NFUS President Andrew Connon said farmers need a policy environment that supports food production
NFU Scotland has urged the UK government to reverse inheritance tax changes, protect red diesel relief and reconsider incoming carbon border charges as it took its farming priorities to the Labour Party Conference in Liverpool.
Inheritance tax was one of the main issues raised with ministers, alongside concerns over farm costs, imports and future investment.
NFU Scotland wants the changes to Agricultural Property Relief and Business Property Relief, first announced in 2024 and subsequently revised, to be fully reversed.
Since 6 April 2026, a £2.5 million allowance has applied to qualifying agricultural and business property receiving 100% inheritance tax relief, with 50% relief applying above that level. Any unused allowance can be transferred to a surviving spouse or civil partner.
NFU Scotland is also seeking policies it says will encourage investment and support continued domestic food production.
Rising input costs were another major concern, particularly energy, fuel and fertiliser. The union wants reduced fuel duty rates for red diesel to be maintained and has called for the Carbon Border Adjustment Mechanism, known as CBAM, to be paused and reviewed.
CBAM is due to take effect from 1 January 2027 and will put a carbon price on specified imports, including fertiliser and other carbon-intensive goods.
The UK government says the measure is intended to ensure certain imported goods face a comparable carbon price to those produced domestically and to reduce the risk of carbon-intensive production moving overseas.
NFU Scotland is concerned about the potential impact on agricultural input costs, particularly fertiliser, and wants the policy reconsidered before it comes into force.
Imports were also high on the agenda, with the union arguing that Scottish and UK farmers should not be placed at a competitive disadvantage by food produced overseas under different standards or production conditions.
NFU Scotland said it has written to the government outlining its concerns and will continue pressing for action to support domestic producers.
Representatives met politicians including Scotland Secretary Douglas Alexander, Environment Secretary Dame Angela Eagle, Defra Minister Stephen Morgan and Scotland Office Minister Melanie Ward during the conference. Their current ministerial roles were confirmed following the July 2026 government appointments.
NFU Scotland President Andrew Connon said: “We have had a large number of constructive conversations with Ministers, MPs and MSPs in Liverpool and have been clear about the pressures facing Scottish farming.”
He added: “Farmers and crofters want to continue producing high-quality food here in Scotland, but they need a policy and trading environment that supports domestic production rather than making it harder.”
The union said it will continue engaging with the government and politicians from across the political spectrum as decisions on tax, trade and farm costs approach.
Connon said: “We will continue to engage with UK government and politicians across all parties to ensure the priorities of Scottish agriculture are understood and acted upon.”
The UK budget is due to be delivered on 28 October 2026.