Through its SAC Consulting division Scotland’s Rural College is encouraging farmers in Scotland to assess the impact of the coming CAP reforms sooner rather than later. New advice being sent to clients warns that if people wait until all the information and advice on the changes are published it will lead to rushed rather than considered approach.
Douglas Bell, Senior Agricultural Policy Consultant, and author of the guidance material, says:
“As ever, the ‘devil will be in the detail’ but announcements already made by the Scottish Government on the main decisions give sufficient guidance to enable most farmers to at least estimate the likely financial impact on their businesses. In terms of management it makes good business sense to start assessing potential impacts and planning any mitigation as early as possible. Waiting until every last piece of information has been published before addressing any issues can lead to ‘fire brigade’ management rather than a more measured approach.”
For most farmers adapting to CAP reform will typically involve three phases. First is understanding the new rules, ensuring compliance with greening requirements and avoiding pitfalls. Second comes assessing the financial impact in terms of future subsidy receipts, and finally; planning and implementing mitigation strategies where necessary.
However, due to the current slow release of information about the reforms, many farmers could find themselves focusing too much on the first phase as they develop their knowledge of the changes, and not concentrating enough on phases two and three which are key in terms of meeting business aims and objectives in the future.
With this is mind, SAC Consulting is working to ensure its clients have the most up-to-date CAP information by publishing new guidance as details emerge, and will be holding a programme of meetings over the winter which will address the key issues raised by the changes. The aim of this programme is to help farmers get to grips with the fundamentals of the reforms, before helping them move on to assess their financial impacts and support them in tackling any potential problems.
The first guidance has now been issued and includes a Summary of Pillar One (direct payments) and an assessment of the Scottish Rural Development Programme (SRDP) 2014-2020. There are also notes on how the changes could potentially affect Scottish farms, and the impact of greening.
The meetings are provisionally planned for the winter months, and dates will be announced once more details on implementation have been released. However in the meantime, specific queries can be addressed by contacting local SAC Consulting offices.
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