 The next item of business is a statement by Fergus Ewing on supporting farming and food production in Scotland. The cabinet secretary will take questions at the end of his statement and there should therefore be no interventions or interruptions. Cabinet secretary, 10 minutes please. Thank you, Presiding Officer. I am pleased to update Parliament on the support that this Government provides for farming and for food production in Scotland. We are now very close to completing the last of the 2015 direct support payments to farmers and crofters. I remain absolutely determined to ensure that every farmer and crofter due a payment for 2015 receives it in full. On basic and greening payments, £2 million more has been paid out since statistics were published last week and approximately 18,000 farmers and crofters have now received a payment. There is now a maximum of 350 who have not yet received a 2015 payment. A few will be ineligible. Most others have received a loan. The number awaiting a balanced payment, additional to their first payment, is down to 100. Payments under the beef and sheep schemes will be completed this week. As I indicated on 13 September, we had hoped to start ELFAS payments in September. Unfortunately, the technical issues advised of then have continued and we will not now be in a position to begin ELFAS payments until later this autumn. It is useful for members to remember, however, that 11,000 farmers entitled to an ELFAS payment have already received loans worth £54 million. However, rapid progress is being made to implement the 2016 loans scheme. Letters inviting 7,324 farmers and crofters to apply for a loan were sent last week. As already advised through a parliamentary question answered on Monday and a topical question answered yesterday, manual checking of a sample of calculations uncovered an undervaluation which affected some potential applicants. The farmers and crofters, significantly affected by this undervaluation, have now been written to again to advise them of their revised loan offer. Presiding Officer, if every member should note that no farmer or crofter will be worse off as a result of this. The error is regrettable and I apologise to anyone affected, but immediate steps have been taken to rectify matters. The deadline for applying for a loan has been extended to 19 October for those affected, in other words, by a week. Officials have advised that all applications received by then will receive their full loan entitlement within the first half of November. This loan scheme, which will inject up to £300 million into Scotland's rural economy this winter, will ensure that farmers and crofters have funding before the date at which they could normally expect to receive their cap payments for 2016. Clearly, cap pillar 1 payments form the cornerstone of government support for farming and food production in Scotland, but funding provided under pillar 2 of the CAP also makes a vital contribution. On Monday, I announced £8.8 million funding for food processing with a visit to McQueen's Dairies, a family-run business. Its grant is to purchase new equipment that will enable the business to grow, while protecting livelihoods among its workers and dairy farmers. That support contributes to the on-going success of our food and drink sector, which enjoyed record turnover of £14.4 billion in 2014, while on the way to meeting the target of £16.5 billion for 2014. That will be further aided by the development of a national food and drink hub with key partners next year. On 1 September, I announced £11.4 million to support investment of up to £48 million in sea fisheries, agriculture and processing industries. That coincided with the first rural summit with the farmed shellfish sector. Further summits are planned this winter to consider challenges and opportunities in supply chains, in farming and planning and in the finfish agriculture sector. While I am doing all that I can to support how we currently farm and produce food, it is also vital that we look to the future. That is why I am focused on ensuring the sustainability of farming in Scotland. The fact that more than two thirds of Scottish beef breeding herd have signed up to the new beef efficiency scheme indicates that farmers share that focus. Sustainability is also about growing markets. Officials are now analysing responses to our consultation on seeking BSE negligible risk status, which will benefit livestock farmers and potentially many food processing businesses. We also continue to support collaboration among Scotland's vets, among our research institutes and our FE and HE institutions to address the problems of antimicrobial resistance in animals and livestock. That is not just a wellbeing issue but also an economic one enabling more efficient and more profitable food production in the long term. People are also key to the future of farming and food production. This morning, I was privileged to attend a workshop as part of the development of our vision for Scottish agriculture and speak to young farmers after attending a meeting of the co-op farm stock and addressing some of their members. At the Royal Highland show this year, key emerging themes for this vision were published and today's workshop focused on what is arguably the most important, ensuring that agriculture is recognised as a rewarding career accessible to new entrants and young entrants. That is why I recently announced £7 million funding to help to create and develop around 140 new farming businesses across Scotland. In my many conversations with people involved in farming and food production