Farm leaders have warned that spiralling costs and fragile supply chains are eroding confidence, as NFU Scotland pressed Baroness Minette Batters to put profitability at the centre of her UK-wide review.
The meeting between the union and Baroness Batters in Edinburgh centred on the Farming Profitability Review, which the former NFU president is leading for the UK government and is due to report in October.
She is tasked with identifying the policy, market and structural levers that can help secure financial stability for farm businesses.
NFU Scotland, along with members of the Food and Agriculture Stakeholder Taskforce (FAST), highlighted the pressures facing farming – from soaring input costs and volatile markets to fragile supply chains and uncertainty over long-term support.
The union warned that unless action is taken, farm businesses will face shrinking margins and stalled investment, at a time when confidence in British farming has slumped to a record low.
NFU Scotland President Andrew Connon said: “This was a timely and important meeting given the urgency of improving farm business profitability across the UK.
"Scotland’s farmers and crofters are delivering not just high-quality food, but vital economic, environmental and community value.
"However, margins remain under relentless pressure. Profitability must be front and centre if we are serious about sustainable farming.”
He added that profitability was the foundation for every other expectation placed on farmers, from delivering environmental outcomes to supporting rural communities.
Without viable returns, Connon warned, farms across the country would struggle to invest in innovation, skills or infrastructure.
Baroness Batters said she valued the open dialogue and recognised the unique challenges facing Scotland. She will present recommendations to government this autumn.
Neil Wilson, chair of FAST, emphasised that profitability “underpins everything: from investment in innovation to the delivery of environmental and community outcomes”.
He said the review must deliver practical, impactful proposals that reflect the diversity of farming systems across the UK.
The UK government’s response to it is set to be closely watched by farm leaders, many of whom warn that the industry's future viability depends on it.
Connon concluded: “This review comes at a pivotal moment. We thank Minette for making the trip and for listening closely to Scottish concerns.
"NFU Scotland is fully committed to working with her and the review team to ensure that profitability – the foundation of any sustainable agricultural future – is properly understood and prioritised.”
Baroness Batters intends to present her report to Defra in early October and is requesting submissions from farmers by emailing farmingprofitabilityreview@defra.gov.uk.
