Scottish farming leaders have urged ministers to use the 2026–27 Scottish budget to deliver a major uplift in agricultural funding, warning that continued real-terms cuts risk undermining food security, climate delivery and rural jobs at a critical time for the sector.
As the backbone of Scotland’s £19 billion food and drink industry, agriculture plays a central role in supporting employment, driving exports and ensuring resilient domestic production.
NFU Scotland says the budget on 13 January 2026 is a pivotal moment, coming as the government prepares for the next phase of agricultural reform and rising expectations on climate and nature targets.
The union is calling for an uplift of around £90 million to the Agriculture and Rural Economy Budget, arguing that current support is not keeping pace with inflation or the growing responsibilities placed on farms and crofts.
NFU Scotland President Andrew Connon said farming remained “the first link in a globally renowned food and drink sector”, adding that with the right backing the industry could “grow the economy, drive exports, secure food supply chains and deliver on climate and nature goals”.
But he warned that “the current funding model isn’t keeping pace with expectations or inflation” and stressed that the Budget “must change that”.
To illustrate the wider economic value, NFU Scotland highlights that every pound invested in farming generates around £6 in output, with farms spending millions each year across local supply chains. This activity, it notes, is vital for fragile and remote rural areas where few alternative industries exist.
The union also argues that maintaining strong domestic production reduces reliance on imports and prevents Scotland’s environmental footprint being shifted overseas.
With more than 70% of Scotland’s land managed by farmers and crofters, NFU Scotland says producers are uniquely positioned to help deliver national climate and biodiversity goals—but cannot shoulder the burden without stable support.
Against this backdrop, ministers are being urged to prioritise agriculture by providing multi-year funding certainty, ring-fencing budgets to prevent dilution, guaranteeing that at least 70% of funds go to direct support during transition, and delivering the £26 million Future Farming Investment Scheme.
Connon said: “Investing in farming is not a cost, it’s a catalyst for wider economic, environmental and social return.” He added that long-term prosperity for rural Scotland depends on agriculture being placed “at the heart of the country’s economic strategy”.
With the budget approaching, the union says it now awaits a clear signal that government intends to back the sector at a level equal to the ambitions it is asking farmers to meet.
