Scottish Government biodiversity duty report 2021-2023

6. Agriculture And Rural Economy

6.1 Introductory information

The SG Agriculture and Rural Environment Directorate (ARE) has the mission to work together to enable vibrant and thriving communities and businesses that protect and enhance Scotland’s nature.

This includes:

• a just transition to net zero and to enhance biodiversity,
• thriving and sustainable island and rural communities, agriculture and food and drink sectors and,
• driving forward land reform.

6.2 Actions to protect and enhance biodiversity

ARE delivers policy and support across farming, crofting and land management in Scotland. In particular, the Agri-Environment Climate Scheme (AECS) was launched in 2015 to promote land management practices which protect and enhance Scotland’s natural heritage, improve water quality, manage flood risk and mitigate and adapt to climate change.

AECS remains a key part of support to farmers, crofters, and land managers in delivering nature restoration and addressing the twin challenges of climate change and biodiversity loss. To date £285 million has been committed to over 3,000 businesses.

AECS supports positive management for climate, biodiversity, protected areas, flood alleviation, and water quality to deliver national and international outcomes. In particular, AECS is integral to the delivery of:

• the Scottish Government priority of ‘Opportunity: Building a Fair, Green and Growing Economy’
• several National Outcomes, particularly Environment, Economy, Communities and International.
• the Bute House Agreement
• the Climate Change Plan
• the Scottish Government’s Vision for Agriculture
• Scotland’s Biodiversity Framework 2022-2045, including strategy and supporting delivery plan
• Delivery of the Programme for Government and Bute House Agreement commitment to seek to double the area of land under organic management by 2026.

AECS helps deliver SG’s response to the IPCC’s climate change and land report and the IPBES report on global biodiversity loss by:

• Supporting farmers, crofters and land managers in their vital role delivering statutory climate change targets and tackling the climate emergency and global biodiversity loss.
• Helping farmers embrace low carbon and high nature farming practices to create resilient and profitable farm businesses for the future.
• Support farmers to diversify food systems to enable balanced diets, and food produced from resilient and sustainable low-carbon systems.

6.3 Mainstreaming biodiversity

The Scottish Government published in March 2022 its Vision for Agriculture to become a leader in sustainable and regenerative farming.

Under the Vision, the Scottish Government will deliver nature restoration, alongside high quality food production and climate change mitigation and adaptation. The Cabinet Secretary for Rural Affairs, Land Reform and Islands has also committed to integrate conditionality for half of existing direct support payments.

The Agriculture Reform Programme (ARP) will deliver the Vision for Agriculture with the Agricultural Reform Route Map was published in February 2023 and provides further clarity on how we intend to deliver the ambitions set out in the Vision. The Agriculture and Rural Communities (Scotland) Bill was introduced on 28 September 2023.

The Scottish Government is committed to a service design approach to policy making involving user-centred co-development. The Agriculture Reform Implementation Oversight Board (ARIOB) was established to develop new proposals for sustainable farming support.

We are supporting and encouraging farmers and crofters to learn about how their work impacts on climate and nature, including offering financial support to carry out carbon audits, soil testing and nutrient management planning, establishing a clear baseline and options for action for all who participate.

Regarding the Agri-Environment Climate Scheme (AECS), the Programme for Government 2023-24 published in September 2023 includes a commitment to open the scheme in 2024. The Agricultural Reform Route Map which provides guidance on future support, indicates that the scheme is expected to continue until 2026, with agri-environment support to then be delivered under the new support framework from 2027.

AECS provides support towards a number of management activities which seek to enhance and restore nature. Recognising that when land owners, farmers or crofters take coordinated action this can lead to greater environmental outcomes, the AECS scoring mechanism offers additional points for collaborative applications.

Other support that delivers towards biodiversity outcomes include Greening payments, the Farm Advisory Service and the Integrating Trees Network.

6.4 Nature-based solutions, climate change and biodiversity

The activities supported through AECS options can have simultaneous benefits for nature restoration and both climate change mitigation and adaptation. For example, options include those which can help mitigate the impacts of flooding events. As noted above, AECS helps deliver SG’s response to climate change by supporting farmers, crofters and land managers in their vital role delivering statutory climate change targets and tackling the climate emergency and global biodiversity loss, and through helping farmers embrace low carbon and high nature farming practices to create resilient and profitable farm businesses for the future.

6.5 Public engagement and workforce development

Communications activities including through press releases and social media channels are undertaken by SG Communications team to promote awareness of options that will be available through each round of AECS, and around key moments including when the application window opens, is approaching close, and when the awards are announced.

Information on the scheme is provided through the RPS website, including guidance on the options available and how to apply.

Delivery partners for AECS, NatureScot and RPID, provide staff training to support the assessment of applications, including the intended environmental benefits of the actions proposed, as well as how to conduct inspections and the provision of guidance to prospective applicants.

Consideration is also given to support awareness raising among staff on emerging topics relating to agri-environment.

Staff members regularly take part in site visits both as a team and with external organisations, including environmental NGOs.

Guidance and training opportunities are provided centrally and delivered locally to enable themes to be tailored to the specific priorities of an area. Delivery partners offer specialist training packages e.g. moorland management (NatureScot package) for AECS case officers to attend including RPID staff. Shared training promotes knowledge transfer and application assessment consistency.

6.6 Research and monitoring

6.6.1 Monitoring

As noted above, AECS impacts several national targets, including those related to climate change adaptation and mitigation, and the Scottish Biodiversity Strategy, as well as the Programme for Government commitment to seek to double the amount of land in Scotland farmed organically by 2026. Data is collected on the scheme regarding contracts awarded, claim value, and activities claimed for. This provides detail on the hectares of hedgerows created, for example, and other activities which benefit biodiversity and climate change.

NatureScot published reports in 2021 evaluating and monitoring the impacts of AECS under the 2014-2020 SRDP, which overall found that AECS is a good example of Scottish Government with partners such as NatureScot to deliver outcome in an integrated way to deliver climate, biodiversity, water quality targets. The authors recommend further work is carried out as part of SG’s funded research programme, which officials are currently considering with RESAS colleagues. Officials are also working with NatureScot to enhance monitoring for the pilot projects for an outcomes-based approach to future agri-environment support.

6.6.2 Trends and areas of concern

Due to the nature of the data collected on AECS, which focuses on awards made and activities supported, as well as claim value, this is determined by the quality and quantity of applications received and the available budget. This data does not enable the analysis of trends relating to conservation status, ecological health, water or soil quality, or species abundance.

6.6.3 Data Collection

The sharing of AECS application data is not required to be shared with the National Biodiversity Network or Local Records Centre. Applicants may choose to undertake this independently, however.

6.7 Biodiversity highlights and challenges

6.7.1 Main achievements

AECS remains a key part of support to farmers, crofters, and land managers in delivering nature restoration and addressing the twin challenges of climate change and biodiversity loss. Since 2015, £285 million has been committed to over 3,000 businesses.

For the reporting period 2021-2023, over £79 million has been committed to over 1,900 businesses through contracts which can run for up to five years.

Case studies on specific projects AECS has supported are available on the NatureScot website.

6.7.2 Main challenges in the next three years

The transition to new framework presents the possibility of change in how the scheme is delivered, as it is expected to continue until 2026 ahead of the launch of the Elective tier.

In light of budgetary pressures, the options available under the scheme in previous rounds have necessitated suspension or restriction in some cases. In addition, the annual budget cycle leads to a lack of long-term funding certainty.