Questions over Scotland’s future farm support persist

Scotland’s farming sector is urgently seeking clarity on the future of agricultural support as it faces growing financial pressures and an uncertain transition to a new funding system.

Nearly a year after the Agricultural and Rural Communities (Scotland) Act 2024 came into force, farmers and crofters remain unsure how support will be delivered under the landmark legislation.

The Act promises a transformative, four-tiered conditional support system designed to enhance food production, environmental stewardship, and business resilience by 2027.

Yet key questions about funding, delivery, and practical outcomes persist.

See also: New NFU Scotland top team faces key farming challenges

NFU Scotland (NFUS) policy director Jonnie Hall told Farmers Weekly that while some minor changes are under way, the sector urgently needs a clear picture of what future support will actually look like – and whether it will be fit for purpose.

“We’ve got to get on the front foot. There are changes afoot, but the big question is: what does future support actually look like?” Mr Hall said.

The Act sets out five ambitious goals for Scottish agriculture:

• High-quality food production
• Thriving businesses
• Climate action
• Nature restoration
• A just transition.

Mr Hall stressed that the real challenge “lies not in ambition, but in turning these intentions into effective action”.

The road to reform

The Scottish government’s Agricultural Reform Route Map outlines a phased rollout of the new support framework between 2025-27:

• 2025 Introduction of Whole Farm Plan requirements, new protections for peatlands and wetlands, and revised calving interval conditions under the Scottish Suckler Beef Support Scheme (SSBSS)
• 2026 The Basic Payment Scheme (BPS) transitions to Tier 1 (Base) support with new sustainability conditions; Greening evolves into Tier 2 (Enhanced) support.
• 2027 Full launch of Tiers 3 (Elective) and 4 (Complementary), covering agri-environment measures, forestry and capital grants, and advisory services.

Despite this roadmap, Mr Hall remains concerned much of the support through 2026-27 will still be delivered via relatively blunt, area-based schemes – only with new labels and some added conditions.

“If we want to deliver the right outcomes in the right places, that’s not going to cut it,” he said.

Reforming the regions

A major NFUS priority is ensuring the new Tier 1 base payments, which will replace the BPS, provide the right financial underpinning for all active farms and crofts.

This means reviewing the current three-region BPS payment model and carefully considering its fit with future less favoured areas and coupled support payments.

“We need to rethink how we deliver area-based support alongside coupled support, and the conditions we attach to both,” Mr Hall explained.

“If we’re to deliver what’s being asked of farmers and crofters – in terms of food, climate, nature, and people – then recognising and rewarding their actions is critical.

“Policy must be driven by how we farm rather than blunt area-based payments alone.

“Just as important is how we allocate funding. We can design the best possible delivery mechanism, but without fuel in the tank, it’ll take us nowhere.”

Funding battle

This policy debate comes amid intensifying financial strain on Scottish agriculture.

Although the 2025-26 BPS and Greening budget remains above £424m, NFUS warns this represents a real-terms cut when inflation and rising costs are factored in.

With funding no longer ring-fenced and agricultural support included in the wider Scottish block grant, farming now competes with health, education, policing, and other public services for scarce resources.

“We’re now competing for our share,” Mr Hall warned. “After the 2026 Scottish elections, things could get a lot tougher.”

Farmers are also facing immediate pressures – from a brutally dry spring, to looming inheritance tax (IHT) changes.

NFUS has joined cross-party MPs calling on the UK government to delay proposed IHT reforms and conduct a full, transparent consultation.

Embracing change

Despite the challenges, Mr Hall says NFUS remains committed to driving positive change, provided the process is inclusive, well-resourced, and fair.

“We need a shift toward activity- or outcome-based payments instead of land-type-only classifications,” he said.

“Let’s not kick back or resist. We need to own this and ensure we get it right for all agricultural businesses – regardless of size, type, or location.”

Scottish government stance

Scottish rural affairs secretary Mairi Gougeon said the Scottish government remains committed to supporting farming and rural communities.

“In Scotland, we are committed to maintaining direct payments, supporting food production, and providing vital stability to our rural communities,” she explained.

“This is in sharp contrast to the current situation in England, where direct payments are being phased out, and their flagship Sustainable Farming Incentive scheme has been closed to new applicants.”

Ms Gougeon confirmed her government will continue working closely with the industry to develop the new support system, aiming to improve the sustainability of farming and food production in Scotland.

She added: “Our ambition is for Scotland to be a global leader in sustainable and regenerative agriculture. To achieve that, we need to transform how we deliver agricultural support.”