THE FUTURE
OF SCOTTISH
AGRICULTURE
A DISCUSSION DOCUMENT
THE FUTURE
OF SCOTTISH
AGRICULTURE
A DISCUSSION DOCUMENT
The Scottish Government, Edinburgh 2015
Foreword
The purpose of this document is to launch
a conversation on these issues with the
public and stakeholders and to encourage
wider dialogue. We will be listening to your
views over the next six months. If you
would like to register your interest in
following this process, or wish to send
us your views, please contact us at
agriculturevision@scotland.gsi.gov.uk.
Richard Lochhead MSP,
Cabinet Secretary for Rural Affairs,
Food and Environment
02 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Agriculture is one of Scotland’s defining
industries. Not only is it the foundation
stone of our thriving food and drink sector,
it strengthens the social fabric of our
rural communities and provides essential
services that all of Scotland benefits from
including flood protection, clean air and
water, and a rich and varied wildlife.
Now that the European CAP reform is over
and the new rules for Scotland defined, it
is time to take stock of the opportunities
and challenges facing our agriculture
industry over the next decade and position
ourselves to take maximum advantage
of these.
This discussion document describes
a vision for agriculture that will lead
the industry to prosper and enhance
its performance in supporting our
environment, communities and wider
economy. It explores the outcomes
needed to support this vision and
proposes next steps towards achieving
these. There are significant synergies and
interactions between the outcomes. There
are also strong links with other Scottish
Government strategies. For example, it is
essential that our vision for agriculture
aligns with the wider vision and objectives
of our Land Use Strategy, with farmers
working with nature to contribute to
Scotland’s prosperity and deliver wider
benefits to society. Our vision for
agriculture must also align with our Food
and Drink Policy and promote greater
integration with our food and drink sector.
© Chris Watt Photography
1. Strong sustainable growth in profits
from agriculture, driven by increased
market-orientation, competitiveness and
resource-efficiency p04
2. Our agriculture industry works as part
of our food and drink sector to increase
profitability and strengthen Scotland’s
reputation as a Land of Food and Drink
p06
3. Agriculture, and the wider agri-food
supply chain, is resilient to shocks and
to future challenges p08
4. High levels of training, education and
skills enable farmers to improve their
profitability and become greener p10
Scotland has a green, innovative and profitable agriculture
industry which is outward-looking and resilient, supporting
our economic growth, environment and communities and
contributing to global food security.
Our Vision
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 03
5. Farmers boost their performance by
embracing innovative techniques and
best practice, underpinned by Scotland’s
world-leading research institutes p12
6. Scotland is a world leader in green
farming p14
7. Agriculture is recognised as an exciting
and rewarding career and there are a
range of routes into the industry for new
entrants p16
8. Agriculture is valued for its contribution
to Scottish society p18
9. Scotland takes a leading role on key
issues affecting agriculture on the UK, EU
and world stage p20
This vision will be supported by the following outcomes:
Outcome:
1. Strong sustainable growth in profits
from agriculture, driven by increased
market-orientation, competitiveness and
resource-efficiency
Future vision
• Agriculture is more profitable and makes
a greater contribution to the Scottish
economy and to global food security by
responding to market demand, producing
food more efficiently and investing in
our natural assets e.g. healthy soils and
pollinators
• The industry responds to declines in the
EU CAP budget by becoming less reliant
on direct payments
• We continue to support the social and
environmental benefits delivered by
farmers in remote and fragile areas
where the scope to become more
productive is limited
Key facts
• Scotland’s agricultural produce has a
strong reputation for quality and there
are notable industry success stories,
such as Scotch Beef, which trades on its
premium brand
• Scotland and the UK compare poorly
with other EU countries on the overall
economic performance of our agriculture
sectors
• CAP payments account for over 70%
of overall net profit from Scottish
agriculture. With CAP support expected
to decline in the long term, the industry
must increase its profitability to remain
competitive
Next steps
• Farmers become more marketoriented,
anticipating demand from
customers and from other parts of the
agri-food supply chain and meeting
consumers’ expectations for quality and
sustainability
• Farmers use energy, feed and fertiliser
efficiently, saving money on inputs while
reducing greenhouse gas emissions and
improving water quality
• Farmers monitor their productivity, using
benchmarking data and other tools to
identify opportunities for improvement
• Use demonstration farms, training,
education and advice to promote green
farming and increased profitability
through innovative techniques and best
practices
• Proportionate and effective regulation
04 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
CASE STUDY: Robert Ramsay.
Arable farmer at Mains of
Kinbelthmont, Angus
Robert Ramsay runs a 700ha arable farm
in Angus. Six years ago, Robert began using
controlled traffic farming techniques to
reduce production costs while improving
soil health and enhancing the farm’s
environmental performance. By using the
same tracks for all agricultural operations,
Robert ensures that 80% of his arable
land is never touched by a tractor wheel,
reducing soil compaction and removing the
need to plough whole areas. As a result,
his crop establishment costs are reduced
by 40% without impacting on yield. This
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 05
resource-efficient practice saves money on
diesel and results in a crop establishment
process which is less dependent on
weather conditions, thus saving time.
