The National Farmers’ Union Scotland (NFUS) has said the budget delivered by the Scottish government this week gives “some security” to the future of farming and crofting, “but only for the year ahead”.
Initial examination of the budget announcement on Wednesday, December 4, suggests that around £680 million has been allocated to farming and crofting for 2025/2026, the NFUS said.
Funding through “crucial schemes” such as the Basic Payment Scheme, Greening, Less Favoured Area Support Scheme, and Voluntary Coupled Support have all been protected and rolled over, according to the NFUS.
However, due to rising costs, the union said this means a “real-terms decline” in value. Ahead of the budget announcement, over 1,000 farmers and crofter held a rally outside the Scottish parliament last week.
In its budget submission, the NFUS called for a “moderate increase in rural spending given the increase in the Scottish government’s block grant”. In addition, the union sought guarantees on a multi-annual basis.
Scottish farmers
A timetable has been given for the remaining £46 million previously deferred from agricultural funding, the union said, including £20 million in 2025/2026 for capital expenditure, with the remaining £26 million to come a year later.
Following the budget announcement, the union said it met with the Cabinet Secretary for Rural Affairs, Land Reform and Islands, Mairi Gougeon, and Minister for Agriculture and Connectivity, Jim Fairlie.
The NFUS said it will meet with the Scottish government again before Christmas to discuss the detail of how the capital funding should be spent. The Scottish government now has “full control” over agricultural funding.
Commenting on the budget: NFUS president, Martin Kennedy said: “Scottish farmers and crofters deserved a budget that recognised their indispensable role in Scotland’s rural and national prosperity.
“However, while falling short on our justified budgetary asks, we have received a budget that, if approved, provides guarantees that key support schemes will be delivered.
“Securing the return of the £46 million in deferred funding was a top priority for us, and we look forward to working with the Scottish government on how best to deliver capital support to help future-proof our industry.
“However, it’s disappointing that there has been no real-terms increase in funding for farming and crofting, and Scottish agriculture has not benefitted from the eight per cent increase in the block grant received by the Scottish government.”
Kennedy added that “calls for funding guarantees to be given on a multi-annual basis have been unsuccessful, consigning the industry to an annual battle over future support”.
“Farming and crofting are long-term industries that deserve a funding package that allows them to plan for the future,” the NFUS president said.
