Farmers, crofters, and rural stakeholders from across Scotland have seen Scottish Government deliver a budget that gives some security to the future of farming and crofting, but only for the year ahead.
The Scottish Government now has full control over agricultural spending. In NFU Scotland’s budget submission, which outlined a clear case for increased investment in agriculture and rural development in Scotland, it 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.
Initial examination of the budget announcement suggests around £680 million has been allocated to farming and crofting for 2025/26 and that funding through crucial schemes such as Basic Payment Scheme, Greening, Less Favoured Area Support and Voluntary Coupled Support have all been protected and rolled over. However, given rising costs, that means a real terms decline in terms of their value.
On the promised return of £46 million previously deferred from agricultural funding, a clear timetable has been given: £20 million is to return in 2025/26 for capital expenditure with the remaining £26 million to come a year later. NFU Scotland met with the Cabinet Secretary for Rural Affairs, Mairi Gougeon, and Farming Minister Jim Fairlie immediately after the budget statement and will meet with Scottish Government again before Christmas to discuss the detail of how this capital funding should be spent.
NFU Scotland 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.
“Similarly, 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.” Ends