This, in turn, generates environmental
benefits including reduced CO2 emissions
and benefits to soils. In Robert’s view, after
controlled traffic farming, “soil is in much
better condition and more alive”. The
farm supplements its income from a raft
of renewable technologies including solar,
wind and biofuel, with plans to expand
solar energy production in the future.
© Crown copyright 2015
06 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Outcome:
2. Our agriculture industry works as
part of our food and drink sector to
increase profitability and strengthen
Scotland’s reputation as a Land of
Food & Drink
Future vision
• Farmers view agriculture as part
of the wider food and drink sector,
sharing in its ambition and success and
strengthening its green credentials and
reputation for quality
• More of our agricultural produce goes on
to be processed in Scotland to retain the
value-added in our economy
• Our food and drink sector sources more
of its raw materials from Scotland, with
farmers anticipating and responding to
market demand
Key facts
• With an annual turnover of around
£14 billion, our food and drink sector is
one of the fastest growing sectors and
makes a substantial contribution to the
Scottish economy
• The sector increased in value by over
20% between 2008 and 2012, compared
to 8% in the rest of the UK
• Agriculture is the foundation stone of
this sector but often does not share in its
success
• Only 45% of our agricultural output
is processed in Scotland, yet our food
and drink sector sources twice as many
inputs from the rest of the UK compared
to Scotland
Next steps
• Farmers work in partnership with
retailers, food service companies,
processors and manufacturers to add
value to, and increase sourcing of,
Scottish raw materials
• Farmers are market-oriented and
forward-looking, adapting their outputs
and production methods to meet demand
from customers and processors
• We capitalise on opportunities to
demonstrate farmers’ green credentials,
e.g. using marketing and branding, in
order to encourage improvements and
strengthen Scotland’s reputation
©Quality Meat Scotland
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 07
©Quality Meat Scotland
Future vision
• Our agriculture industry can withstand
shocks and adapt to future changes such
as reduced CAP support, price volatility,
disease outbreaks and climate change
• The whole agri-food supply chain is fair,
transparent and resilient
• Farmers are paid a fair share of the price
of food
Key facts
• Many farming sectors face challenges
on production costs and severe price
volatility, for example dairy prices have
recently fluctuated dramatically
• Co-operation, both horizontally (between
farmers) and vertically (between farmers,
processors and retailers), increases the
resilience of agri-food supply chains but
is often the exception not the rule
• Of the biggest EU farming countries, the
UK has the lowest share of agricultural
produce from farmer co-operatives
Outcome:
3. Agriculture, and the wider agri-food
supply chain, is resilient to shocks and
to future challenges
Next steps
• Farmers increase their efficiency and
market focus and adopt high standards
in biosecurity, traceability, health and
welfare
• Collaboration between farmers (both
informally and through co-operatives)
to take advantage of economies of scale,
share best practice, market produce and
benefit from a stronger price-negotiating
position
• Collaboration between farmers,
processors and retailers to increase the
resilience of the whole supply chain, with
farmers benefiting from improved price
security and transparency, shared risk
management and feedback from retailers
• Farmers develop new supply chain
models e.g. by diversifying products
and markets and establishing farmers’
markets
• Farmers supplement their income by
diversifying into non-agricultural land
uses, such as agri-tourism and farm
woodlands
08 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
CASE STUDY: Simon Barry.
Chief Executive of Highland Grain
Limited farmers’ co-operative, the
Black Isle
Over the last ten years, Simon Barry
has helped to develop Highland Grain
Limited farmers’ co-operative on the Black
Isle, with both farmers and processors
benefiting. The co-operative now supplies
45,000 tonnes of barley per year to
maltsters and distillers. Highland Grain
Limited helps to protect its members from
price fluctuations around harvest time.
