The 5 Scottish Budget priorities for farmers under 'intense financial pressure'
The farming community in Scotland has set out five key priorities
SNP ministers have been warned farmers are becoming frustrated over the “unfair” distribution of government grants, as a renewed call was made for a multi-year funding commitment.
The National Farmers' Union of Scotland [NFUS] has set out five priorities for the upcoming Scottish Budget, which will be unveiled on January 13.
The organisation is asking for an increased agriculture budget, given rising costs and growing demands on the sector, as well as protection of farm support.
The wish list has been drawn up following criticism of the Future Farming Investment Scheme (FFIS) run by the Scottish Government.
The £21 million fund had been aimed at boosting productivity, sustainability and efficiency within the agriculture sector.
But NFUS said some applicants had been left disappointed, as it was revealed about 3,500 applications out of more than 7,700 submitted in total did not meet the eligibility criteria.
NFU Scotland president Andrew Connon, who took part in a debate alongside Agriculture and Connectivity Minister Jim Fairlie at the AgriScot 2025 convention on Wednesday, urged the Scottish Government to deliver a “fair approach”.
The union is also asking for a guarantee that at least 70 per cent of support goes to active farming and crofting, as well as improved targeting and transparency around the FFIS.
Mr Connon said “The message from AgriScot is loud and clear – Scottish agriculture needs a Budget that delivers. Farmers and crofters are stepping up on food security, climate targets and biodiversity, but they’re doing so under intense financial pressure.
“It’s time for the Scottish Government to deliver its side of the bargain, with a clear, multi-annual funding commitment, targeted investment through schemes like the Future Farming Investment Scheme, and a fair approach to new rules and regulations.”
He added: “Farmers and crofters are ready to deliver for Scotland – on food, climate, nature and rural jobs. But we can’t deliver on promises without the policies and funding to match.
“We urge the Scottish Government to back its words with action in the upcoming Budget and give our industry the confidence to invest in the future.”
Mr Connon reiterated NFUS’s deep concerns over UK government proposals to reform inheritance tax, describing them as “misguided, damaging and unfair”.
The plans to tax inherited agricultural assets worth more than £1 million at a rate of 20 per cent were announced in Chancellor Rachel Reeves’ first UK Budget last year.
“These changes risk penalising succession, dismantling family farms and destabilising rural businesses,” he said. “This is not just a technical tax issue, it’s about the long-term future of Scottish food production.”
Ms Reeves will deliver the UK Budget next week.
Mr Fairlie told the AgriScot conference on the FFIS: “The scheme was competitive, with over 7,700 applications worth in excess of £77 million. I know there will be many who applied who will have been disappointed not to be successful in this round. There is no getting away from that.
“Going forward we will review the scheme to better understand what worked and where improvement could be made, to ensure it is more tightly targeted for any future rounds of the scheme.”
The minister added in a statement: “In stark contrast to other parts of the UK, the Scottish Government has a strong record of delivering a range of support schemes to our farming and crofting sectors.
“We deeply oppose the changes the UK government has made that are putting the future of many family farms at risk, not least the ill-thought through changes to inheritance tax. We, alongside the sector, continue to push for multi-year funding agreements that would allow both government and farmers to plan more effectively.
“Where we have the powers to protect and support the agriculture industry, we are doing just that with the most generous direct support package in UK, showing that policy made in Scotland works for farmers.”
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