Rural Exchange

Agricultural Policy

The Agricultural Policy Development section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone document from the link below. Some of the key points made in this section of the report include:

Since the UK’s exit from the EU, different parts of the UK have exhibited different policy trajectories.  Whilst final decisions have yet to be made, outline proposals for future support arrangements are published in the Agriculture and Rural Communities (Scotland) Bill, and include a 4-tier framework of support:

  • Tier 1 (base) will offer a non-competitive decoupled area payment to all eligible claimants adhering to a set of management proscriptions and prescriptions.  This will be similar to the current Basic Payment Scheme and associated cross-compliance plus Good Agricultural and Environmental Condition (GAEC), but with some additional conditionalities.
  • Tier 2 (enhanced) will also be a non-competitive decoupled area payment (plus some coupled payments), offered in return for adherence to more demanding conditionalities.  This will be similar to current Greening scheme, albeit with a greater variety of options, some of which are currently found in Agri Environment Climate Scheme (AECS).  It is likely that entry to Tier 2 will require enrolment in Tier 1.  
  • Tier 3 (elective) support will be akin to current AECS, Forestry Grant Scheme and capital grant schemes, offering support on a competitive basis.  It is uncertain at the time of writing if there will be a requirement for prior Tier 1 and Tier 2 entry for all of the schemes, but there may be an expectation of progression within agri-environment climate type schemes across the Tiers.
  • Tier 4 (complementary) support will offer information, advice and training, potentially akin to the current Farm Advisory Service (FAS).  There is discussion of continued professional development (CPD) requirements for farmers and crofter, but also consultants – although there is limited detail on this at this stage.

It is not clear how the Less Favoured Area Support Scheme (LFASS) fits into this four-tier structure.  LFASS is a very important component of overall support in the islands but is a complex scheme that is historically based and requires modernisation to reflect contemporary agricultural production and challenges in Scotland’s most marginal areas.  

In addition to the longer term policy changes, the Scottish Government have committed to changes in agricultural support conditions in 2025.  From 2025 farmers and crofters will also have to:

  • Comply with a new GAEC standard to protect peatland and wetland.   
  • Undertake components of a Whole Farm Plan as new entry level standards that will include soil testing, animal health and welfare planning, carbon audits, biodiversity audits and integrated land management plans.   
  • Meet a new 410-day calving interval eligibility criteria for calves claimed in the Scottish Suckler Beef Support Scheme “to help cut emissions intensity and make beef production more efficient”.

The Scottish Government considered that an Islands Communities Impact Assessment (ICIA) was not required for the  Agriculture and Rural Communities (Scotland) Bill as being a framework bill  none of the policy details existed to determine the ‘on-ground’ impacts in an ICIA. Details of  future support schemes will come through secondary legislation, as and when prepared – with a risk that the sum of the parts (and island impacts) are  never clear until all secondary legislation is laid before parliament.  Hence, for example, an ICIA to accompany the Rural Support Plan might be appropriate where how policy can deliver a ‘Just Transition’ in an islands context can also be considered.

The download link to this section of the report is found below, or you can return to the main report page here. 

Further Reading

More within the Agricultural Policy project

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Research Presentations

As part of the project outputs the findings from Shetland, Orkney and Outer Hebrides were presented to Local Authority staff, elected Councillors and Local Action Group members upon completion of...[more]

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Report Annexes

The Report Annexes of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone document...[more]

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SWOT Conclusions and Recommendation

The SWOT, Conclusions and Recommendations sections of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a...[more]

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Community Led Local Development

The Community Led Local Development (CLLD) section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as...[more]

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Wider Socio-Economic Profile

The Wider Socio-Economic section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand...[more]

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Supply Chains

The Supply Chain section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone...[more]

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Environmental Profile

The Environmental Profile section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone...[more]

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Common Grazings

The Common Grazings section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone...[more]

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Trends in Agriculture

The Trends in Agriculture section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand...[more]

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Agricultural Support Payments

The Agricultural Support Payments section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a...[more]

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Agricultural Policy

The Agricultural Policy Development section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a...[more]

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Introduction and Background

The Introduction, Background and Land Capability sections of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as...[more]

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Key Points

The Key Points section of the SRUC report Rural and Agricultural Development: Maximising the potential in the islands of Orkney, Shetland and Outer Hebrides can be downloaded as a stand alone document...[more]


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