It has also invested in sustainability by
using low-grade barley to power burners
which dry quality grain, whilst saving on
oil costs for its members. Critically, the
co-operative responds to market demand
by focusing on the quality and consistency
of product that processors require. For
example, using a warm storage method,
the co-operative is able to provide grain
to processors six weeks earlier than
normal, adding value for customers and
the co-operative. Highland Grain promotes
transparency throughout the supply chain,
which helps to build relationships and trust
between farmers and processors.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 09
© Crown copyright 2015
10 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers take advantage of a rich array
of training and education opportunities
that increase the profitability of their
businesses as well as helping them
become greener and improving health
and safety
• Farmers value training and education as
an investment and recognise the impact
of continuous professional development
on their business
Key facts
• Training, education and skills are
recognised as important drivers of
best practice and performance: not
only practical and technical skills but
also business management skills. The
latter are increasingly important given
the range of complex factors involved
in running a farm business e.g. in
responding to market demand and
engaging with the wider supply chain
Outcome:
4. High levels of training, education and
skills enable farmers to improve their
profitability and become greener
• In Scotland, 27% of farmers have formal
agricultural training
• In 2014-15, 76 learners completed a
Modern Apprenticeship in agriculture
• 380 learners, mainly farmers and
agricultural businesses, have completed
Scottish Enterprise’s Rural Leadership
Programme since 2006
Next steps
• Promote training and education as an
investment for farmers that will recoup
rewards
• Ensure that a wide range of
learning opportunities are available
throughout Scotland: including Modern
Apprenticeships, the Rural Leadership
Programme and formal qualifications,
as well as one-off training events,
demonstration farms, mentoring and
on-farm advice on best practice and
green farming
• Identify the skills needs of farmers and
plan and promote learning activities to
address these
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 11
© David Moses Photographer
12 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers adopt innovative and other best
practices which are greener and improve
the profitability of their businesses
• Effective exchange of knowledge
between farmers and researchers makes
sure research is focused on industry
priorities and farmers can access findings
Key facts
• Scotland’s research institutes, supported
by £50 million annual investment from
the Scottish Government, are recognised
as among the best in the world. They
provide an applied science knowledge
base which addresses not only the
immediate technical challenges of our
agriculture industry but also those of
society and the environment
• Collaboration between government,
industry and research providers has led
to notable successes, such as Scotland’s
bovine tuberculosis-free status and
our reputation as a world leader in the
production of high-quality seed potatoes
Outcome:
5. Farmers boost their performance by
embracing innovative techniques and
best practice, underpinned by Scotland’s
world-leading research institutes
• More widespread adoption by farmers
of innovative technologies and practices
would further improve the industry’s
performance
Next steps
• Promote active exchange of knowledge
through our Research Programme to
make sure farm businesses, communities,
the public sector and the Scottish
economy can fully benefit from the
world-leading research undertaken in
Scotland
• Use demonstration farms, training,
education and advice to facilitate
the sharing of innovative and best
practices, not only between the research
community and farmers but across
collaborating networks of farms
• Support knowledge transfer, innovation
and efficiency measures through the
Monitor Farm Network, Farm Advisory
Service, European Innovation Programme
and Scottish Rural Development
Programme, including a new Beef
Efficiency Scheme
© Crown copyright 2015
CASE STUDY: Jim Shanks.
Dairy farmer at Standhill Farm,
Roxburghshire
Jim Shanks runs a 205ha dairy farm with
220 cows in the Scottish Borders. Around
four years ago, he began to explore
innovative ways to adapt his business
to boost its profitability. His journey to
seek out new opportunities took him to
Germany, where he discovered the multiple
benefits that could be generated from
using an anaerobic bio-digester. Since its
installation in 2014, the bio-digester at
Standhill produces natural methane and
CO2 through the anaerobic digestion of
slurry and silage. The methane powers
a combustion burner and generates
electricity, heating and powering the farm,
including the farmhouse. Surplus electricity
is fed back into the National Grid, receiving
a feed-in tariff. Surplus heat is used to
dry biomass wood chips, under contract.
Standhill receives a Renewables Heat
Incentive payment for using a renewable
energy source as part of this process. As a
next step, Jim plans to install glass houses
which will use the surplus heat, electricity
and CO2 to help grow tomatoes.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 13
© Crown copyright 2015
14 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers work with nature, protecting
and enhancing the benefits it provides
(known as natural capital and ecosystem
services) and embracing their role
as custodians of much of our natural
environment
• Scotland has a low-carbon agriculture
industry, we have achieved good water
quality in water bodies affected by
diffuse pollution and halted the loss of
farmland biodiversity
• As a result, we have strengthened the
reputation of our food and drink sector
and improved the long-term productivity
of our farmland through sustainable
management of soils, water and
pollinators. Farmers also benefit from
efficient use of energy, feed and fertiliser
• Farmers combine food production
with other land uses including farm
woodlands, renewable energy, natural
flood risk management, tourism and
recreation to make best use of their land
and create multiple benefits
Key facts
• A range of indicators of farmland
biodiversity are declining. Water quality
in around 400 water bodies is adversely
affected by rural diffuse pollution.
Around a fifth of Scottish greenhouse gas
emissions come from agriculture and the
related land use sector
Outcome:
6. Scotland is a world leader in
green farming
• As custodians of around 80% of
Scotland’s land area, farmers have a
key role to play in addressing these
challenges
• Farm productivity benefits from a
healthy environment, including
well-managed soils and rich biodiversity
e.g. pollinators
Next steps
• Encourage a step-change in agriculture,
where farmers combine environmentally
and commercially successful management
in the running of their businesses.
Support this through advice, training,
education and demonstration farms
• Use CAP Pillar 1 and 2 incentives to
recognise and reward the delivery of
environmental benefits and integrated
land use
• Make sure regulation sets an effective
standard for environmental performance
• Drive further improvements in the green
credentials of our food and farming
industries e.g. using marketing tools
• Agree a refreshed action plan for organic
farming
©Lorne Gill/SNH
CASE STUDY: Shirley and
Michael Clarke.
Beef and sheep farmers at
Williamwood Farm near Lockerbie
Shirley and Michael Clarke successfully
integrate environmental and commercial
management on a 115ha beef and sheep
enterprise at Williamwood Farm. Less
productive areas of the farm are used
to create areas for biodiversity, funded
through agri-environment payments
under the Scottish Rural Development
Programme, including buffer strips, creation
of wetland habitats, management of
hedgerows and wild flowering meadows.
