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Report for Scottish Executive Environment and Rural Affairs Department (December 2006)
Gerald Schwarz*, Ron Wilson**, Vicki Swales***, Rob Burton*, Iain Wright*, Alana Gilbert*, Jim McLeod* and Margaret McKeen*
*The Macaulay Institute **The University of Edinburgh ***Institute for European Environmental Policy
ISBN 978 0 7559 1497 5 (Web only publication)
This document is also available in pdf format (2.1mb)

Contents

Suggested Citation for this report

Acknowledgements

Executive Summary

Chapter 1 Introduction
1.1 Background
1.2 Objectives

Chapter 2 Methodology
2.1 Introduction
2.2 Development of counterfactual scenarios
2.3 Methodology used for the review of LFA policy and the relative disadvantage of Scottish LFA farms
2.3.1 Review of the rationale, and design of, LFASS
2.3.2 Quantification of the relative disadvantage of Scottish LFA farmers
2.4 Description of the surveys of LFASS recipients and related businesses
2.4.1 Survey of LFASS recipients
2.4.2 Survey of upstream and downstream businesses
2.5 Modelling of economic linkages and multipliers of LFA agriculture
2.6 Methodology used for the environmental impact analysis
2.6.1 Environmental assessment of LFASS scenarios
2.6.2 HillPlan model

Chapter 3 Review of the Development, Rationale, Criticism, Designation and Quantification of LFASS
3.1 Introduction
3.2 The development of the Less Favoured Areas support measure
3.3 The rationale for government intervention in LFA
3.4 Criticisms of the Less Favoured Areas support measure
3.5 The designation of LFAs
3.6 Quantifying the relative disadvantage of Scottish LFA farmers
3.6.1 Whole farm analysis
3.6.2 Livestock output and input analysis
3.6.3 Estimating performance shortfalls due to LFA farming
3.7 Summary

Chapter 4 Recent Trends in Scottish Lfas
4.1 Agricultural systems and recent trends in the Scottish LFA
4.2 Recent environmental trends in the Scottish LFA

Chapter 5 Social Assessment of LFASS Scenarios
5.1 A survey of LFASS recipients
5.1.1 Introduction
5.1.2 Analysis
5.2 A survey of businesses
5.3 Social implications of alternative LFASS scenarios
5.3.1 Scenario 2
5.3.2 Scenario 3
5.3.3 Scenario 4
5.3.4 Scenario 5

Chapter 6 Economic Assessment of LFASS Scenarios
6.1 Introduction and objectives of the economic analysis
6.2 LFA agriculture and the wider Scottish economy (base Scenario 1)
6.3 Economic implications of alternative LFASS scenarios
6.3.1 Scenario 2
6.3.2 Scenario 3
6.3.3 Scenario 4
6.3.4 Scenario 5

Chapter 7 Environmental Assessment of LFASS Scenarios
7.1 Introduction.
7.2 Scenario 1
7.2.1 The relationship between LFA farming and the environment
7.2.2 The contribution of LFASS to the environment
7.2.3 Summary
7.3 Scenario 2
7.4 Scenario 3
7.5 Scenario 4
7.6 Scenario 5
7.7 Overall environmental impacts of Scenarios 1-5
7.8 Results from the HillPlan model
7.8.1 Introduction
7.8.2 Case studies
7.8.3 Results
7.8.4 Summary

Chapter 8 Synthesis of the Scenarios

Chapter 9 Conclusions

References

Appendix
2.4.1a Survey questionnaire for LFA farmers
2.4.1b Letter to farmers
2.4.2 Business survey questionnaire
2.4.3 Analytical methods
2.5 Developing a SAM and multiplier analysis
2.6.2 Description of the HillPlan model
3.2 The development of the Less Favoured Area support measure
3.5 The designation of Less Favoured Areas
3.6 Quantifying the relative disadvantage of Scottish LFA farmers
4.1 Recent trends in agriculture in the Scottish LFAs
6.2 Backward and forward multiplier matrices

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