Rural News: The Future of Agricultural Support in Scotland

Uncertainty over the shape of future agricultural support remains, although we are starting to get a few ideas of what it might look like. Scottish Government published their “Agricultural Reform Route Map” on the 10th February detailing the “Agricultural Support Package Beyond 2025”. Mike Halliday, Rural Consultant based in our Dumfries office explains what we know so far.

The expectation is that from 2026 onwards we will be operating under a new support framework.

The Vision document divides support in to four different tiers:

1. Base Payment, to support active farming and food producers.
2. Enhanced Payment, for businesses that are highly effective in reducing greenhouse gas emissions & nature restoration and enhancement.
3. Elective Payment, which could be akin to current competitive agrienvironment schemes. This tier also includes “innovation support” & “supply chain support."
4. Complementary Support, which includes: people development; measurement tools (nature & greenhouse gases); tree planting; peatland restoration; and Agricultural Transformation Fund.

It should be noted that Scottish Government are looking for further “Conditionality” to be introduced in the 2025 Single Application Form calendar year, while retaining the present three region model. Greening, Cross Compliance requirements and the completion of a Whole Farm Plan are currently being considered, but no decisions have been taken yet. Tier 2 (Enhanced Support) will be launched in 2026, followed by Tier 3 (Elective) and Tier 4 (Complementary) from 2027.

To deliver Scottish Government’s Vision for Agriculture, the tiered model is meant to provide support to farmers and land managers to achieve:

• High quality food production and sustainable production chains.
• Reduced Green House Gas emissions from the agriculture sector.
• A substantial regeneration in biodiversity, ecosystems and soli health.
• Just transition – creating thriving rural island communities.

Also on the 10th February, a further document was published containing a List of Measures which are to be introduced to assist in achieving Scottish Government’s Vision for Agriculture. Space is too limited here to go any to any depth, but measures include (but are not limited to):

• Winter Cover (arable)
• Minimum/No Tilage
• Efficient / Reduced use of inorganic fertilisers / lime / synthetic pesticides
• Enhancing existing hedge rows
• Manage Grazed Habitats
• Retain Traditional Cattle
• Summer Hill Cattle Grazing
• Improving beef cattle nutrition/ breeding/health
• Improve dairy cattle nutrition/ breeding/health
• Support and incentivise genetic improvement of dairy cattle
• Improving sheep nutrition/breeding/ health
• Efficient Nutrient Management

Scottish Government will continue to work on and refine the List while consulting with steak-holders. It aims to launch the measures in 2026. The Vision document states that there will be “enhanced conditionality of at least half of all funding”. Potentially this could mean that the lions share of funding goes towards measures that help improve the environment and reduce greenhouse gases – critically, as we are currently seeing south of the border, if the measures required are too difficult or expensive to undertake, then we will simply see farmers not take up these options.

If you would like to discuss the above or your funding options in Scotland please contact Mike Halliday, who will be happy to offer some clarity and guidance.