant round for 2005/06. No new projects were approved, although funds continue to be available from previous rounds for ongoing, approved projects. The benefits of SRPF funding continue to be gained.
As an interim measure flow from the review, the Rural Development Small Awards Fund ( RDSAF) was launched at the Rural Services Conference on 27 September 2005. The RDSAF is a 2 year pilot programme with a budget of £0.5m per year which can offer grant up to £5,000 to assist rural community groups with funding for group activities or small capital purchases.
SRPF expenditure provision is also being used to help meet the Executive's commitment to Closing the Opportunity Gap in rural Scotland. During 2005, 22 Rural Services Priority Areas ( RSPAs) were designated and allocated a total of £2.2m (£100k per RSPA) to promote measurable improvements in service access and quality by March 2008. Funding is provided to the relevant CPPs through their Local Authorities. It is for the CPPs to decide how best to spend this money to meet local priorities, subject to normal accountability arrangements and agreement with the Department on measurable, targeted improvements being reached. The aim is for the lessons learned to be used to seek improvements, in the longer term, across rural Scotland.
The SRPF programme and funding have provided (indeed currently continue to provide) support for rural communities for activities and "projects" provided for under the Rural Development Regulation - including capacity building, the provision/improvement of services/access to services and provision for community facilities and amenities which are, or may be, covered by LEADER arrangements and other activities under the RDR (notably Axis 3: improving the quality of life in rural areas and encouraging diversification and growth of economic activity). This consultation document therefore seeks views on proposals to integrate SRPF funding into the Scottish Rural Development Programme 2007-13: and on the nature and balance of activities (capacity building and "projects") for which funding should be prioritised.
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