Since 2008, the farm has also diversified
into agri-tourism, converting four cottages
into four star B&B facilities and offering
a wide range of activities including bird
watching, marked access paths and equine
trails, as well as hosting wildlife education
groups. These agri-tourism activities are
enhanced by the environmental features on
the farm. All elements of the farm business
– the commercial farming, environmental
management and agri-tourism – support
each other to ensure the farm is
economically viable. This means that land
is used optimally to produce multiple
benefits and income streams.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 15
© Crown copyright 2015
16 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Agriculture is widely recognised as an
attractive career which offers a high
quality of life
• Men and women of all ages are able to
enter the industry, introducing fresh
ideas, skills and investment to boost its
economic vitality and secure its longterm
future
Key facts
• Farming has an aging demographic, with
only 12% of farm occupiers under 45 and
38% over 65
• New entrants have faced a range of
challenges. For example, Scotland has
one of the lowest proportions of rented
farmland anywhere in Europe, declining
from 40% to 23% over the last 30 years
Outcome:
7. Agriculture is recognised as an
exciting and rewarding career and there
are a range of routes into the industry
for new entrants
Next steps
• Promote agriculture as an exciting career
and inform young people on how to get
started in the industry
• Identify and address barriers to entry.
The design of the 2015-20 CAP has
improved access to support for new
entrants, but availability of tenanted
land remains a significant challenge.
The Agricultural Holdings Legislation
Review has delivered a range of
recommendations, such as flexible
tenancies, aiming to address this
• Provide training, mentoring and advice to
ensure new entrants have the skills and
knowledge needed to develop successful
businesses, and promote opportunities
for Modern Apprenticeships
• Provide more opportunities for people
wishing to farm by building on the
success of the Forestry Commission
Starter Farms Programme
• Encourage better succession planning,
to make sure farmers can retire when
they wish and create opportunities for
generational renewal
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 17
© David N Anderson
Future vision
• We celebrate and strengthen agriculture’s
contribution to the social fabric of rural
Scotland
• We build on the services agriculture
provides to wider society, in both rural
and urban areas, through opportunities
for education, recreation and access to
the countryside
• An increasing proportion of Scots take an
active interest in the origin and quality
of their food
Key facts
• Agriculture supports 1 in 6 jobs in
remote rural areas (with forestry and
fishing), annually purchasing £1 billion in
goods and services from other parts of
the Scottish economy and underpinning
key growth industries such as food and
drink, energy and tourism
• Agriculture and crofting help to sustain
populations and amenities in fragile rural
communities
Outcome:
8. Agriculture is valued for its
contribution to Scottish society
• Farming and the landscapes it creates are
an important part of Scotland’s national
identify and cultural heritage
• Many Scots are disconnected from
where their food comes from or how it is
produced, contributing to poor diet and
high levels of wastage
Next steps
• More farmers take part in rural
initiatives, such as the Scottish Rural
Parliament
• We continue to support farming and
crofting in fragile areas and their roles in
sustaining rural communities
• Farmers are actively involved in publicfacing
educational activity about food
and agriculture e.g. through open-door
events and engaging with schools
• We continue to support opportunities for
farm diversification and public access
under the Scottish Rural Development
Programme
18 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
©Lorne Gill/SNH
CASE STUDY: Lachlan Maclean.
Sheep farmer at Knock Farm, Mull
Lachlan Maclean and his family run an
extensive sheep and beef suckler farm
with around 1800 ewes and 100 cows on
3,000ha of hill ground at Knock Farm on
Mull. This fourth-generation farm provides
employment for two generations of his
family and an additional staff member.
Through extensive grazing management,
Lachlan views his role not only as a
producer of livestock but as a custodian
of his local environment and landscapes.
The scenery and wildlife supported by
traditional farming in the area enables
around 12 wildlife tour companies to
operate, attracting tourism, investment and
spending to the local community. Lachlan’s
business also supports his community
by purchasing goods and services from
contractors, hauliers, garages and shops,
helping to sustain the local economy.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 19
Image courtesy of Jonathan Hall
Future vision
• Scotland speaks with its own distinct
voice, has a strong international
reputation and leads by example
• With clear and credible priorities,
Scotland exercises influence on the EU
and international stage on matters of
importance to Scotland
Key facts
• The Scottish Government has an ambition
to improve the formal processes within
the UK which recognise and support
the active participation of Scotland in
international fora
• Working with our partners, we promote
Scotland’s interests within the EU
through the Brussels Office and through
regular attendance by a Scottish Minister
at the Agriculture and Fisheries Council
as part of a UK Delegation
Outcome:
9. Scotland takes a leading role on key
issues affecting agriculture on the UK,
EU and world stages
Next steps
• Delivering on our vision for the Future
of Scottish Agriculture will strengthen
the story we have to tell and the
credibility with which we engage on an
international stage
• Championing Scotland’s voice within
the EU, actively participating on EU
reform and securing an EU agriculture
policy that attracts investment, supports
innovation and delivers our objectives
for rural Scotland
• Strengthening partnerships within
Europe and the wider world to deliver
mutually beneficial outcomes, policies
and programmes
• Continuing to make a positive case about
the benefits to Scotland and the rest of
the UK from EU membership
• Delivering an improved formal process
for influencing within the EU and
internationally as part of the Smith
Commission implementation
20 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
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PPDAS49642 (06/15)
OF SCOTTISH
AGRICULTURE
A DISCUSSION DOCUMENT
THE FUTURE
OF SCOTTISH
AGRICULTURE
A DISCUSSION DOCUMENT
The Scottish Government, Edinburgh 2015
Foreword
The purpose of this document is to launch
a conversation on these issues with the
public and stakeholders and to encourage
wider dialogue. We will be listening to your
views over the next six months. If you
would like to register your interest in
following this process, or wish to send
us your views, please contact us at
agriculturevision@scotland.gsi.gov.uk.
