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NFU Scotland President Martin Kennedy address at AgriScot 2024

Thank you very much Chair, 

Good morning, First Minister, Minister, Ladies and Gentlemen.

To Robert Neill, can I once again start by saying congratulations to you and your team on organising such a great event here at AgriScot, this event has continued to grow and is increasingly diverse in its appeal to the wider industry.  I would also like to thank the whole team for facilitating such a large turnout at this seminar given the presence of both the First Minister and the Minister for Agriculture.

One thing this event always highlights is the importance of the agricultural industry to the Scottish economy and the people within it who not only drive that economy but also deliver for our environment and support rural communities.

Sadly, given the direction of travel made clear by this new Labour Government in the budget on the 30 October, they have shown a real lack of understanding of how the agricultural industry operates. Not only have they pulled the rug from under our feet by imposing impossible tax burdens on family farms, something they said they would not do, but they have also completely washed their hands of an over 50-year-old ring fenced budget safety net put in place to support food security. 

Given Labour’s welcome strapline that food security is national security, it’s now very hard to understand their thinking. More importantly, it’s very easy to understand they know nothing at all about what all farmers and Crofters deliver for the whole of society.

So where does this now leave us? Well from a funding perspective that ball is now firmly and exclusively within the gift of Scottish Government. 

First Minister, first of all can I also thank you for attending this event today, I know the fact you responded positively to our request highlights how seriously you take the industry and I hope that means you will do all you can to enable us to play our part. Now as you know you have been my MSP for many years and during that time, we have had many meetings covering various topics, particularly in the earlier years when I was the LFA committee chair. In fact, I’m sure every time you saw my name crop up you thought, good grief what’s he wanting now? I have to say you usually understood the need for continuing support to drive our economy which enabled us to also look after an environment that’s the envy of many across the world, that understanding was always appreciated. 

And again, when we met on my farm this July, you re-iterated your predecessor’s commitment around direct support with at least 70% or rural support being targeted in tier 1 and 2 of the new tiered structure, which was also welcome.

However, things have moved on, the world is now a very different place for many different reasons and the stakes are now much higher with many more things in the mix than just funding. Issues around taxation as I said earlier, difficulties with Home office regulation that for example is stifling our ability to harvest in the soft fruit and veg sector, a major part of our economy. Less effective plant protection products which is making it harder for us to be efficient and reduce our emissions, mind blowing regulation around river management that never ever respects the advice given from the people on the ground who have generations of experience. A food price which is the lowest in Europe and the third lowest across the globe relative to income, a labelling system that’s flawed and allows our consumers to be hoodwinked on many occasions, a public procurement system that at the moment is certainly not leading by example, a programme of reintroducing species that continually bites the hands that feed us and on top of all of this the threat of another National Park that the vast majority of local people simply do not want.

All the above has been imposed on farming and crofting by government decisions that as yet have not understood the unintended consequences. Yet we are still continually asked to do more and more on a budget that has only half the buying power it had 10 years ago. So that brings me back to funding.

Regardless of the UK government washing its hands of a ringfenced fund, the fact is whatever funding now goes towards agriculture is 100% within the power of Scottish Government. Both the Cabinet Secretary for Finance and the Cabinet Secretary for Rural affairs and the Islands are on record saying agriculture now needs an uplift in funding, both stating that it will obviously be dependent on an uplift in funding from the UK Government.

That significant uplift is now there with an uplift of £1.5bn in the current financial year followed by another £3.4bn for the 25/26 financial year. This is now a record settlement from the UK government and must be reflected in a significant uplift in the agriculture budget with of course a clear timeline for the promised return of the remaining £46m.

The 4th of December is a fantastic opportunity for the Scottish government to now show, in spite of the UK Government’s decisions, that they are willing to support the agricultural sector in Scotland which is the catalyst for our £16bn food and drink industry. I also know it would send a strong signal to the industry if within that block grant you implement a 5 year multi-annual ringfenced fund. Agriculture is a long-term business and requires long-term certainty if we are to continue to not only produce food but take care of the environment to the degree, we have become accustomed to, which then drives our fantastic tourism industry. This is the very reason NFU Scotland will be holding a rally outside Holyrood on the 28th of this month to demonstrate all the positives this industry delivers.

Moving on from funding and to actions the Scottish Government can make that will not cost money but will in fact save money. We as an industry are willing to play our part as others must, to address climate change and help enhance our environment. That policy is currently being devised with the future Tier 1 element now almost finalised till 2028 and tier 2 from 2026 onwards currently getting worked on. However, these progressive policies cannot be achieved with our hands tied behind our backs. 

Last year, we saw devastating floods exacerbated by poor river management and beaver damage that cost not only the Government over £1.5m but farmers many millions of pounds more. We also continue to see more and more farms impacted by Sea Eagles that now threaten the very rural communities we are trying to protect. And on top of that we see other predators such as Badgers creating havoc on other species.

