A think-tank has claimed that a "core UK policy" is the best way forward when deciding how to deliver farm subsidies post-Brexit.
New Direction, a think tank headed by Scotland Office minister Lord Duncan, said that it would not be acceptable for the Scottish Government to give “significant subsidies” to sheep farmers in Scotland which aren't available to sheep farmers in England or Wales.
It said that allowing so, Scottish sheep prices would "unfairly undercut" other sheep farmers across the whole UK market.
“For these reasons a core UK policy is needed to replace the existing EU CAP,” it explained.
“Such a policy would not reduce the scope of the powers of the devolved legislatures but would simply replace existing EU powers (although ritual declarations that devolved parliaments’ prerogatives were being usurped might be expected).
“However, the content of the core UK agricultural policy would no doubt be the subject of negotiation between Westminster and the devolved legislatures and governments.”
The think tank said it should be a matter for Westminster to decide if and when powers devolved under the 1998 settlement should be returned to Scotland.
Conservative MP Damian Green said a UK policy is needed to control agriculture in case “subsidy wars” break out between England, Scotland and Wales, due to devolved governments having the power to increase payment rates.
'Lack of understanding'
But SNP politician Patricia Gibson, MP North Ayrshire and Arran, said Lord Duncan has shown a "complete lack of understanding" of the needs of the Scottish rural economy.
She said there is a higher concentration of farmers and crofters, with specific needs.
Ms Gibson said: “On the one hand the Tories say Scotland should use its devolved powers to mitigate Westminster’s welfare cuts, for which resources would have to be redirected from Education, Health etc; while on the other the prospect of the SNP Government using its powers to support our own sheep farmers is somehow wrong.
“The Tories’ are attempting to centralise power in London to the detriment of our rural economy.
“It is clear the Tories cannot be trusted to act in the interests of farmers and crofters in Ayrshire and across Scotland."
New Scottish Parliament figures show that Scotland would lose out on over €2,298 million in subsidies - around £2,000 million - if CAP funding is replaced by UK-wide per capita funding because it has a higher concentration of agriculture workers.
'Fair allocation'
However, farming union NFU Scotland has previously said funding must receive a "fair allocation" across the UK, and that a UK-wide financial framework is the best option.
NFU Scotland Union’s President Andrew McCornick said: “We continue to press on the UK Government the importance of committing to longer term funding and its fair allocation across the UK. That will be key to winning the confidence of Scottish farmers and crofters, and a clear indication that their needs are being heard in the Brexit negotiations.
“We are looking to both Westminster and Holyrood to restore confidence and certainty to all Scotland's farmers and crofters through agreeing a necessary and meaningful transition.
“The discussion with Ministers at Westminster today gave us the opportunity to reiterate our position that any successor policy should be funded on a UK-wide common financial framework, but with policy development and delivery kept within the mainstay of the devolved administrations.