Richard Lochhead MSP,
Cabinet Secretary for Rural Affairs,
Food and Environment
02 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Agriculture is one of Scotland’s defining
industries. Not only is it the foundation
stone of our thriving food and drink sector,
it strengthens the social fabric of our
rural communities and provides essential
services that all of Scotland benefits from
including flood protection, clean air and
water, and a rich and varied wildlife.
Now that the European CAP reform is over
and the new rules for Scotland defined, it
is time to take stock of the opportunities
and challenges facing our agriculture
industry over the next decade and position
ourselves to take maximum advantage
of these.
This discussion document describes
a vision for agriculture that will lead
the industry to prosper and enhance
its performance in supporting our
environment, communities and wider
economy. It explores the outcomes
needed to support this vision and
proposes next steps towards achieving
these. There are significant synergies and
interactions between the outcomes. There
are also strong links with other Scottish
Government strategies. For example, it is
essential that our vision for agriculture
aligns with the wider vision and objectives
of our Land Use Strategy, with farmers
working with nature to contribute to
Scotland’s prosperity and deliver wider
benefits to society. Our vision for
agriculture must also align with our Food
and Drink Policy and promote greater
integration with our food and drink sector.
© Chris Watt Photography
1. Strong sustainable growth in profits
from agriculture, driven by increased
market-orientation, competitiveness and
resource-efficiency p04
2. Our agriculture industry works as part
of our food and drink sector to increase
profitability and strengthen Scotland’s
reputation as a Land of Food and Drink
p06
3. Agriculture, and the wider agri-food
supply chain, is resilient to shocks and
to future challenges p08
4. High levels of training, education and
skills enable farmers to improve their
profitability and become greener p10
Scotland has a green, innovative and profitable agriculture
industry which is outward-looking and resilient, supporting
our economic growth, environment and communities and
contributing to global food security.
Our Vision
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 03
5. Farmers boost their performance by
embracing innovative techniques and
best practice, underpinned by Scotland’s
world-leading research institutes p12
6. Scotland is a world leader in green
farming p14
7. Agriculture is recognised as an exciting
and rewarding career and there are a
range of routes into the industry for new
entrants p16
8. Agriculture is valued for its contribution
to Scottish society p18
9. Scotland takes a leading role on key
issues affecting agriculture on the UK, EU
and world stage p20
This vision will be supported by the following outcomes:
Outcome:
1. Strong sustainable growth in profits
from agriculture, driven by increased
market-orientation, competitiveness and
resource-efficiency
Future vision
• Agriculture is more profitable and makes
a greater contribution to the Scottish
economy and to global food security by
responding to market demand, producing
food more efficiently and investing in
our natural assets e.g. healthy soils and
pollinators
• The industry responds to declines in the
EU CAP budget by becoming less reliant
on direct payments
• We continue to support the social and
environmental benefits delivered by
farmers in remote and fragile areas
where the scope to become more
productive is limited
Key facts
• Scotland’s agricultural produce has a
strong reputation for quality and there
are notable industry success stories,
such as Scotch Beef, which trades on its
premium brand
• Scotland and the UK compare poorly
with other EU countries on the overall
economic performance of our agriculture
sectors
• CAP payments account for over 70%
of overall net profit from Scottish
agriculture. With CAP support expected
to decline in the long term, the industry
must increase its profitability to remain
competitive
Next steps
• Farmers become more marketoriented,
anticipating demand from
customers and from other parts of the
agri-food supply chain and meeting
consumers’ expectations for quality and
sustainability
• Farmers use energy, feed and fertiliser
efficiently, saving money on inputs while
reducing greenhouse gas emissions and
improving water quality
• Farmers monitor their productivity, using
benchmarking data and other tools to
identify opportunities for improvement
• Use demonstration farms, training,
education and advice to promote green
farming and increased profitability
through innovative techniques and best
practices
• Proportionate and effective regulation
04 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
CASE STUDY: Robert Ramsay.
Arable farmer at Mains of
Kinbelthmont, Angus
Robert Ramsay runs a 700ha arable farm
in Angus. Six years ago, Robert began using
controlled traffic farming techniques to
reduce production costs while improving
soil health and enhancing the farm’s
environmental performance. By using the
same tracks for all agricultural operations,
Robert ensures that 80% of his arable
land is never touched by a tractor wheel,
reducing soil compaction and removing the
need to plough whole areas. As a result,
his crop establishment costs are reduced
by 40% without impacting on yield. This
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 05
resource-efficient practice saves money on
diesel and results in a crop establishment
process which is less dependent on
weather conditions, thus saving time.
