The Scottish Government

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REVIEW OF AGRI-ENVIRONMENT SCHEME PAYMENT RATES:

MEETING WITH STAKEHOLDERS, 7 JULY 2005, PENTLAND HOUSE

NOTE OF MAIN POINTS

Present:

Ingrid Clayden, SEERAD- FBRD (Chair) Douglas Bell, SAC

John Henderson, SEERAD-Agriculture Staff Jonathan Hall, SRPBA

John Hood SEERAD- FBRD Daniel Gotts, SNH

Craig Campbell, NFUS Gavin Clark, SNH

Alison McKnight, FWAG Norman Leask, SCF

Duncan Orr-Ewing, LINK Becky Shaw, SCF

Peter Wallace, SEERAD- ASD

1. Brian Kaye and Carey Coombs will attend next weeks meeting to discuss OAS rates. Peter Wallace attended in place of Andrew Moxey.

Agreement of previous minutes

2. The minutes were agreed subject to a few minor changes.

3. Specific evidence was not provided for the capital loss of sale for stock disposal. It was agreed to include this cost when deciding on an incentive and to be explicit that this cost has been considered.

Rates to "Park"

4. Rate calculations for a number of RSS prescriptions were circulated around the group, incorporating changes to labour rates and contractor costs, which were agreed at the last meeting. These rates were discussed to decide an appropriate level of incentive and "park" them for final agreement at the end of the review process. The maximum incentive is 20%, except where a higher rate is deemed to be indispensable for effective implementation of the measure. However there is a restricted budget so the Chair highlighted the need to direct incentive to the most strongly desired conservation measures.

5. Option 1. Extensive Management of Mown Grassland for Birds

The importance of maintaining the differential with the corncrake measure was highlighted. Rate of £163 was parked.

Option 2. Management of open grazed grassland for birds

Rate of £110 was parked.

Option 3. Extensive management of mown grassland for corncrakes

The increased price of hay on the islands will be shown as an additional cost rather than income forgone. Rate of £263 was parked.

Option 4. Management of early and late cover for corncrakes

An incentive of around 10% was used. Rate of £170 was parked.

Option 5. Management of wet grassland for waders

Rate of £110 was parked.

Option 6. Management of species-rich grassland

This option also reads across to ESAs and CPS. Rate of £85 was parked including an incentive.

Option 7. Bracken Eradication

Rate of £26 was parked.

Option 8. Creation and Management of species-rich grassland

Daniel Gotts highlighted the need to include weed control costs. The percentage loss of income, which is 50% in the calculation was questioned.

Action: SNH to provide details of additional weed control costs and to look at evidence for the percentage loss of income this week.

Option 9. Management of Coastal Heath

Rate of £80 was parked.

Option 10. Management of Lowland Heath

Rate of £115 was parked.

Option 11. Management of Wetland

Rate of £85 was parked.

Option 12. Management of Lowland Raised Bogs

The cost of scrub control needs to be included in the calculation, before we can look at the need for an additional incentive

Action: SNH to provide evidence for scrub control costs to SEERAD this week.

Option 13. Creation and Management of Wetland

The different percentage loss for arable and livestock farms was discussed. The possibility of introducing two rates was raised and it was agreed that further details on relative loss of income were needed.

Action: Daniel Gotts to liaise Alison and provide details of percentage loss as soon as possible.

Option 14. Management of Water Margin

It was agreed that the 75% is appropriate for income forgone. Rate of £300 was parked.

Option 18. Stock Disposal

The capital loss of sale will be included in the incentive as discussed earlier. It was agreed to use the full 20% incentive in this case. Rate of £19.65 was parked.

Option 22/ 22A. Creation of Conservation Headlands

FWAG provided calculations for the costs of this measure. The SAC Handbook will be used for drying costs, therefore the only difference between FWAG and SEERAD calculations is the percentage yield loss. Rate of £80 was agreed for Option 22.

It was agreed to use 50% loss of yield for Option 22A (no N Fertilizer).

Action: Premium rate to be recalculated and circulated before next meeting.

Further Rates to Discuss

6. Hedgerows

The issue of "gapping up" was discussed. The capital payment for planting hedges does not include replacing lost plants only the initial 6 plants per metre. It was agreed to include the costs of gapping up under the management payment at this stage. It would however, be useful to revise the division between hedge management and hedge planting prescriptions in the future.

Action: Alison to circulate hedgerow calculations after revisiting saw rates.

People Issues

• A handout showing rough numbers of scheme participants was passed to the group for information.

Confirmation of future meetings

14 July, from 10:00am - 1:00pm (Pentland House)

21 July, from 10:00am - 1:00pm (Pentland House)

28 July, from 10:00am - 1:00pm (Pentland House)

4 August, from 2:00pm - 5:00pm (Pentland House)

FBRD

7 July 2005

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