Estimation of sectoral CAP payment ‘envelopes’ and distribution of agri-environment and forestry support 2019

Pre-2005 the Common Agricultural Policy had specific sectoral payment envelopes, which were the summation of the various payments made within each sector. With significant decoupling of CAP support from production, firstly to the Single Farm Payment from 2005 and then the Basic Payment Scheme and Greening from 2015 there is now uncertainty over the extent of sectoral / enterprise support within the CAP. The analysis was a direct response to evidence requests from the Farmer Led Groups on Climate Change . The main purpose of this research was therefore to provide an estimate of how the current (largely decoupled) funding might be allocated to sectors within Scottish agriculture – in essence an analytical exercise in recoupling support payments to enterprise types on farms and crofts. Whilst it should be noted that farmers are not obliged to use support payments (even coupled ones) for any particular purpose (i.e. funds are fungible), the exercise serves as an indicator of the level of funding that may be required for relative sectoral support continuity under future schemes, if that is a policy objective.