NFU Scotland has reiterated its clear position in relation to Scotland’s future direct support budget in response to a consultation from the Agriculture Reform Implementation Oversight Board (ARIOB).
ARIOB was established to oversee agricultural policy reform, post-Brexit, in Scotland.
In its submission, NFU Scotland stated that at least 70 per cent of Scotland’s agricultural budget must be allocated as direct support (to Tiers 1 and 2) under the new four-tiered policy framework. Of that direct support budget, 70 per cent should then be allocated to Tier 1 and 30 per cent allocated to Tier 2 from 2026 onwards.
Scotland’s total agricultural budget is determined by UK Treasury and NFU Scotland has been lobbying for an increased, ring-fenced, multi-annual budget to be announced as part of the UK Budget on 30 October. Securing this budget remains the lead priority for NFU Scotland at this time.
Once Scotland’s share of that budget is committed to the Scottish Government, a further critical risk is how that funding is then allocated across the four Tiers of future support. The Union has asked for Scottish Government to provide clarity at the earliest opportunity and for it to consider using NFUS’ Autumn Conference, taking place at Ingliston on 24 October, as a platform to provide detail on the Tier 1/Tier 2 funding split.
NFU Scotland Director of Policy Jonnie Hall said: “We remain unequivocal in restating that the significant majority of the future support package in Scotland must be delivered as direct support through Tiers 1 and 2 to underpin and incentivise agricultural activity and management changes to drive efficiency and productivity, while building resilience and enhancing our environment.
“We welcomed the then First Minister Humza Yousaf’s announcement in February at our AGM that at least 70 per cent of future Agriculture and Rural Economy (ARE) portfolio funding will be as direct support via Tiers 1 and 2, with Less Favoured Areas support in addition to this. Moreover, we noted the commitment to uphold this from the current First Minister John Swinney MSP when we met him on 29 July.
“We are clear that the allocation of direct support funding between the Tiers 1 and 2 needs to ensure the delivery of the required outcomes from Scottish Government’s ‘Vision for Agriculture’ by sustaining active farming and crofting. We also completely agree with the repeated assertion of the Cabinet Secretary for Rural Affairs and Islands Mairi Gougeon MSP that there can be no ‘cliff edge’ from policy reform.
“As more conditionality will now be attached to Tier 1 payments, starting with a Whole Farm Plan eligibility requirement for the Basic Payment Scheme in 2025, we believe that at least 70 per cent of Scotland’s direct support budget must be allocated to Tier 1 with the remaining 30 per cent devoted to Tier 2.
“To achieve the policy objectives of high-quality food production, climate and biodiversity, we have been clear and adamant that retaining 70 per cent in Tier 1 and 30 per cent in Tier 2 will underpin and incentivise agricultural activity and management to drive efficiency and productivity, while building resilience, enhancing our environment and continuing to support rural jobs and supply chain businesses.
“We urge the Scottish Government to make an announcement to clarify the funding split for Tiers 1 and 2 at the earliest opportunity and there is no better platform to do so than at our conference next week.
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Contact Bob Carruth on 0131 472 4006