Direct support split widens Scotland-England divide

The gap between agricultural support in Scotland and England is widening, with Scottish farmers continuing to receive direct payments while their counterparts south of the border face their withdrawal.

However, NFU Scotland has warned that inflation is eroding the value of Scottish farm support and called for increased funding to maintain farmers’ competitiveness.

See also: Nominations open for NFU Scotland 2027 leadership

Speaking at the union’s autumn conference in Edinburgh on Thursday 29 October, president Andrew Connon highlighted the contrasting fortunes of farmers on either side of the border as direct payments are phased out in England.

He recalled meeting an English farmer whose Basic payment had fallen from £75,000 to just £600 this year and would disappear next year.

“She said to me: ‘If I were in Scotland, I’d still have my £75,000.’ That conversation stuck with me,” he said.

Mr Connon said Scotland had got one thing right by retaining meaningful direct support, with ministers committing to channel at least 70% of future agricultural funding through the first two tiers of the four-tier support framework.

But he warned that inflation had eroded the value of that support, reducing its purchasing power by about 27% since 2014.

He called on ministers to increase the agricultural budget from £677m to £860m in the Scottish Budget on 3 December – an uplift of £183m. He also called for funding to be protected in real terms until 2030 and beyond.

“The government cannot reasonably expect more from agriculture and continue to provide less in real terms,” Mr Connon said, noting that the agricultural and rural economy budget represents less than 1% of the overall Scottish government budget.

Gillian Martin MSP, cabinet secretary for climate action and rural affairs, said Scottish farmers received direct payments at a higher level than anywhere else in the UK, describing Mr Connon’s example of the English farmer as “very sobering”.

She said the Scottish government shared farmers’ frustration over inflation, but faced financial pressures as UK government funding fell in real terms.

“Unlike our counterparts south of the border we will not be removing direct subsidies for farmers,” she said. “We won’t do that in Scotland.”

Ms Martin said the Scottish government would continue providing stability, while developing the four-tier support framework due to take shape by 2030.

Support for active farmers

However, farming minister Jim Fairlie warned that significant changes lay ahead, with future payments increasingly targeted at active food producers rather than landowners or those no longer actively farming.

“If you’re not actively farming in 2030, the support you’re going to get from this government is going to be extremely limited, if any at all,” he added.

Meanwhile, Ms Martin revealed ministers were working with stakeholders to develop a model for landscape-scale collaboration, aimed at delivering more joined-up benefits for nature and climate, with a pilot planned for next year.