This blog looks at the changes that were made at Stage 2 to the Agriculture and Rural Communities (Scotland) Bill ahead of Stage 3 in the Scottish Parliament on Tuesday 18 June.
To help navigate to different parts of the Bill, please use the contents popout below.
Background to the Bill
The Scottish Government introduced the Agriculture and Rural Communities (Scotland) Bill (‘the Bill’) in September 2023. The Bill as introduced is a ‘framework bill’. It confers powers, places some duties on Scottish Ministers, and enables changes to be made, but does not include the detail of a future agriculture policy for Scotland. This policy is under development, with most recent indications set out in the Agriculture Reform Route Map. The Bill is therefore part of an ongoing process of agriculture policy reform to make Scotland “a global leader in sustainable and regenerative agriculture” and deliver “high quality food production, climate mitigation and adaptation, and nature restoration.”
Among other things, the bill:
- Sets key objectives of agriculture policy,
- Requires the Scottish Ministers to produce a ‘rural support plan’ about the Scottish Government’s priorities for providing support in a five-year period. The bill requires certain matters to be considered when producing a rural support plan,
- Confers powers for Scottish Ministers to provide support for a number of purposes, including (among other things) general support for agriculture, support for particular products or sectors, food and drink production or processing, environment, forestry, knowledge exchange, and animal health and welfare. Scottish Ministers may also make regulations about support, regarding e.g. eligibility criteria, amounts of support, conditions for support, and enforcement and monitoring,
- Requires Scottish Ministers to produce a Code of Sustainable and Regenerative Agriculture and confers a power to make regulations in relation to the Code or in relation to other guidance about support,
- Confers a power to, by regulations, limit, or ‘cap’, support provided to a single person within a payment period or provide that the amount of support progressively reduces once a certain threshold is exceeded,
- Confers a power to make regulations regarding refusal or recovery of support where this is in the public interest,
- Provides that Scottish Ministers may provide financial support to producers in Scotland under exceptional market conditions and outlines the process around this,
- Amends existing powers in the Agriculture (Retained EU Law and Data) (Scotland) Act 2020 to amend retained CAP legislation, and removes the time-limit for using these powers,
- Confers a power on Scottish Minister to make regulations regarding continuing professional development of farmers, crofters, land managers, advisors or other relevant people, and
- Amends the Scottish Government’s powers in relation to identifying animals.
More detail on these provisions can be found in the SPICe briefing on the Bill as introduced.
Consideration at Stage 1
The Rural Affairs and Islands (RAI) Committee was the lead Committee scrutinising the Bill at Stage 1 and it published its Stage 1 report on 18 March 2024. The report made a number of recommendations.
Detailed information about the RAI Committee’s scrutiny, including its Call for Views and minutes of Committee meetings where evidence was taken from stakeholders and the Scottish Government is set out on the Scottish Parliament website.
The Scottish Government responded to the RAI Committee report on 26 March 2024.
Members of the Scottish Parliament debated the general principles of the Bill on 27 March 2024 and voted to agree the general principles of the Bill.
Consideration at Stage 2
The Bill as amended at Stage 2 was posted on the Scottish Parliament website on 15 May 2024. Minutes of Stage 2 proceedings, which were held in the RAI Committee over two meetings on 7 and 21 February 2024, set out which amendments were agreed to, amendments disagreed, amendments withdrawn, and provisions of the Bill agreed without amendment:
- Minutes of proceedings on 7 February 2024 – the Minister leading on the Bill at this meeting was the (then) Minister for Energy and the Environment, Gillian Martin MSP.
- Minutes of proceedings on 21 February 2024 – the Minister leading on the Bill at this meeting was the Minister for Agriculture and Connectivity, Jim Fairlie MSP.
The following sections describe the main substantive amendments to the Bill during Stage 2. The blog also outlines some of the areas where the Scottish Government committed to give further consideration to a proposal or issue ahead of Stage 3. This is not an exhaustive record of the debate, but rather provides a flavour of the areas where it was agreed to explore issues further.
Objectives of agriculture policy
The Bill as introduced set out four key objectives for agriculture policy. These were:
- the adoption and use of sustainable and regenerative agricultural practices,
- the production of high-quality food,
- the facilitation of on-farm nature restoration, climate mitigation and adaptation, and
- enabling rural communities to thrive.