across the country, a recurrent issue is the need to encourage children and young people to recognise that a career in farming and food production and the many varied ancillary functions that support it is a good choice for them to make. The fact that five out of the 24 recommendations in the Scottish sheep sector review relate to education and training underpins this. The vital statistics that the average age of farmers is now 58 confirm the urgency with which we need to act. Today's workshop brought together education providers to share what works well in supporting young people who are considering or have chosen agriculture as a career. That will augment the support that this Government already provides in this area. £35,000 to the Royal Highland Educational Trust for 18 food and farming events for approximately 4,000 school pupils and to involve 300 primary pupils in farmers market projects. £420,000 annually to Lantra to work with schools and colleges to identify skills gaps and provide modern apprenticeships. Over £10 million annually to Scotland's rural college for teaching on subjects relating to farming and food production. We also know that informal support that is delivered by young people to other young people makes a positive difference. I am announcing today additional funding of £20,000 to Scotland's young farmers to create a peer support network in rural communities to complement existing careers advice for young people so that more choose subjects and courses at school and beyond that lead to careers in farming and food production, add value to existing activities that explain routes into working in farming and food production and provide mentoring and buddying for young people taking on or starting a farm. We must get the direct support for farming and food production in Scotland right. I remain utterly focused on achieving that. We are working flat out still to complete the 2015 cap payments to implement the 2016 loan scheme and to put the 2016 cap payments on to a proper footing. Additional support also helps to drive forward Scotland's rural economy and is all the more important during these most uncertain of times. That uncertainty means that this Government is not waiting for decisions to be made for us about rural Scotland's future. Instead, through direct and indirect support for current and future farming and food production, we are getting on with the job of making rural Scotland's future. The cabinet secretary will now take questions on the issues raised in his statement, and I intend around 20 minutes to so do. After that, we will move on to the next item of business. It would be helpful if members who wish to ask a question could press their request to speak buttons now. I call on Peter Chapman. Thank you, Deputy Presiding Officer. I thank the cabinet secretary for advance sight of his statement and remind the chamber of my farming interests in the register. Once again, the cabinet secretary has been dragged to this chamber to explain his inability to get money to the farming community. Money that is rightfully theirs and is desperately needed. I remind the cabinet secretary that, when he was appointed to his new role, he promised this chamber that getting this IT system started was his first priority and that he was gone to get an about it. Let me tell him that he has failed miserably. There has been no step change in the speed that the money has gone out. It continues to flow at a snail's pace. I make no apologies for repeating that this debacle has caused more hurt, heartbreak and worry to the farming community than any other single issue in the last generation. It has meant families all across rural Scotland. It has meant families sitting around kitchen tables worried sick about how they are going to pay their bills. That is the reality. I repeat my question of yesterday, which the cabinet secretary completely failed to answer. The question is this. Why are only 17,324 farmers being offered alone under the scheme out of 18,300 businesses eligible for cap payments? Are those 1,000 businesses the same businesses that are still awaiting substantial amounts of money from the 2015 scheme? In answer, let me introduce a few facts. First of all, in respect of the 2015 payments, 97 per cent of all basic payments have been settled in full. That is all but 3 per cent. I want those 3 per cent to be settled in full if they are eligible, but 97 per cent is not quite in accordance with the tone of Mr Chapman's speech. All but 4 of the 1,099 suss payments have been paid in full. All but 9 of the 7,314 Scottish Suclair beef support payments have been paid in full. 54 million out of the total 66 million LFAS payments have been paid in full. I absolutely understand that many farmers and crofters have suffered difficulties, some of them seriously. That remains my view. I will not be satisfied until everyone is paid in full, but I can tell Mr Chapman this. When I was at a farm stock this morning speaking to actual farmers that are still farming, not sitting in here making speeches about farming, I can tell you what they said. What they said is that they thought that the national loan scheme that will inject £300 million into the rural economy was a very sensible measure. What a shame that Tories do not get it. Rhoda Grant. I have had no response to my question twice, none whatsoever tonight. I have asked it twice and I have no response. That is not a point of order if you have a problem with that, Mr Chapman. You cannot write to the Government. Rhoda Grant. Thank you, Presiding Officer. I also thank the Cabinet Secretary for