Less Favoured Area (LFA) farmers and crofters - sustainable and regenerative agricultural practices: report

1.0 Introduction

The Scottish Government has commissioned this research to assess the opportunities and motivations for the uptake of specific sustainable and regenerative agricultural practices amongst farmers and crofters in Less Favoured Areas (LFA). The research is expected to inform Scottish Government’s design of a new support scheme in replacement of programmes implemented under the European Union’s Common Agricultural Policy.

Scotland aims to become a global leader in sustainable and regenerative agriculture by transforming the support to farming and food production (Our vision for Scottish Agriculture, 2022). For these purposes, regenerative agricultural practices can be defined as “a collection of farming practices with a focus on renewing and conserving soils, landscapes and ecosystems” (Agricultural Reform Route Map 2024). No ‘one size fits’ all approach is offered; instead, it is recognised that each farm and croft will differ in its abilities to pursue these approaches. A case-study based approach, which recognises the need for flexibility to adapt farming practices to the local conditions, is therefore adopted in this research.

The Scottish Government commits to “…support and work with farmers and crofters to meet more of our own food needs sustainably and to farm and croft with nature” (Agricultural Reform Route Map, 2024). In addition to regenerative farming and high-quality food production, the Scottish Government aims for nature restoration, climate mitigation and adaptation, and enabling rural communities to thrive. The basis to achieve these objectives are set out in the Agriculture and Rural Communities (Scotland) Act (July 2024). Changes to support schemes provide the foundation for achieving these objectives beyond 2025.

Four specific groups of farming practices, relating to key outcomes for Scottish agriculture, were pre-identified (by the Scottish Government) for assessment:

• Carbon emissions reduction measures (including carbon audits, soil testing, and livestock efficiency measures)
• Peatland restoration
• Tree planting and woodland natural regeneration
• Biodiversity measures (including permanent and temporary management practices)

Uptake of these practices were researched, specifically:

• The differing motivations of LFA farmers and crofters for the uptake of sustainable and regenerative agricultural practices, and how they diverge from established typologies of adoption factors;
• The barriers farmers and crofters face to adopt these practices (including land tenure issues), and what opportunities are currently available to them;
• What is considered the current best practices of LFA farmers and crofters when implementing sustainable and regenerative agricultural practices for the four outcomes; and
• What future opportunities or incentives (financial, administrative, other) would be needed to encourage uptake of different types of (existing or novel) sustainable and regenerative practices.

The research team conducted short workshops with five scientists with expertise relevant to the four outcome areas (carbon emissions, peatland restoration, woodland regeneration, biodiversity) to understand from a research perspective which land management practices are considered sustainable and regenerative in Less Favoured Areas (figure 1). Scientists were asked to identify individual practices for each of these 4 outcome areas and considering land capability classes, LCA 4, 5 and 6. In addition synergies between practices which in combination could deliver more than one outcome area were identified for this combination of land capability classes.

The researchers then conducted interviews with stakeholder organisations (‘Key informants’ - 4) and ‘Opinion Leaders’ (13), i.e. farmers and crofters who had adopted the identified practices, to assess the motivations for and barriers to the uptake of alternative farming practices, and how these have been overcome. Next, the team conducted workshops (3) with LFA land managers (34) in different regions of Scotland (Southwest, West Coast, Northeast) during which facilitated discussions focused on understanding of sustainable and regenerative practices, the motivations, opportunities and barriers for uptake, and identifying support mechanisms (existing and hypothetical). Finally, the team conducted online workshops (4) in collaboration with four stakeholder organisations (Scottish Crofting Federation, Soil Association Scotland, Nature-Friendly Farming Network (Scotland), National Farmers Union Scotland). In total, c. 72 participants were asked to work through hypothetical scenarios of incentives being awarded for different types of farming practices presented via an online survey (see Appendix F). The online survey served as introduction for discussing support schemes characteristics. For further details of the methodology, see Appendix A.1.

1.1 About Less Favoured Areas

Approximately 85% of Scotland’s farmed land is characterised as ‘Less Favoured Areas’ (LFA). The definition of LFAs is based on soils and productivity when compared with areas that are most productive and have better economic development indicators; LFAs are therefore considered to be disadvantaged if 50% or more of the land cannot produce as much output as productive land, i.e. the land is only able to support low intensity farming (Scottish Government, 2016). Considered to be naturally disadvantaged areas, holdings in the LFAs are eligible for income support payments aimed at allowing farmers and crofters to run viable businesses, to avoid land abandonment, ensuring continued agricultural land use and promoting sustainable farming systems. According to the Scottish farm business income (annual estimates 2022-2023), many livestock farms would make a loss without support payments (e.g. Basic Payment, Voluntary Coupled Support, Less Favoured Areas Support Scheme or ‘LFASS’).

The Scottish Government aims to achieve multiple outcomes in the agricultural sector, including maintaining holding income, regional economic development, biodiversity gain, carbon sequestration and preserving cultural heritage. Achieving these ambitions in LFAs is particularly challenging. LFAs have been specifically designated for additional policy support since the 1970s. Farmers and crofters in these areas have limited ‘room for manoeuvre’ in relation to the practices undertaken on their holdings, owing to limitations imposed by climate, topography, soil quality, and distance from suppliers and markets, which affect the resultant profitability. There are also limitations on labour availability, both internal to the household operating the holding (which may be involved in multiple income generating activities) and low availability of hired labour owing to low wage rates and high accommodation costs, particularly in scenic rural areas. Rural population decline in Scotland is a well-recognised issue, but it is not consistent across LFAs (Hopkins and Wilson, 2024).