Early payments under Scotland’s Less Favoured Area Support Scheme (LFASS) have begun landing in bank accounts, offering a crucial cash-flow boost for farmers and crofters facing rising input costs, volatile weather and increasingly tight margins.
The scheme, which carries a budget of £65.5 million, supports agricultural businesses working in Scotland’s most disadvantaged upland and remote regions.
Around 86% of Scotland’s actively farmed land — some five million hectares — is classified as Less Favoured Area (LFA), underpinning the sheep and beef systems that make up the backbone of rural Scotland.
NFU Scotland said the early payment run would provide “much-needed” stability for producers operating on challenging terrain and in harsh conditions.
In total, 9,741 businesses will receive LFASS support worth £56.5 million in the coming days. LFA farms and crofts remain central to Scotland’s red meat industry, producing around 79% of combined calf and lamb output in 2024.
Estimated cattle and sheep sales from LFA areas totalled around £750 million last year, rising to £1.04 billion when downstream supply-chain activity is included. In many fragile rural areas, the LFASS helps sustain local jobs, services and communities through the winter months.
NFU Scotland reiterated that LFASS is vital in preventing land abandonment, maintaining active land management and supporting the resilience of remote communities.
The union said grazing in LFAs plays a key role in maintaining habitats, supporting biodiversity and preserving landscapes that are central to Scotland’s rural identity and tourism economy.
While welcoming the continuation of LFASS payments and the Scottish government’s commitment to avoiding a funding “cliff-edge”, NFU Scotland expressed concern over the consistent underspend within the LFASS budget. It has written to Cabinet Secretary Mairi Gougeon MSP seeking a meeting to discuss the issue and said it is pressing for a response.
As Scotland transitions towards a new agricultural support framework, NFU Scotland emphasised that direct support must remain a core element and that targeted LFA assistance must be protected.
The union said its LFA Committee will continue working to ensure future support rewards active land stewardship, strengthens business viability and sustains rural communities while delivering outcomes for climate and nature.
NFU Scotland said continued LFASS-style support will be essential if upland farms, crofts and the communities that rely on them are to remain viable in the years ahead.
