Fertiliser tax fears loom as Scottish growers brace for 'leaner times'

Scottish arable growers have been warned that rising policy costs and volatile markets could squeeze margins further, as experts flagged fertiliser taxes and regulatory divergence among the biggest threats facing the sector.

More than 200 farmers gathered in Perth for the 40th annual Scottish Agronomy conference, held under the theme Prospering in Leaner Times, to assess how businesses can remain competitive amid tightening economics.

While input costs have eased from recent highs, speakers cautioned that fresh pressures are looming — notably the UK’s proposed Carbon Border Adjustment Mechanism (CBAM), expected to apply to imported fertiliser from next year.

Professor Paul Wilson, director of the Centre for Food Policy and Foresight at the University of Nottingham, warned that the mechanism could increase costs for UK growers if not carefully aligned with wider trade policy.

CBAM is designed to impose a carbon-related charge on certain imports, including fertiliser, to prevent carbon leakage. However, unless equivalent measures apply to imported food, Professor Wilson suggested UK producers risk being placed at a competitive disadvantage to overseas suppliers operating under less stringent environmental standards.

He also urged growers to think carefully about carbon markets, arguing that retaining carbon credits within their own businesses may better position them for future policy demands than selling them externally.

The economic backdrop formed one pillar of the conference. The other was innovation.

Ben Abell, head of agronomy at Dyson Farming, outlined how the business — which grows wheat, barley, potatoes, maize, peas and rye across 14,000 hectares in England — continually experiments with new systems and technologies to drive efficiency.

Embedding marginal gains, he suggested, will be critical as margins tighten.

Scientific advances were also highlighted as part of a broader push to build resilience.

Dr Aoife O’Driscoll, senior plant specialist in plant pathology at NIAB, emphasised the importance of integrating next-generation IPM approaches, combining agronomic innovation, biological controls and genomic prediction models to manage disease pressure sustainably.

Meanwhile, Dr Ewen Mullins, head of crop science at Teagasc, pointed to growing momentum around novel plant breeding techniques.

Recent moves within the EU to relax regulation on gene-edited crops could accelerate the development of new varieties across parts of Europe. The shift contrasts with ongoing regulatory divergence across UK nations, adding another layer of complexity for growers navigating post-Brexit policy frameworks.

Scottish Agronomy managing director Adam Christie said the event gave farmers a rare opportunity to look beyond immediate fieldwork pressures.

“The conference is an opportunity for growers to step back from the day-to-day of the farm, meet up with other growers and get an insight into the bigger picture from a great line up of speakers with different perspectives and areas of expertise,” he said.

Despite depressed markets and a challenging, wet start to the year, he noted there had been “a great buzz in the room” and “real positivity which is very encouraging to see”.

“With what we’ve heard during the course of the day and the results from our trials, there’s plenty to think about,” he added, signalling a focus on practical application in the season ahead.

The conference also marked a milestone year for the farmer-owned co-operative, which was founded 40 years ago by a small group seeking independent agronomy advice and now counts 240 members.

Attention also turned to the next generation.

The first George Lawrie Bursary recipients — Cameron Smith of Kilted Farming and James Hay of Culfargie Estates — shared insights from a study tour to Texas with the SAYFC Rural Affairs Committee.

Their visit included rice, pecan and cotton enterprises, a lumber operation, cattle stud, poultry processor and a Wagyu beef business.

Beyond technical learnings, they highlighted the pro-business and comparatively light-touch regulatory environment they observed — a contrast not lost on delegates earlier in the day as policy costs and compliance burdens were debated.

As growers weigh rising environmental obligations, uncertain markets and evolving science, the message from Perth was clear: thriving in leaner times will depend on balancing efficiency, innovation and political awareness in equal measure.