our prior site of the statement. I also understand that an independent technical assurance review will now take place off the IT system and welcome that. Can I ask him what help he is giving to the 350 people who have received nothing so far? Can I further ask what further information he can give if the IT system proves incapable of delivering and whether there is a disaster recovery scheme in place? That must never happen again. Fergus Ewing. Those are very sensible questions, Presiding Officer, and let me answer them in turn. First of all, in respect of the 350 cases, as I said in my statement, the majority of those will already have received loans of the majority of their entitlement, but we are working through those remaining 350 cases, which are waiting full payment depending upon confirmation of eligibility. I can assure you that that work is going on at the moment. I also ask quite fairly about the computer system. Let me say this, that this is the top priority for me to resolve. Along with senior officials, we are busting a gut to do so. We are working with the contractor in a productive fashion. We have seen a great deal of progress. We have seen many of the problems addressed successfully with what is called IT fixes. Progress is going on apace, as we speak. The PAC meeting, £2 million of payments have been processed. I expect that most of the rest of the full payment process will be processed by the end of October. Yes, there are difficulties, the member fairly points them out, but I am confident, Presiding Officer, that in accordance with the timetable that I indicated in my last full statement, we will sort those problems out and we will do so in the early part of next year. I say to the chamber that there are many, many members who wish to ask questions. We will get through more of them if people keep their questions and the minister responds as succinctly as possible. Emma Harper, to be followed by a nearly forgot, Finlay Carson. Thank you, Presiding Officer. I certainly appreciate that everything is being done to remedy matters, but it could be confusing for some. Can the cabinet secretary clarify what people need to do about their first letter and about their second letter that they received in order to make sure and apply for a loan? Can he also advise what will happen with those not currently eligible for a loan? Fergus Ewing. Yes, those who receive a loan offer should return the slip if they wish to accept it. Those in respect of whom the undervaluation was made will be contacted by the local office. They will receive a second letter and they should return the opt-in slip. They should seek to do so by 19 October deadline. If they return the opt-in slip from the second letter, they do not need to return the first opt-in slip. They should, of course, if they wish, contact the area office. Both of the letters have details about who should be contacted. The ARPID website also contains extremely useful information, as most farmers will know. That is also a useful port of call. We want to ensure that all of those payments are made in the bulk of the payments, rather than to be made in the first fortnight in November. That is what we seek to do. We estimate that there may be a further 800 loan offers that we will seek to make. Those fall into various categories—entitlement cases, private contract cases, cross-border cases and cases where we feel there may not be eligibility. I would say about all of those that we are busting a gut to make sure that, if as many people as possible are entitled to a loan, we will get a loan. That includes everybody except those who are ineligible under the rule schemes. My officials are working flat out, including overtime, which is a sensible measure, in order to ensure that every farmer can get a loan under the scheme if he or she is so entitled. That will involve a lot of detailed work, but I am determined that it will be carried out, and it is being carried out. Finlay Carson, followed by Claudia Beamish. Presiding Officer, this is becoming a bit like Groundhog Day, where the cabinet secretary regularly appears to apologise for the continued technical issues. Mr Ewing told the members that we should refer our issues to the local office. I was advised that payments are being made by the local office and sent to central payment teams in Edinburgh. Farmers are being told that payments are being approved and given dates for payments, but no money has been forthcoming. We do not have time for examples. Can we have a question, please? Since May 2016, one farmer in Dumfries and Galloway has been advised on five separate occasions that their payment will be made by the end of the week, and on five separate occasions that has not been the case. Can we have a question, please, Mr Carson? That is questions on a statement. Thank you, Presiding Officer. In the words of Mr Ewing's colleague, Alex Neil, this has been a fiasco. It has been a total failure. So why has there not been a price to pay for that failure? Fergus Ewing. For me to say, Presiding Officer, that 97 per cent of payments, the claims, have been paid in full. I think really the rhetoric is a bit past itself by date. However, let me say to Mr Carson that he could have supplied me, Presiding Officer, with the detail of the case before this chamber. If he wanted a detailed answer, I would have given it to him. If he gave me the individual case or any member does, I would look into it, but he did not do that. He came here and he talks about one case without going into circumstances. It is not really very good practice, but I guarantee that I will