NFU Scotland has warned that the Scottish Government’s 2026 to 27 Budget largely flatlines support for farmers and crofters, providing short term certainty but failing to reflect rising costs and growing expectations on the sector.
The Union said the Budget offers a one year line of sight for direct payments while falling short of the investment needed to support food production, climate action, nature recovery and rural communities.
The Scottish Government has confirmed more than £660 million in funding for farmers, crofters, land managers and rural communities, including £540 million for direct support schemes and £170.5 million for key programmes such as the Agri Environment Climate Scheme and the Agricultural Reform Programme.
The package also includes £26 million for the Agricultural Modernisation Fund, £4.4 million for Crofting Agricultural Grant schemes and £1.3 million for skills development in regenerative and sustainable farming.
NFU Scotland 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.”
While welcoming the return of funding for Agricultural Modernisation, the Union said flat funding for schemes including the Basic Payment Scheme, Greening, Less Favoured Area Support and Voluntary Coupled Support represents a real terms decline due to rising input costs.
NFU Scotland also said modest increases to the Agri Environment Climate Scheme do not meet the level of investment required to deliver meaningful climate and nature outcomes.
The Union noted that the Scottish Government has now set out spending plans for agricultural support to 2028 to 29, following the UK Government’s Spending Review, and said this longer term view was welcome.
Mr Connon added:
“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 said it will continue to press for stronger multi year funding commitments, protection of agricultural budgets, timely delivery of capital support schemes and pragmatic regulation that supports productive farming alongside environmental goals.
Mr 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 said it will now analyse the full Budget in detail before setting out further views on its implications for the sector.