This, in turn, generates environmental
benefits including reduced CO2 emissions
and benefits to soils. In Robert’s view, after
controlled traffic farming, “soil is in much
better condition and more alive”. The
farm supplements its income from a raft
of renewable technologies including solar,
wind and biofuel, with plans to expand
solar energy production in the future.
© Crown copyright 2015
06 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Outcome:
2. Our agriculture industry works as
part of our food and drink sector to
increase profitability and strengthen
Scotland’s reputation as a Land of
Food & Drink
Future vision
• Farmers view agriculture as part
of the wider food and drink sector,
sharing in its ambition and success and
strengthening its green credentials and
reputation for quality
• More of our agricultural produce goes on
to be processed in Scotland to retain the
value-added in our economy
• Our food and drink sector sources more
of its raw materials from Scotland, with
farmers anticipating and responding to
market demand
Key facts
• With an annual turnover of around
£14 billion, our food and drink sector is
one of the fastest growing sectors and
makes a substantial contribution to the
Scottish economy
• The sector increased in value by over
20% between 2008 and 2012, compared
to 8% in the rest of the UK
• Agriculture is the foundation stone of
this sector but often does not share in its
success
• Only 45% of our agricultural output
is processed in Scotland, yet our food
and drink sector sources twice as many
inputs from the rest of the UK compared
to Scotland
Next steps
• Farmers work in partnership with
retailers, food service companies,
processors and manufacturers to add
value to, and increase sourcing of,
Scottish raw materials
• Farmers are market-oriented and
forward-looking, adapting their outputs
and production methods to meet demand
from customers and processors
• We capitalise on opportunities to
demonstrate farmers’ green credentials,
e.g. using marketing and branding, in
order to encourage improvements and
strengthen Scotland’s reputation
©Quality Meat Scotland
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 07
©Quality Meat Scotland
Future vision
• Our agriculture industry can withstand
shocks and adapt to future changes such
as reduced CAP support, price volatility,
disease outbreaks and climate change
• The whole agri-food supply chain is fair,
transparent and resilient
• Farmers are paid a fair share of the price
of food
Key facts
• Many farming sectors face challenges
on production costs and severe price
volatility, for example dairy prices have
recently fluctuated dramatically
• Co-operation, both horizontally (between
farmers) and vertically (between farmers,
processors and retailers), increases the
resilience of agri-food supply chains but
is often the exception not the rule
• Of the biggest EU farming countries, the
UK has the lowest share of agricultural
produce from farmer co-operatives
Outcome:
3. Agriculture, and the wider agri-food
supply chain, is resilient to shocks and
to future challenges
Next steps
• Farmers increase their efficiency and
market focus and adopt high standards
in biosecurity, traceability, health and
welfare
• Collaboration between farmers (both
informally and through co-operatives)
to take advantage of economies of scale,
share best practice, market produce and
benefit from a stronger price-negotiating
position
• Collaboration between farmers,
processors and retailers to increase the
resilience of the whole supply chain, with
farmers benefiting from improved price
security and transparency, shared risk
management and feedback from retailers
• Farmers develop new supply chain
models e.g. by diversifying products
and markets and establishing farmers’
markets
• Farmers supplement their income by
diversifying into non-agricultural land
uses, such as agri-tourism and farm
woodlands
08 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
CASE STUDY: Simon Barry.
Chief Executive of Highland Grain
Limited farmers’ co-operative, the
Black Isle
Over the last ten years, Simon Barry
has helped to develop Highland Grain
Limited farmers’ co-operative on the Black
Isle, with both farmers and processors
benefiting. The co-operative now supplies
45,000 tonnes of barley per year to
maltsters and distillers. Highland Grain
Limited helps to protect its members from
price fluctuations around harvest time.
It has also invested in sustainability by
using low-grade barley to power burners
which dry quality grain, whilst saving on
oil costs for its members. Critically, the
co-operative responds to market demand
by focusing on the quality and consistency
of product that processors require. For
example, using a warm storage method,
the co-operative is able to provide grain
to processors six weeks earlier than
normal, adding value for customers and
the co-operative. Highland Grain promotes
transparency throughout the supply chain,
which helps to build relationships and trust
between farmers and processors.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 09
© Crown copyright 2015
10 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers take advantage of a rich array
of training and education opportunities
that increase the profitability of their
businesses as well as helping them
become greener and improving health
and safety
• Farmers value training and education as
an investment and recognise the impact
of continuous professional development
on their business
Key facts
• Training, education and skills are
recognised as important drivers of
best practice and performance: not
only practical and technical skills but
also business management skills. The
latter are increasingly important given
the range of complex factors involved
in running a farm business e.g. in
responding to market demand and
engaging with the wider supply chain
Outcome:
4. High levels of training, education and
skills enable farmers to improve their
profitability and become greener
• In Scotland, 27% of farmers have formal
agricultural training
• In 2014-15, 76 learners completed a
Modern Apprenticeship in agriculture
• 380 learners, mainly farmers and
agricultural businesses, have completed
Scottish Enterprise’s Rural Leadership
Programme since 2006
