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CAP Transfer Rates To Stay At 9.5%

The Cabinet Secretary for the Rural Economy, Fergus Ewing, confirmed at the end of last week that the national budget transfer rate between Pillar 1 (direct) payments and Pillar 2 (rural development) would remain at 9.5%.

Mr Ewing said:

“The Scottish Government has a duty to ensure we strike the right balance across the rural economy portfolio and support for agriculture, environment and wider rural development, promoting the most positive outcomes for our land managers, and farmers and wider rural businesses and communities. I believe the current CAP transfer rate continues to strike that balance.

“Whilst acknowledging the challenging realities of the financial climate in which we operate, this decision will ensure the future of our agriculture sector is safeguarded, and that we retain a vibrant and thriving rural economy.

“However, the refusal of the UK Government to transfer the full CAP convergence monies due to Scotland, alongside the lack of certainty given about the future of payments and the failure of the UK Government to provide guarantees about funding for the SRDP beyond the date of an UK exit from the EU, means that Scottish farmers and rural businesses will not get what rightfully belongs to them.

“Nevertheless, the Scottish Government remains determined to take a strategic approach to future support, ensuring that we maximise EU funds, while continuing support for key government priorities. This decision to retain the current transfer rate between Pillar 1 and Pillar 2 schemes is a key part of this commitment.”


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