A number of amendments were put forward to amend or add to these objectives or otherwise further define the purpose of the Act. This followed discussions with stakeholders at Stage 1 about the wording and number of the objectives, as well as how the terms would be defined. The RAI Committee recommended, among other things, that
“the Scottish Government to explore amending the number, theme or wording of the objectives, in line with the evidence provided, for example additional objectives in relation to food resilience and sustainable farm businesses.”
Two amendments passed at Stage 2:
- One additional objective was added: “the promotion and support of agricultural practices that protect and improve animal health and welfare”, and
- A regulation-making power was inserted, allowing Scottish Ministers amend the objectives by regulations made under the affirmative procedure.
Indicators, targets, monitoring and reporting
Amendments were also put forward around indicators for measuring progress against the objectives, specific targets to be met, as well as requirements for monitoring and reporting on progress.
None of these amendments passed, but some indications were made ahead of Stage 3. Beatrice Wishart and Rachael Hamilton MSPs both tabled amendments on a duty to report on Scotland’s food security. The Cabinet Secretary indicated that she appreciated the intentions behind the amendments but was not prepared to support them as drafted. She agreed to have further conversations with those members ahead of Stage 3 discuss a solution “that is proportionate and effective and that provides useful information that is not currently delivered elsewhere”.
Rural Support Plan
The most substantive changes to the Bill at Stage 3 are expected to be in relation to the duty to produce a rural support plan.
There were a number of amendments proposed at Stage 2 in relation to the duty and the matters that the Scottish Government must consider when producing the plan.
The RAI Committee’s Stage 1 report had asked the Scottish Government to consider including several provisions on the face of the Bill, such as:
- requirements for plans to include “more detailed outcomes, targets or milestones, information about budget priorities for each tier, delivery mechanisms and [information] about how support schemes would be monitored and evaluated over the plan period”,
- a requirement to produce an evaluation of the plan,
- a statutory consultation requirement, and
- an ongoing role for Parliament in scrutinising the plans.
No amendments to section 2 (which provides for the duty to produce the plan) were agreed to, and many were not moved, because the Cabinet Secretary indicated that she would be bringing forward a “robust package” of amendments on the plan at Stage 3.
The Cabinet Secretary wrote to the RAI Committee on 7 June 2024 outlining further information on stage 3 amendments for the rural support plan, which includes an outline of a rural support plan. In the letter, the Cabinet Secretary stated:
“The Stage 3 amendments I have lodged set clear requirements for the monitoring and evaluation of schemes, reports on the plan and engagement on the plan, including laying these before Parliament. It provides the assurance on detail that has been requested while retaining the need for future flexibility to determine the appropriate timescale, method and publication to ensure a robust and evidence led approach.”
In addition, a number of amendments were put forward adding to the matters that must be considered when producing a rural support plan, set out in Section 3 of the Bill.
Members agreed to amend the matter in 3(2)(c) to ensure that any other statutory duty of the Scottish Ministers relating to rural land use and biodiversity must be considered, in addition to any duties relating to agriculture and the environment.
In addition, Members agreed to include four new matters which must be considered:
- the desirability of the agricultural sector operating with fair work principles,
- the objectives of a plan produced under section 1 of the Good Food Nation (Scotland) Act 2022,
- the need for sustainable food systems and supply chains in delivering food security,
- the benefits of a diverse and resilient agricultural sector including small producers, tenant farmers, crofters and agricultural co-operative societies.
Colin Smyth MSP tabled an amendment which would require Scottish Ministers to consult with the Climate Change Committee, NatureScot, SEPA, Food Standards Scotland and Historic Environment Scotland when producing a rural support plan. The amendment would also require Ministers to detail the representations made by those bodies and include a statement of changes when publishing the plan.
The Cabinet Secretary did not support the amendment at Stage 2, but undertook to consider this proposal as part of the package of amendments on the rural support plan.
Purposes for providing support
No amendments were made to Section 4, which gives Scottish Ministers the power to provide support for the matters set out in Schedule 1. However, a number of amendments were proposed, and agreed to, in Schedule 1. These included, among other things:
- Amending the definition of ‘agriculture’ for the purposes of the schedule to include growing crops, including “for the production of energy or other non-food purposes”, and to include “deer and game farming” as well as a definition of “horticulture” and more detail on the use of land for woodlands,
- Permitting support to be provided for producing wool, pig meat, poultry meat, eggs, and venison, and
- Permitting support to be provided for “assisting persons to set aside land for the natural environment and to prevent further biodiversity loss”
The changes to the schedule in full can be found in the Bill as amended at Stage 2. Some members indicated that they intend to bring forward further amendments to the schedule at Stage 3.
