The Scottish government recently released its Budget for 2026/2027, confirming that over £660 million has been allocated to support farmers, crofters, land managers, and rural communities.
This farming budget will provide £540 million for vital direct support schemes; £170.5 million for key programmes, such as the Agri-Environment Climate Scheme, and the Agricultural Reform Programme; and an additional £26 million for the Agricultural Modernisation Fund.
Additionally, £4.4 million has been put aside for Crofting Agricultural Grant schemes, alongside an allocation of £1.3 million for skills development in regenerative and sustainable farming.
However, multiple farming organisations have voiced their concerns over the farming budget, warning that while figures appear stable, the allocation falls short when rising costs and long-term certainty are taken into account.
NFU
National Farmers’ Union Scotland (NFUS) stated that the budget “largely flatlines” support for farmers and crofters, providing certainty for one year but a failing to address “real terms declines, given rising costs”.
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.”
While the NFUS welcomed the return of the £26 million for the Agricultural Modernisation Fund, the union cautioned that static funding for schemes, such as the Basic Payment Scheme, Greening, Less Favoured Area Support, and Voluntary Coupled Support, effectively amounts to a real terms decline in support once inflation and increasing input costs are taken into account.
The union also noted that modest increases to the Agri-Environment Climate Scheme fall short of the level of investment required to meet climate and nature action.
NFUS did, however, welcome the Scottish government’s longer-term spending outlook to 2028/2029 for agricultural support, which follows the three-year line of sight provided by the UK Government’s Spending Review last June.
“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,” Connon added.
NSA
Similar concerns were echoed by the National Sheep Association (NSA) Scotland, which shared its “conflicting feelings” about what the budget will mean for sheep farmers.
While core support has been maintained and capital funding increased through the Agricultural Modernisation Fund, NSA Scotland said that the budget lacks multi-year certainty and strategic direction.
NSA Scotland policy officer Faye Bryce highlighted that payments have not increased in line with inflation, despite ongoing pressures in the farming sector.
Cash figures look steady, but inflation means next year’s support is similar to that of two years ago,” she explained.
Analysis by NSA Scotland showed that while agricultural support peaked in 2025, funding for 2026/2027 falls back to roughly 2024/2025 levels in real terms once inflation is accounted for.
The farming organisation also raised concerns around the lack of clarity on predator management, infrastructure schemes, and measures to reverse decline in the national sheep flock, alongside other challenges such as inheritance tax changes and abattoir viability.
