NFU Scotland has today responded to the Scottish Government’s 2026–27 Budget, warning that it largely flatlines support for farmers and crofters, providing certainty for one year.
President Andrew Connon said: "The Scottish Government has delivered a budget that essentially flatlines vital direct support payments. That will give some certainty and security. Scottish farmers and crofters deserve a budget that recognises their indispensable role in delivering high-quality food, climate and nature outcomes, and supporting rural communities."
The Scottish Government confirmed over £660 million in support for farmers, crofters, land managers, and rural communities, including continued direct payments and investment in transforming farming and food production. This includes £540 million for vital direct support schemes, £170.5 million for key programmes, such as the Agri-Environment Climate Scheme, the Agricultural Reform Programme, and an additional £26 million for the Agricultural Modernisation Fund, alongside £4.4 million for Crofting Agricultural Grant schemes and £1.3 million for skills development in regenerative and sustainable farming.
While NFU Scotland welcomes the return of the £26 million for Agricultural Modernisation, the Union warns that flatline funding through schemes such as the Basic Payment Scheme, Greening, Less Favoured Area Support, and Voluntary Coupled Support still represents a real terms decline in support, given rising costs. Similarly, modest increases to the Agri-Environment Climate Scheme budget do not meet the scale of investment required for climate and nature action.
Given the three-year line of sight provided by the UK Government’s Spending Review last June, the Union notes that the Scottish Government has set out significant spending plans for agricultural support to 2028/29 and we welcome this.
In our budget submission, we set out a clear case for a multi-annual commitment, and the Spending Plans appear to have met out ask. We also called for increased investment in agriculture and rural development, calling for higher direct support using the fiscal headroom available in the block grant. This was needed to offset the real terms decline in support and to underpin the growing expectations placed on farmers and crofters.
Connon reiterated: "Farming and crofting are long-term industries. Without a stable, multi-annual investment framework, delivering on food security, climate, nature, and rural livelihoods becomes far more challenging.”
NFU Scotland will continue to call for:
- Stronger, multi-year funding commitments to give farmers and crofters the confidence to plan and invest.
- Protection of farm support funding to ensure money allocated to agriculture is spent in the sector.
- Full and timely delivery of the Future Farming Investment Scheme and other capital support.
- Pragmatic approaches to regulation that enable productive farming alongside environmental outcomes.
- Ongoing engagement on UK-wide tax reforms to safeguard family farms and rural livelihoods.
Connon concluded: "Today’s Budget contains some positive elements, but it falls short of what Scottish farming and crofting need to meet the increasing expectations placed upon them. We will continue to work constructively with government to secure a sustainable future for Scottish agriculture."
NFU Scotland will analyse the full Budget and its implications before providing further details.
Notes to editors:
- A photograph of NFU Scotland President Andrew Connon is attached.
- NFU Scotland’s full submission is available here.
Ends
Contact Megan Williams on 07920 018619