look into the case as soon as I receive a relevant request so to do. Claudia Beamish, followed by Mark Ruskell. Presiding Officer, £20,000 additional funding to Scotland's young farmers for a peer support network is welcome. However, what is the Scottish Government doing to identify more starter farms for new entrants, and what indeed is the Scottish Government doing to develop the contribution of organics and eco-agriculture, agriforestry and local supply chains, which will help the next generation of farmers to tackle climate change? Fergus Ewing. Again, all very fair points, I have to say, from the Labour Party today. We work very carefully and closely with the organic sector. I met the Sol Association recently. We are engaging with them again. Plainly, they are a niche market, but they are an important part of farming. You ask about further work to identify land for young entrants. I am convening a meeting with all public bodies that may have land available in order to ascertain whether we can do more. I refer, of course, to the instance of the Forestry Commission, who has a scheme that has helped young entrants. I met several of them at their All Highland show in Ghoston on 23 June. Just this morning, I had a very interesting discussion and dialogue with four young farmers precisely about those matters and how we helped them to make a success of entering into farms. I am delighted that we are doing this work, but, of course, there is a lot more to be done and we are getting on with it. Mark Ruskell, to be followed by Mike Rumbles. Thank you. Cabinet Secretary, you said on 13 September that your work to support agri-environment schemes was, I quote, literally impossible because of the lack of clarity from the UK Government on pillar 2 and the rural development programme. We have now had that clarity this week on Monday. UK Governments announced that farmers are eligible for funds up to the point of Brexit. Will we get a definitive statement from the Scottish Government about your commitment to pillar 2 and agri-environment funds or Mr Mackay, who is creating the uncertainty and the problems? Fergus Ewing. Let's get to the facts here. We have not had clarity from the UK Government about pillar 2. We have been seeking clarity about pillar 2 payments since the day after Brexit. Of course, pillar 2 payments support agri-environment schemes forestry, forestry, ELFAS—absolutely vital to support vulnerable communities and to support valuable greening schemes. I agree with that. The statement that we had yesterday, a very brief statement, begs far more questions than answers. It doesn't say what happens between March 2019 and 2020, one whole year of the SRDP programme. According to a leading member of the farming community just yesterday, the uncertainty still remains. However, I do pledge this. As soon as we receive certainty, clear facts about continuance of funding, all of the funding under pillar 2, then we would be in a position to provide and to consider providing the guarantees that so many people in the rural economy desperately seek. Mike Rumbles, followed by Stuart Stevenson. On Thursday, the director general said in evidence to the Audit Committee that their review of the current system could conclude that it is absolutely fine and that we should just continue as we are. Does the minister not accept that continuing with the current system is simply not an option, that he needs to start planning now for a new Scottish system of farm support post-2020 when we will have left the EU and the responsibility for such a system will be entirely his? Will he set up a group of civil servants to look at the options for the future post-2020? We have been working on this for a very long time. We have set up a team of civil servants working on this a long time ago. Over, while there he goes again, barracking from the back benches, Mr Rumbles, as always, but let me just continue to try to answer his question. In 2015, at the Royal Highland show, we set out a debate about the future of agriculture in this country. We received lots of responses, lots of responses from people in the countryside. I think a response to Mr Rumbles right enough, but he is making his voice audible at least now. What I can say is that his criticisms of us in respect of the flaws in the CAP policy, particularly slipper farming, are way, way, way off the mark. Members will recall them the other day. Of course, we didn't hear that it was the Liberal Democrats in the form of Alasdair Camaeco, who in a press statement in November 2013 raised the common agricultural policy with the slipper farmer payments. He said that it was the best result that Scotland could ever get. So there we have it, same old Liberal Democrats, one thing from one side and one thing from another side, aka Mr Rumbles. Stewart Stevenson, to be followed by Douglas Ross. Given the importance of primary and processed food production in my constituency, I very much welcome the announcements that the cabinet secretary has made about supporting the food industry. Can he advise, of any steps he can take, or the UK Government may be contemplating, to protect these industries' access to labour from other parts of the EU upon which they are critically dependent? Fergus Ewing. That is an extremely serious matter. In all the visits that I have made to farms to co-op such as Great Co-op, such as Aberdeen Grain, such as Ringlink, such as Grampian Grores, whether it's in raspberries, whether it's in tatty picking, whether it's in a whole range of jobs in the rural community, we are reliant on people who come from the EU to