Food and Beverage Business

Scottish First Minister affirms that 70% of agricultural funding will be allocated as direct payments

Scottish First Minister affirms that 70% of agricultural funding will be allocated as direct payments 70%, Agriculture, direct payments, first minister, funding, Scotland Food and Beverage Business

At the NFU Scotland conference, Scottish First Minister Humza Yousaf confirmed that at least 70% of the funding envelope from 2027 will be allocated to Tiers 1 and 2 of Scotland’s new agricultural policy. This announcement followed NFU Scotland president Martin Kennedy’s address to conference delegates, in which Kennedy outlined his five requests of the Scottish Government.

In response to Kennedy’s requests, First Minister Humza Yousaf confirmed that funding for Tiers 1 and 2 will constitute a minimum of 70% of the overall funding envelope to support farming, crofting, and land management from 2027. Yousaf also mentioned that funding for the replacement of the Less Favoured Areas Support Scheme will be available through Tier 2 once the replacement scheme is decided.

Yousaf emphasized the need for clarity from the UK Government regarding funding commitments from 2025, stating, “We need certainty from the UK Government about the future of rural funding after 2025. As it stands, we don’t have any idea what the Conservatives, or more likely the incoming Labour Government, are going to do in that regard, so we’ll continue to press Westminster for that.”

Kennedy expressed satisfaction with the First Minister’s announcement, stating, “We welcome the First Minister delivering clarity on future levels of support to be delivered under Scotland’s future agricultural policy. Equally important was the First Minister’s recognition of the economic importance of our sector and his stated ambition that he wants to see our production of high-quality food and drink grow.”
Kennedy highlighted NFU Scotland’s successful lobbying efforts in securing Tier 1 and Tier 2 funding.

He also stressed the importance of funding in Tiers 3 and 4 in providing support for businesses and outlined NFU Scotland’s plan to collaborate with the Government to ensure funding accessibility.

In other news, farmers in Wales have voiced dissatisfaction with the latest consultation on the Sustainable Farming Scheme (SFS). Additional changes faced by farmers include mandatory designation of 10% of the land to wildlife conservation and 10% of the land to planting trees. Many farmers have expressed concerns about the prospect of additional paperwork on top of their workload.

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