Scottish arable growers face exit without fairer crop contracts, union warns

A UK Government consultation could reshape how crop contracts operate across Scotland
A UK Government consultation could reshape how crop contracts operate across Scotland

Scottish arable growers are being warned that without urgent reform, long-standing imbalances in the combinable crops supply chain could force farmers out of production.

The warning comes as the government earlier this month launched a consultation examining contractual practice and fairness across the wheat, barley, oats and oilseed rape sectors.

The review is seeking views from farmers, traders and processors on how contracts operate, amid growing concern that risk is routinely pushed down the supply chain while returns fail to reach the farmgate.

NFU Scotland vice-president Robert Neill said the consultation marked a crucial moment for the sector, adding that while the move was welcome, “the message from our members is clear – words must now lead to meaningful reform. For too long, growers have shouldered the risk in an increasingly dysfunctional market.”

The consultation follows one of the most difficult harvests in recent years. After a dry spring and summer, growers faced intense pressure, particularly in malting barley, with many seeing crops rejected after testing or sold at sharply reduced prices if strict specifications were not met. In some cases, producers say consignments have been turned away under unclear criteria, leaving them to absorb losses late in the season.

Neill said the current system was failing to reward quality. “Malting barley is a premium product, but that premium is no longer reaching the farmgate,” he said. “Growers are being left to carry the can for decisions made beyond their control, whether it’s vague contract wording, inconsistent testing standards, or an unwillingness to share risk.”

NFU Scotland has also highlighted pressure further along the supply chain, with some maltsters experiencing contracts being withdrawn unexpectedly. The union says this uncertainty is feeding back to primary producers and underlines the need for greater coordination and shared responsibility between growers, processors and end users.

The organisation has long argued for clearer and fairer crop contracts, including improvements to sampling procedures, agreed standards, dispute resolution and pricing mechanisms.

Those priorities are reflected in the government’s review, which NFU Scotland says gives growers a rare opportunity to influence meaningful change at a time of volatile global markets and rising input costs.

There are already signs the imbalance is affecting cropping decisions. NFU Scotland warns that some growers are moving away from spring barley, particularly malting varieties, in favour of oilseed rape and oats. The shift raises concerns for the Scotch whisky industry, which depends heavily on a stable domestic supply of high-quality malting barley.

Jack Stevenson, the union's combinable crops chair, said the risks extended far beyond individual farms. “Barley and other combinable crops are the backbone of arable farming in Scotland,” he said. “But without change, many growers will simply walk away. That has serious implications for rural economies, and iconic industries like Scotch whisky.”

Recent engagement between NFU Scotland, the UK trade and the Maltsters Association of Great Britain has reinforced concerns that existing practices are unsustainable, particularly as margins tighten and growers face mounting cost pressures.

The union is calling for clear and enforceable contracts, fair mechanisms for resolving disputes, proportionate testing and rejection processes, and greater collaboration across the supply chain. It is also seeking a long-term commitment from maltsters and distillers to back Scottish growers.

Fair Dealing Obligations form a central part of NFU Scotland’s wider push for supply chain reform, alongside ongoing engagement with government to avoid unintended consequences in other sectors.

Neill urged the industry to act. “We’re calling on the whole supply chain, from processors to distillers, to step up,” he said. “The Scottish farming industry is prepared to innovate, adapt and lead. But we need people to work with us, not make life harder.”