Next steps
• Promote training and education as an
investment for farmers that will recoup
rewards
• Ensure that a wide range of
learning opportunities are available
throughout Scotland: including Modern
Apprenticeships, the Rural Leadership
Programme and formal qualifications,
as well as one-off training events,
demonstration farms, mentoring and
on-farm advice on best practice and
green farming
• Identify the skills needs of farmers and
plan and promote learning activities to
address these
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 11
© David Moses Photographer
12 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers adopt innovative and other best
practices which are greener and improve
the profitability of their businesses
• Effective exchange of knowledge
between farmers and researchers makes
sure research is focused on industry
priorities and farmers can access findings
Key facts
• Scotland’s research institutes, supported
by £50 million annual investment from
the Scottish Government, are recognised
as among the best in the world. They
provide an applied science knowledge
base which addresses not only the
immediate technical challenges of our
agriculture industry but also those of
society and the environment
• Collaboration between government,
industry and research providers has led
to notable successes, such as Scotland’s
bovine tuberculosis-free status and
our reputation as a world leader in the
production of high-quality seed potatoes
Outcome:
5. Farmers boost their performance by
embracing innovative techniques and
best practice, underpinned by Scotland’s
world-leading research institutes
• More widespread adoption by farmers
of innovative technologies and practices
would further improve the industry’s
performance
Next steps
• Promote active exchange of knowledge
through our Research Programme to
make sure farm businesses, communities,
the public sector and the Scottish
economy can fully benefit from the
world-leading research undertaken in
Scotland
• Use demonstration farms, training,
education and advice to facilitate
the sharing of innovative and best
practices, not only between the research
community and farmers but across
collaborating networks of farms
• Support knowledge transfer, innovation
and efficiency measures through the
Monitor Farm Network, Farm Advisory
Service, European Innovation Programme
and Scottish Rural Development
Programme, including a new Beef
Efficiency Scheme
© Crown copyright 2015
CASE STUDY: Jim Shanks.
Dairy farmer at Standhill Farm,
Roxburghshire
Jim Shanks runs a 205ha dairy farm with
220 cows in the Scottish Borders. Around
four years ago, he began to explore
innovative ways to adapt his business
to boost its profitability. His journey to
seek out new opportunities took him to
Germany, where he discovered the multiple
benefits that could be generated from
using an anaerobic bio-digester. Since its
installation in 2014, the bio-digester at
Standhill produces natural methane and
CO2 through the anaerobic digestion of
slurry and silage. The methane powers
a combustion burner and generates
electricity, heating and powering the farm,
including the farmhouse. Surplus electricity
is fed back into the National Grid, receiving
a feed-in tariff. Surplus heat is used to
dry biomass wood chips, under contract.
Standhill receives a Renewables Heat
Incentive payment for using a renewable
energy source as part of this process. As a
next step, Jim plans to install glass houses
which will use the surplus heat, electricity
and CO2 to help grow tomatoes.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 13
© Crown copyright 2015
14 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Farmers work with nature, protecting
and enhancing the benefits it provides
(known as natural capital and ecosystem
services) and embracing their role
as custodians of much of our natural
environment
• Scotland has a low-carbon agriculture
industry, we have achieved good water
quality in water bodies affected by
diffuse pollution and halted the loss of
farmland biodiversity
• As a result, we have strengthened the
reputation of our food and drink sector
and improved the long-term productivity
of our farmland through sustainable
management of soils, water and
pollinators. Farmers also benefit from
efficient use of energy, feed and fertiliser
• Farmers combine food production
with other land uses including farm
woodlands, renewable energy, natural
flood risk management, tourism and
recreation to make best use of their land
and create multiple benefits
Key facts
• A range of indicators of farmland
biodiversity are declining. Water quality
in around 400 water bodies is adversely
affected by rural diffuse pollution.
Around a fifth of Scottish greenhouse gas
emissions come from agriculture and the
related land use sector
Outcome:
6. Scotland is a world leader in
green farming
• As custodians of around 80% of
Scotland’s land area, farmers have a
key role to play in addressing these
challenges
• Farm productivity benefits from a
healthy environment, including
well-managed soils and rich biodiversity
e.g. pollinators
Next steps
• Encourage a step-change in agriculture,
where farmers combine environmentally
and commercially successful management
in the running of their businesses.
Support this through advice, training,
education and demonstration farms
• Use CAP Pillar 1 and 2 incentives to
recognise and reward the delivery of
environmental benefits and integrated
land use
• Make sure regulation sets an effective
standard for environmental performance
• Drive further improvements in the green
credentials of our food and farming
industries e.g. using marketing tools
• Agree a refreshed action plan for organic
farming
©Lorne Gill/SNH
CASE STUDY: Shirley and
Michael Clarke.
Beef and sheep farmers at
Williamwood Farm near Lockerbie
Shirley and Michael Clarke successfully
integrate environmental and commercial
management on a 115ha beef and sheep
enterprise at Williamwood Farm. Less
productive areas of the farm are used
to create areas for biodiversity, funded
through agri-environment payments
under the Scottish Rural Development
Programme, including buffer strips, creation
of wetland habitats, management of
hedgerows and wild flowering meadows.