Every time this is brought up the answer that is given is this is a very sensitive subject to talk about. I’m afraid my interpretation of that answer is, if I make the correct decisions here, I might not get elected the next time. Well, the time for worrying about being re-elected is not now. Now is the time to make these correct decisions or the sensitive subjects that will have to be talked about in the future will be, why is it that we have nobody living and working in our rural communities? Why is it that we see more and more wildfires each year? Why is it all our good productive land is now waterlogged? 

Why is it we now have to import, when we can, more expensive substandard fruit and veg from other parts of the world? And why is it our economy and the environment which we loved has been destroyed? Re-election will be a distant fantasy. 

It is imperative that we listen to experience as well as expertise and science, Scotland can lead the way but only with trust in the industry.

We now have a world leading opportunity at our fingertips that only needs the nod and a date from this government to implement UHF Bovine EID. The industry has been crying out for bovine EID to be introduced for 20 years and we now need to embrace this leading technology to not only save time and money, but also improve our health and safety record, our efficiency and our animal health and welfare. All we need is a date and I would suggest the 1st of January 2026 for all calves to be UHF electronically tagged.

Another initiative driven by the government which was certainly welcomed by the industry is the good food nation act and plan, yet so far it’s not delivering. Why is it when it comes to public procurement, we put price above quality and provenance, as an example, we still cannot get Scottish Chicken in Scottish Schools. A few more pence on every chicken would create the demand to fill that supply. We cannot go on treating food like it has no value, priorities must change to realise good food locally sourced is good for your health and the environment. This must, and I have asked for this before, be part of the school curriculum. If food, climate and biodiversity is top of everyone’s agenda, then why are we not talking about it in our schools? It’s little wonder we have such a disconnect about where our food comes from.

That brings me on to labelling, NFU Scotland recently enrolled the Diffley partnership (a professional polling company) to survey 1700 people on many things to do with food labelling, one clear outcome of the poll was the desire to have much clearer labelling on products as to where the product originated from. This has given us a clear mandate to push further on this initiative as it is very much in the public’s interest. Watch this space on that one.

So back to the Scottish Government and to clearly lay out what our asks are. First Minister, you know I am an eternal optimist, and I always try and sell the massive positives of all this industry does for Scotland. It may seem that over the last 10 minutes or so I have been unusually gloomy about all the things we are currently up against. The fact is we are up against it right now, but you have the power to change that. 

Although some of our issues are reserved to Westminster, you can still show your support. 

Firstly, given the debate that’s happening in the Scottish Parliament today, I welcome your support in our opposition to the current APR and BPR proposals from the UK Government. If this goes through as currently planned, it will lead to the breakup of family farms and result in much higher food inflation. NFU Scotland will be attending the mass lobby in London on the 19th where we will be meeting numerous MPs, and I would ask that you personally raise this issue with the Prime Minister. 

Secondly, on the reserved issue around labelling, support our push for much clearer labelling on country of origin. This must be UK wide and include the food service sector. 

And to be more Scotland specific, with the new policy changes coming into play next year, within the Tier 1 structure you have asked us to do 2 from 5 in 25. That is to have carried out two of the five options available by the 15th of May 25.

I’m taking this opportunity to ask you in return to deliver 6 from 6 by 26. This would not only enable us to deliver many of your desired outcomes, but it would also allow farmers and crofters to thrive in an environment where they are respected for all they deliver.

These six asks are.

Firstly on funding, now this is entirely within your control, commit on the 4th of December to an increased ringfenced multi annual fund, albeit that be dependent on the continuation of an increased block grant from the UK, and clearly set out that you will return the full £46m borrowed from our portfolio within the next year.

Secondly, listen to the people on the land when it comes to river management and allow us to play our part to alleviate the problems of increased sediment build up leading to more extensive flooding. This is routine maintenance that can be done at no cost to government which increases our resilience and adaptation to climate change.

Thirdly, take seriously the issues around species management and commit to proper management where required to protect not only our ability to produce food, but also to protect other species and allow rural communities to thrive. Without action on this soon, we will see an even faster rural depopulation than is currently the case. Highlighting issues such as this in the context of food production is exactly why all these topics should be discussed as part of the school curriculum, that then makes the messaging around these decisions much easier as the bigger picture is understood.

Fourthly, take the opportunity now and give the industry a date to implement UHF Bovine EID, The Scottish industry is ready, this will showcase the beef sector in Scotland as being truly World Leading.

Fifthly, lead by example with public procurement and support locally sourced food at every opportunity. There is no point in having a good food nation act or plan if we don’t practice what we preach.

And finally, listen to the people who live and work in the area where a new National Park is proposed, it is absolutely clear there is an overwhelming majority that simply do not want this imposed upon them, so please just ditch this proposal, save money and allow this extremely productive area to continue to thrive.

First Minister, Minister, I am as always optimistic about this industry and my enthusiasm for it will never fail. Decisions we make today are not only critical for today’s farmers and crofters, they are even more important to safeguard the future of our next generation. We will play our part and if you play yours by delivering on these six asks, then I know collectively we will deliver for Scotland and your chances of winning back the rural vote and staying in power will increase significantly. Thank you.

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