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We welcome the early, prompt payment of funds under the Less Favoured Area Support Scheme (LFASS) which started at the end of last week. For many farming and crofters, this support will deliver much-needed cash flow and financial certainty - especially in the face of increased costs and challenging conditions.
LFASS is a scheme with a budget of £65.5 million to support farming and crofting in some of Scotland’s most disadvantaged areas. Some 70 percent of Scotland’s land area is actively farmed, of which 86 per cent or five million hectares is classified as Less Favoured Area. LFA farms and crofts drive Scotland’s red meat sector, producing around 79% of combined calf and lamb production in 2024, with an estimated output of £750m from cattle and sheep sales from LFA areas. Furthermore, by taking the wider rural economy impact due to the supply sectors into account, the output rises to £1.04bn.
9,741 businesses (out of approx. 10,100) will receive LFASS payments with a total value of £56.5 million in the coming days. While we welcome the continuation of LFASS payments, upholding Scottish Government's commitment to no ‘cliff-edge’, we are concerned at the consistent underspend of the LFASS budget. We wrote to Cabinet Secretary Mairi Gougeon MSP about the underspend across the budget and have requested a meeting, which we are still pressing for.
The Less Favoured Area Support Scheme (LFASS) delivers essential financial stability to farmers and crofters working in Scotland’s upland and remote regions. These areas face higher operating costs and natural constraints, and the scheme plays a vital role in helping businesses remain viable despite the challenges of farming on difficult terrain. By providing this targeted support, LFASS also prevents land abandonment, ensuring that disadvantaged agricultural land continues to be actively managed rather than left to deteriorate.
Supporting Less Favoured Areas is particularly important for Scotland’s sheep and beef sectors, much of which depends on grazing land in LFA. The scheme underpins these livestock systems and helps maintain a steady supply chain that is integral to Scotland’s wider food and farming economy. At the same time, it sustains the rural communities that rely on agriculture for employment and economic activity. In many fragile areas, LFASS funding helps keep local populations stable and supports the social fabric of remote areas.
Beyond its economic impact, LFA businesses deliver clear environmental benefits. Ongoing livestock management helps maintain habitats, support biodiversity, and preserve the landscapes that define much of rural Scotland.
The continuation of LFASS payments is essential to supporting farming businesses in LFA. And as we move into a new future support framework, NFU Scotland are unequivocal in our position that direct support must be maintained, and Less Favoured Areas support must be included in the future support package. Our LFA Committee will continue to ensure going forward the support rewards active land stewardship in constrained and remote areas, and supports resilient businesses and communities while delivering for climate and nature.