Ariane Burgess MSP put forward “probing” amendments which aimed to “continue the conversation about ensuring that the right tree gets planted in the right place”. One of these sought to specify that support can be provided for creating areas of woodland where they “have a positive impact on biodiversity, carbon, and where appropriate, are a public amenity to the local area”. The Cabinet Secretary did not support the amendment, which was not moved, but agreed to “consider the proposals further and work with [Ariane Burgess] ahead of stage 3”.
Power to cap support
In line with the RAI Committee’s recommendations in its Stage 1 report, Section 9 of the Bill was amended at Stage 2 to require regulations capping or tapering the amount of funding received by one recipient to be subject to the affirmative, rather than the negative, procedure. This amendment was tabled by Beatrice Wishart MSP.
Amendments to consultation requirements
During Stage 2, the Cabinet Secretary committed to reviewing the consultation requirements across the Bill in advance of Stage 3. She said:
“We have a range of existing commitments to consult on proposed changes, which are, I think, inconsistent in their framing, particularly in relation to whom should be consulted with. That is why I propose again that, ahead of stage 3, Government officials will review all the current and proposed additional consultation requirements, to ensure that they are appropriate and proportionate, that we consult where it is necessary or most useful, and that there is consistency in the framing where that is important.”
However, two similar amendments were made in relation to consultation requirements, both requiring Scottish Ministers to consult those affected by the provisions (as opposed to those Scottish Ministers consider appropriate). An amendment in the name of Beatrice Wishart MSP was made to Section 10 on the power for Scottish Ministers to make regulations about refusing or recovering support where this is in the public interest, to require Scottish Ministers to consult “such persons as they consider likely to be affected by the provisions”.
An amendment was also made to Section 13 on the power to make regulations about support, in the name of Rhoda Grant MSP, to require Scottish Ministers to consult “such persons as they consider likely to be interested in or affected by provisions in this section”.
Eligibility criteria for support
Section 14 provides that regulations made about the provision of support under Section 13 may make provision for eligibility criteria. An amendment was agreed to in the name of Rhoda Grant MSP which specify that regulations may make provision for eligibility criteria in relation to “the ability of grazing committees [i.e. in crofting communities] and co-operatives to claim support as a collective for joint projects separate to individual support”.
Code of Practice on Sustainable and Regenerative Agriculture
Section 26 provides that Scottish Ministers must publish a code of practice on sustainable and regenerative agriculture. Edward Mountain MSP tabled an amendment which would require Scottish Ministers to publish a draft code within 180 days of Royal Assent, and consult on the draft code. The Cabinet Secretary did not support the amendment as drafted but agreed to work with Edward Mountain on the issue in advance of Stage 3.
Continuing professional development
A small amendment was made to Section 27 on continuing professional development (CPD) in the name of Alasdair Allan MSP. Section 27 provides that the Scottish Ministers may make regulations providing for continuing professional development for a range of types of people connected with agriculture and rural communities. The amendment adds “persons who work in agriculture (whether as employees or otherwise)” to this list, alongside e.g. farmers, crofters, and land managers.
A Scottish Government amendment also sought to broaden the types of expertise that a person providing CPD activities may be required to have, from just “qualifications”, to “qualifications, skills or experience”.
In addition, amendments were tabled by Rachael Hamilton and Emma Harper MSPs which sought to specify requirements for CPD activities. For example, the amendments sought to ensure that CPD is co-designed with the sector, affordable and accessible, and available in a range of formats, among other things.
The Cabinet Secretary sought to reassure members on the intentions to co-design a CPD regime to make it appropriate for a range of circumstances. She asked Members not to move the amendments so that they can “work together to address some of the issues”.
Publication of information about support
Section 17 provides that regulations about support may make require information about recipients of support (among other things) to be published. Richard Leonard MSP put forward an amendment which would include the “beneficial ownership” of the recipient of agricultural support in the list of matters which may be required to be published.
A ‘beneficial owner’ is typically understood to be any person who has control or responsibility over a business or property, even if they are not the legal owner.
The member explained that the purpose of the amendment is to “promote openness and transparency” around who is receiving support. The Cabinet Secretary urged the member not to move the amendment due to its legal complexity but undertook to “continue that discussion” in advance of Stage 3. The amendment was not moved.
Anna Brand, Senior Researcher, SPICe Research
Cover image credit: Image by Ronja Stienen from Pixabay