NFU Scotland has called on ministers to increase funding for agriculture by £90m as the Budget approaches, warning that now is the time to turn political commitments for farming and crops into action.
The union is calling on the Scottish Government to commit to increased investment in agriculture over a multi-year period, saying agriculture must be recognized as central to Scotland’s economy, environment and food security.
As part of that drive, NFU Scotland is calling on Ministers to keep their promise that at least 70% of Agriculture and Rural Economy (ARE) funding will be allocated as direct support during the agricultural transition years of 2025/26 and 2026/27.
The pledge was made publicly by Chancellor John Swinney MSP at the union’s conference in February, and NFU Scotland says it must now be reflected in the Scottish Budget for 2026-27.
The union believes the spending review will provide the “foresight” and fiscal space needed to deliver the £90m rise. The report said the next Budget will be a key test of whether Scottish agriculture is indeed prioritized within the Government’s wider economic strategy, a benchmark set in NFU Scotland’s new policy strategy and next manifesto due in early 2026.
NFU Scotland chairman Andrew Connon said ministers must now support their ambitions with funding. “The Scottish Government has said it wants rural economies to thrive, food security, climate change response and nature to recover,” he said.
“But none of these ambitions can be achieved without profitable and active farming and crop production. Ministers have made clear commitments for future support and now is the time to honor that promise and put words into action.”
The union warns that failing to increase and protect agricultural funding risks fragmenting supply, failing to meet national targets and preventing rural economies from reaching their potential.
In its submission to the Scottish Budget, NFU Scotland makes the economic case for the investment, highlighting analysis suggesting that every £1 invested in agriculture generates around £6 of wider economic output. The sector supports thousands of local businesses and supports Scotland’s £19bn food and drink industry.
Farmers and crop farmers control over 70% of Scotland’s land and are at the heart of delivering results on food security, climate action and biodiversity. NFU Scotland says it cannot fulfill its role without consistent and reliable support.
Mr Connon said confidence was as important as funding levels. “It’s not just about headline numbers, it’s about confidence,” he said. “We need a stable long-term investment model that supports innovation, provides a platform for growth and leverages private finance. It starts with real increases, protection of the margins and a clear signal from government that agriculture matters.”
NFU Scotland’s budget submission calls for a £90m increase in the ARE budget, multi-year funding certainty, ring-fencing to prevent dilution of agricultural spending, guarantees that at least 70% of funding will go to direct support during the transition period, and full implementation of the £26m future agricultural investment plan.
As the Scottish Budget approaches, NFU Scotland said the coming months will be critical in determining whether agriculture and crops can support the long-term investment needed to support sustainable growth, climate resilience and the prosperity of rural communities.