work here, who choose to do so, who are welcome here and also many of whom are migrant workers. The fact is that Stewart Stevenson knows this constituency in respect of fish processing that we are utterly reliant on the goodwill of people who are welcome in this country. The announcements emerging from the Conservative conference are of the most right-wing reactionary variety I've ever heard in 17 years of politics. They are quite shocking and quite disgraceful. Douglas Ross, followed by Colin Smith. Thank you, Deputy Presiding Officer. As a former chairman of Lowerspeed Young Farmers in Murray, I noted the announcement of £20,000 for Scotland's young farmers. That followed the Scottish Government's decision in January to end the SAYSE annual grant of £66,000 and to reinstate less than half of that following pressure from the sector. Can the cabinet secretary confirm that the money now being provided to young farmers is still less than last year and will he give a commitment to reinstating the regular grant to young farmers in future years? Fergus Ewing. I'm sorry to disappoint the young farmer, but I can reassure him that I was just speaking to a group of young farmers this morning and was able to confirm the very substantial support that the Scottish Government has been delivering this year. I'm very happy to write with the full details to the member for his benefit. Of course, we want to help young farmers. By helping young farmers, we want them to have access to a single market. We want them to be able to hire people that come from Europe and are happy to do so, not send them away and say that they're unwelcome in this country. Colin Smyth, followed by Gail Ross. Thank you, Deputy Presiding Officer. I'll continue the hopefully reasonable line of questioning from Labour's cabinet secretary. Bear in mind that we are now into October. Can he clarify a date when he expects all farmers waiting for LFAS payments to have received alone? Clarify, for example, how many of the 11,000 farmers entitled to an LFAS payment have received a cap payment, how many of those 11,000 have had their LFAS payment delayed but received alone, and how many of the 11,000 have neither received a cap payment nor alone? Sorry, I wasn't quite sure what he was talking about LFAS solely. Was he talking about LFAS? Okay, the number of claims to pay are estimated 11,500. The total due is 66 million. Of that, 54 million, approximately, has been paid. We are working, as I said, in the statement, very hard to deliver the remaining IT fixes to enable payment procession to begun. Progress has already been made with some elements of the IT fixes in order to deliver the LFAS payments. As I said in my opening statement, I believe, I can check this, Presiding Officer, and write to the member if my memory is incorrect. We plan to make all of those payments in autumn of this year, but mindful of the fact, all of those payments are the remaining 20 per cent, because in almost every case, those making the claims will have received a loan of around 80 per cent. So it's not perfect, it's not satisfactory. I recognise that, but my pledge to those involved is that by the end of the autumn we will have completed those payments if we possibly can, and if there's any further difficulty, I will, as always, report back to Parliament. I'm sure that I won't be short of opportunities so to do. Gail Ross, followed by Edward Mountain. Thank you, Presiding Officer. As an ex-member of Bower Young Farmers, I welcome the announcement of additional funding for young farmers clubs, and I hope that those in my constituency will benefit. Can the cabinet secretary advise how that new initiative will work with established formal routes provided by the likes of the SRUC and the UHI? Fergus Ewing. Yes, I was at a workshop this morning with young farmers and the SRUC, and I know that they have good working relationships. We will take that forward with them. I would also say to Gail Ross that we do appreciate very much the support of banks for young entrants. I was struck by the real enthusiasm that people in the banking community themselves very embedded in the rural community in Scotland go out of their way to provide mentoring for young people, which can even be more important than provision of finance, the right kind of mentoring and finance, so I would take this opportunity to very much welcome the positive role played by the banks and many others in helping those young people. We have gone over the 20 minutes, but I can squeeze in Edward Mountain if he's brief. As instructed, I'll be brief. I'd like to thank the cabinet secretary for giving me the sight of his speech and also declare an interest that I am part of a farming partnership. Last week, the director general said that it was no-one's fault the problems with the cat payments. It was optimism bias on behalf of the Government. I'm not sure what that means, but I'd like to ask the minister a simple question. Without any optimum bias, when will the final 20 per cent of the 2016-17 payment worth about £60 million to £80 million be paid for farmers? What I'd like, minister, is an equally quick answer a month and the year, please. Fergus Ewing. I think that if I heard him correctly, he's referring to the 2016-17, not 2015. No, 2016-17. Well, 2016-17 is next year, and I've already covered that in the statement that I made to Parliament before. But I think that there's an element of confusion in the question, so I'll be happy to write to the member if he so wishes. That ends the statement and questions on supporting farming and food production in Scotland.