Scotland has lowest agricultural subsidy in Europe according to report

Scotland receives less rural development funding that any other European member state, a new report has shown.

Although 85 per cent of Scotland's land has been classified as 'less favoured', the country's average share of Common Agricultural Policy (CAP) funding is the lowest in European Union.

The less favoured tag means much of Scotland's land is generally only suitable for rough grazing.

Holyrood's Rural Affairs and Environment Committee have called for a change to the way funds are allocated to countries under the scheme, saying Scotland was not receiving its "fair share".

Committee convener Maureen Watt said: "The main conclusion of our report is clear – the world is facing many huge challenges, which agriculture can help to tackle.

"Scottish farmers have much to offer. Sadly, we are not currently receiving a fair share of CAP funding, which properly recognises the challenges we face in Scotland, or the contribution we can make in addressing those global challenges."

At present, payouts under are based on production between 2000 and 2002. That means so-called 'slipper farmers' – those who have scaled down production or retired – still receive sums based on their previous output. Reforms to the CAP must be agreed by the start of 2014.

"The committee strongly supports the introduction of a simplified, fairer and up-to-date CAP", Ms Watt said. "For instance, a move away from payments based on production from a decade ago would be a step in the right direction, putting an end to the so-called slipper farmers and ensuring that the active hard-working farmers of today are rewarded."

She added: "We must ensure that any new basis for allocating payments recognises the challenges of farming land in Scotland, and ends the deeply worrying trend of land abandonment, which has been going on in our hill and island communities in recent years."