Scottish agricultural support has lost around 27% of its purchasing power since 2014, according to NFU Scotland
Scottish farmers need an extra ÂŁ183 million in annual support to protect food production and restore profitability, NFU Scotland has warned as ministers prepare for December's Budget.
Union president Andrew Connon renewed calls for the agricultural support settlement to rise from approximately ÂŁ677m to ÂŁ860m at the organisation's Autumn Conference on 29 October.
The union wants the increased funding introduced in the 2027–28 Budget and protected against inflation through to 2030 and beyond, arguing that existing support is failing to keep pace with rising costs.
According to NFU Scotland's analysis, agricultural support has lost around 27% of its purchasing power since 2014, while higher fuel, fertiliser, machinery and labour costs continue to squeeze farming margins.
Addressing delegates, Mr Connon warned that farmers and crofters could not be expected to absorb repeated financial pressures without the resources needed to maintain viable businesses.
“Without profitability, we have nothing,” he said.
He argued that genuine resilience meant giving agricultural businesses the financial stability to withstand difficult years, adapt to changing conditions and invest in their future.
Mr Connon also questioned whether current funding reflected the growing demands placed on the sector, including food security, economic growth, climate action and environmental protection.
“Government cannot reasonably expect more from agriculture while providing less in real terms,” he said.
Scottish Cabinet Secretary for Climate Action and Rural Affairs Gillian Martin acknowledged the financial pressures facing farmers during an address to the same conference.
“I know you are frustrated at the impact of inflation on that support. We share that frustration,” she told delegates.
Ms Martin said the Scottish Government had invested more than ÂŁ660m in farming and food production through its most recent budget and remained committed to maintaining direct agricultural payments.
However, she also warned that Scotland's block grant had not been adjusted to reflect inflation, while growing demand for public services was placing further pressure on government finances.
The renewed funding demand follows the UK Budget on 28 October, which NFU Scotland criticised for failing to deliver sufficient support on agricultural costs, taxation and investment.
Although the union welcomed a six-month extension of the red diesel duty reduction and a temporary suspension of tariffs on imported fertiliser, it remains concerned about the potential costs of the Carbon Border Adjustment Mechanism (CBAM).
Mr Connon said greater clarity was needed on how the measures would affect farm businesses and the wider funding available to Scottish agriculture.
“Yesterday's Budget was a missed opportunity to back the people producing our food. That makes the Scottish Government's decisions in December even more important.”
The union argues that agricultural funding should be treated as an investment in domestic food production, rural employment and environmental delivery, rather than simply another area of government expenditure.
Mr Connon highlighted that the agricultural and rural economy budget represents less than 1% of overall Scottish Government spending, despite the sector's importance to food security and rural communities.
The conference also brought confirmation that another round of the Agri-Environment Climate Scheme (AECS) will open in early 2027, while the Scottish Suckler Beef Support Scheme (SSBSS) will continue until 2029.
NFU Scotland welcomed the commitments but is seeking further clarity on the environmental scheme and assurances that farmers will be consulted over changes to suckler beef support requirements.
Mr Connon also renewed calls for emergency assistance for Scottish pig producers, with the union reporting that independent businesses have faced combined losses exceeding ÂŁ1m a month since March.
Despite welcoming an existing ÂŁ2m government support package, the union warned that additional help could be needed to prevent more producers leaving the industry.
The Scottish Government has not committed to NFU Scotland's proposed ÂŁ860m annual settlement, leaving uncertainty over whether the forthcoming Budget will deliver the increase sought by the union.
Attention now turns to 3 December, when ministers are scheduled to publish the 2027–28 Scottish Budget and set out their spending priorities.
NFU Scotland wants the settlement to establish a stronger long-term funding commitment, arguing that restoring agricultural support's purchasing power is essential to protecting farm profitability, food production and the future of Scotland's rural economy.