Scottish government unveils £660m farming budget

Scotland’s farmers and crofters are set to receive more than £660m in support under the SNP-ruled Scottish government’s proposed Budget for 2026-27, a similar amount to 2025-26.

The Scottish Budget, published today under the Rural Affairs, Land Reform and Islands portfolio, outlines investment across agriculture, crofting, land management and rural communities.

The £666.2m pot includes £540m for direct support schemes, £170.5m for key programmes, such as the Agri-Environment Climate Scheme, the Agricultural Reform Programme, and an additional £26m for the Agricultural Modernisation Fund.

See also: NFU Scotland pushes for £90m farm funding uplift

The Budget also allocates £28m for peatland restoration, £37m to create more than 12,000ha of new woodland, and £1.3m to support skills development in regenerative and sustainable farming.

Specific support for crofting includes £4.4m for the Crofting Agricultural Grant and Croft House Grant schemes, reflecting the sector’s importance to the Highlands and Islands.

Budget falls short

However, the total allocation falls short of calls from NFU Scotland (NFUS), which urged the Scottish government in December to deliver a £90m uplift.

Responding to the announcement, NFUS said the Budget effectively flatlines support for farmers and crofters, offering certainty for just one year, in contrast to the three-year funding commitment provided to farmers in England by the UK government.

NFUS 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.”

But he added that NFUS would continue to call for a multi-year funding commitment to give farmers and crofters confidence to invest in their businesses. 

SLE disappointed

Landowner organisation Scottish Land & Estates (SLE) said despite being asked to invest, adapt and deliver for communities, Scotland’s rural communities will have been given “little confidence” by the Budget announcement.

Stephen Young, SLE director of policy, said: “There appears to be little for Scotland’s rural businesses to get excited about in this Budget, with the rural affairs portfolio once again facing a real-terms cut.

“The Budget does contain some welcome measures – but it falls short of providing the long-term certainty and confidence that Scotland’s rural businesses need to invest, grow and continue delivering for the wider economy and environment.”

With Scottish Parliament elections due in May, farm leaders say the long-term direction of agricultural support beyond 2026-27 could depend on the make-up of the next government and its priorities for rural spending.