Since 2008, the farm has also diversified
into agri-tourism, converting four cottages
into four star B&B facilities and offering
a wide range of activities including bird
watching, marked access paths and equine
trails, as well as hosting wildlife education
groups. These agri-tourism activities are
enhanced by the environmental features on
the farm. All elements of the farm business
– the commercial farming, environmental
management and agri-tourism – support
each other to ensure the farm is
economically viable. This means that land
is used optimally to produce multiple
benefits and income streams.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 15
© Crown copyright 2015
16 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
Future vision
• Agriculture is widely recognised as an
attractive career which offers a high
quality of life
• Men and women of all ages are able to
enter the industry, introducing fresh
ideas, skills and investment to boost its
economic vitality and secure its longterm
future
Key facts
• Farming has an aging demographic, with
only 12% of farm occupiers under 45 and
38% over 65
• New entrants have faced a range of
challenges. For example, Scotland has
one of the lowest proportions of rented
farmland anywhere in Europe, declining
from 40% to 23% over the last 30 years
Outcome:
7. Agriculture is recognised as an
exciting and rewarding career and there
are a range of routes into the industry
for new entrants
Next steps
• Promote agriculture as an exciting career
and inform young people on how to get
started in the industry
• Identify and address barriers to entry.
The design of the 2015-20 CAP has
improved access to support for new
entrants, but availability of tenanted
land remains a significant challenge.
The Agricultural Holdings Legislation
Review has delivered a range of
recommendations, such as flexible
tenancies, aiming to address this
• Provide training, mentoring and advice to
ensure new entrants have the skills and
knowledge needed to develop successful
businesses, and promote opportunities
for Modern Apprenticeships
• Provide more opportunities for people
wishing to farm by building on the
success of the Forestry Commission
Starter Farms Programme
• Encourage better succession planning,
to make sure farmers can retire when
they wish and create opportunities for
generational renewal
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 17
© David N Anderson
Future vision
• We celebrate and strengthen agriculture’s
contribution to the social fabric of rural
Scotland
• We build on the services agriculture
provides to wider society, in both rural
and urban areas, through opportunities
for education, recreation and access to
the countryside
• An increasing proportion of Scots take an
active interest in the origin and quality
of their food
Key facts
• Agriculture supports 1 in 6 jobs in
remote rural areas (with forestry and
fishing), annually purchasing £1 billion in
goods and services from other parts of
the Scottish economy and underpinning
key growth industries such as food and
drink, energy and tourism
• Agriculture and crofting help to sustain
populations and amenities in fragile rural
communities
Outcome:
8. Agriculture is valued for its
contribution to Scottish society
• Farming and the landscapes it creates are
an important part of Scotland’s national
identify and cultural heritage
• Many Scots are disconnected from
where their food comes from or how it is
produced, contributing to poor diet and
high levels of wastage
Next steps
• More farmers take part in rural
initiatives, such as the Scottish Rural
Parliament
• We continue to support farming and
crofting in fragile areas and their roles in
sustaining rural communities
• Farmers are actively involved in publicfacing
educational activity about food
and agriculture e.g. through open-door
events and engaging with schools
• We continue to support opportunities for
farm diversification and public access
under the Scottish Rural Development
Programme
18 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
©Lorne Gill/SNH
CASE STUDY: Lachlan Maclean.
Sheep farmer at Knock Farm, Mull
Lachlan Maclean and his family run an
extensive sheep and beef suckler farm
with around 1800 ewes and 100 cows on
3,000ha of hill ground at Knock Farm on
Mull. This fourth-generation farm provides
employment for two generations of his
family and an additional staff member.
Through extensive grazing management,
Lachlan views his role not only as a
producer of livestock but as a custodian
of his local environment and landscapes.
The scenery and wildlife supported by
traditional farming in the area enables
around 12 wildlife tour companies to
operate, attracting tourism, investment and
spending to the local community. Lachlan’s
business also supports his community
by purchasing goods and services from
contractors, hauliers, garages and shops,
helping to sustain the local economy.
THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT 19
Image courtesy of Jonathan Hall
Future vision
• Scotland speaks with its own distinct
voice, has a strong international
reputation and leads by example
• With clear and credible priorities,
Scotland exercises influence on the EU
and international stage on matters of
importance to Scotland
Key facts
• The Scottish Government has an ambition
to improve the formal processes within
the UK which recognise and support
the active participation of Scotland in
international fora
• Working with our partners, we promote
Scotland’s interests within the EU
through the Brussels Office and through
regular attendance by a Scottish Minister
at the Agriculture and Fisheries Council
as part of a UK Delegation
Outcome:
9. Scotland takes a leading role on key
issues affecting agriculture on the UK,
EU and world stages
Next steps
• Delivering on our vision for the Future
of Scottish Agriculture will strengthen
the story we have to tell and the
credibility with which we engage on an
international stage
• Championing Scotland’s voice within
the EU, actively participating on EU
reform and securing an EU agriculture
policy that attracts investment, supports
innovation and delivers our objectives
for rural Scotland
• Strengthening partnerships within
Europe and the wider world to deliver
mutually beneficial outcomes, policies
and programmes
• Continuing to make a positive case about
the benefits to Scotland and the rest of
the UK from EU membership
• Delivering an improved formal process
for influencing within the EU and
internationally as part of the Smith
Commission implementation
20 THE FUTURE OF SCOTTISH AGRICULTURE: A DISCUSSION DOCUMENT
© Crown copyright 2015
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