WIREDGOV

The UK Government's proposals for agricultural reform would hit farmers by damaging prices, reducing livestock numbers and cutting their income, according to Rural Affairs Secretary Richard Lochhead.

Independent research published today also shows that the UK's future vision for the Common Agricultural Policy (CAP) would hit Scottish farmers harder than those south of the border.

The researchers' model shows that in Scotland by 2018:

• the beef herd would be 33 per cent smaller than it is now
• sheep numbers would be 28 per cent less than they are now
• sheep meat prices would be 11 per cent lower than currently projected and dairy prices 3.7 per cent lower
• market receipts would be 17 per cent lower than currently projected

Mr Lochhead said:

"This research blows out of the water any pretence that the UK Government's vision for agriculture has the interests of farmers at its heart. Laid bare is the harsh impact their plans would have on farming across the UK and on the devastation they would cause in Scotland in particular.

"If implemented, our farmers would be left staring down the barrel at lower prices, fewer animals and reduced income. The UK vision would lead to significant structural change in Scottish agriculture with knock-on effects for the wider rural economy.

"Scotland has distinct characteristics - its land, climate, population, culture and so on. The plans being peddled by DEFRA, with the Treasury breathing down its neck, ignore these important distinctions. Scotland must be allowed to implement its own vision and needs its own voice in Europe to influence the CAP reforms."

A reformed Common Agricultural Policy (CAP) will be implemented from 2013 onwards. The Treasury and the Department for the Environment, Food and Rural Affairs (DEFRA) have set out 'A Vision for the Common Agriculture Policy'.

The UK vision differs in a number of ways from the Scottish Government's own vision, which takes into account the unique circumstances and characteristics that exist north of the border.

The main differences are:

• The Scottish Government supports the continuation of a direct support system, albeit one that has evolved and adapted
• the UK Government does not
• The Scottish Government believes farming should deliver a number of public benefits, notably the environment, food production and maintaining economic activity and populations in remote areas
• the UK vision has a narrow focus on the environment

Research was carried out by the Food and Agriculture Policy Research Institute (FAPRI) into the impact the UK vision would have and takes into account policy changes likely to take place in the run-up to full implementation of the vision. These include the CAP 'Health Check' reforms, further trade liberalisation following World Trade Organisation (WTO) talks, full decoupling of subsidy payments across the European Union and the phasing out of the Single Farm Payment

The research looks at the impact of the vision on farming across the whole of the UK and also its impact individually in Scotland, England, Wales and Northern Ireland. The research was jointly commissioned by the UK Government and the devolved administrations.

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