Scotland seeks to recognise agriculture as a key pillar of the economy

NFU Scotland has called on ministers to increase funding for agriculture by £90 million in the run-up to the Budget, warning that now is the time to translate political promises into action for farming and smallholders.

The union is pressing the Scottish Government to commit to increasing multi-year and targeted investment in agriculture, arguing that agriculture must be recognised as a key pillar of Scotland's economy, environment and food security.

According to the British press, NFU Scotland is calling on Ministers to honour their commitment that at least 70% of Agriculture and Rural Economy (ARE) funding will be spent on direct support for agriculture. This commitment was made public by First Minister John Swinney MSP at the union's conference in February and NFU Scotland says it must now be reflected in the Scottish Budget for 2026-27.

The union believes the forthcoming Budget will be a key test of whether Scottish agriculture is truly a priority in the government's wider economic strategy, as set out in NFU Scotland's new policy strategy, which is due to be published in early 2026.

NFU Scotland President Andrew Connon said ministers must now back up ambition with funding. The Scottish Government says it wants a thriving rural economy, food security, climate protection and nature restoration,– he said.

„But none of these ambitions can be realised without profitable, vibrant agriculture and small farms. Ministers have made a clear public commitment to future support, now is the time to follow through on that promise and turn words into action.“

The Union warned that failure to increase and protect agricultural funding risks fragmentation of support, failure to meet national targets, and failure of the rural economy to realise its potential.

Analysis shows that for every £1 invested in agriculture, around £6 in wider economic benefits are generated. The sector supports thousands of rural businesses and is at the heart of Scotland's £19 billion food and drink industry.

Farmers and smallholders own over 70% of Scotland's land and are key to food security, climate action and biodiversity. NFU Scotland argues that this role cannot be fulfilled without consistent and reliable support.

And Mr Connon said that trust is as important as funding levels. „It's not just the numbers, it's the trust“, – he said. „We need a stable, long-term investment model that can support innovation, provide the basis for growth and attract private investment. This starts with real increases, clear protections and a clear signal from government that agriculture matters.“