Stark warning from Scottish Government on support claims from inactive landowners

NSA Scottish Region was one of four organisations who met on Tuesday with Richard Lochhead of the Scottish Government about seasonal lets under the new CAP rules. The meeting was initiated to inform Mr Lochead of the increasingly serious situation of land owners trying to find loopholes in the new legislation, and let to the Cabinet Secretary making a hard-hitting statement about ‘the days of getting money for nothing are over’.

Mr Lochhead said: “This was a constructive meeting where we talked through some of the potential impacts on seasonal lets of the EU rule change on CAP payments, which must now be based on land area. I was very concerned to hear of circumstances where some people have been trying to find loopholes in the legislation. But let me be clear – under the new CAP, the days of getting money for nothing are over.

“Landowners leaning towards taking land back in hand to claim CAP payments themselves should think carefully about the responsibilities, obligations and potential consequences of doing so. Scotland’s minimum activity rules are among the toughest in Europe and the requirements for making a valid claim are clearly set out in our guidance. For example, environmental audits must be carried out to the specified high standard using approved methodology – there is no easy or cheap way round this or quick fixes.

“People may not be aware of what is at stake – under EU rules, the penalties for deliberately over-claiming or circumventing regulations are severe. Landowners who were not claiming under the old regime need to be aware that unless they can prove they were actively farming in 2013, they will not be eligible for automatic entitlements under the new CAP. And everyone claiming basic payments will need to provide verifiable and robust evidence of appropriate farming activity, that will be carefully scrutinised by my officials.

“In addition, within the flexibility the EU allows us, we can target inspections to ensure the new rules are complied with and I am asking my officials to do this. There will be no hiding from the inspection regime, which this year we expect to start before the end of the SAF window. And, of course, if there is any sign of legislation being breached – even if it is not directly related to CAP – then our inspectors are obliged to act.

“The clock is ticking and so now is the time for landowners and graziers – if they have not already done so – to sit down and agree a workable solution in line with the new CAP regulations.”

George Milne, NSA Scottish Region Development Officer, was involved in a joint response from NSA, Scottish Tenant Farmers Association, NFU Scotland and Scottish Beef Association, welcoming the statement.

In response, the four stakeholder groups said: “This strong and robust statement from the Cabinet Secretary Richard Lochhead sends out an unambiguous message that the Scottish Government will do all within its powers to ensure support payment claims are valid and rules around eligibility have not been manipulated or abused. Direct support payments are intended to support farming activity and this statement sends out a clear signal that Richard Lochhead is prepared to take a hard line with those attempting to exploit loopholes in the legislation. 

“We welcome the government’s announcement that it will be strengthening the inspection regime and officials will be looking for clear proof of activity.  There is a stated intention to rigorously scrutinise the support claims of owners of land who have either increased the area they claim or indeed are claiming for the first time.  Claimants looking to achieve minimum activity levels run the risk of incurring penalties if they are deemed to have deliberately put measures in place simply to circumvent CAP rules.

“This timely statement will allow those contemplating taking land back in hand to reconsider, and decide whether it would not be safer and easier to revert to historic arrangements and allow the grazier to claim both the Basic Payment and the LFASS, bearing in mind the risk they run should they fall foul of an inspection.”