A large part of this, at least north of the border, comes via the Agriculture and Rural Communities (Scotland) Bill.
While the bill’s set to be the basis for future policy in Scotland, it’s at an early stage and many details are not yet worked out. That said, it’s likely those in the sector will need to move fast to be in a strong position to access the highest levels of financial support under the new framework — which the bill allows ministers to devise and implement.
Here’s what we know so far.
The bill — the background
The bill covers three specific strands —
A duty on Scottish ministers to produce a five-year rural support plan
It gives ministers the powers to create a new payment scheme as well as modify the existing CAP rules while they’re still in force over the transition period
Allows ministers to put in place measures to support their agricultural plan including continuous professional development, animal welfare and guidance on sustainability and regenerative agriculture
It’s set to be adopted this summer, and implemented from 2026.
But what does it mean in practice for those in the farming community?
Because much of the detail will be fleshed out through secondary legislation and codes of practice, the detail is rather thin, but it does look as though those likely to receive the highest payments will have to undertake a comprehensive programme of continuous professional development (CPD) or take part in initiatives such as knowledge exchanges.
Financial support framework
The Scottish Government’s Vision for Agriculture includes increasing adoption of sustainable and regenerative agricultural practices, nature restoration and the production of high-quality food.
Underpinning that, one of the five parts of the bill focuses on the financial support framework and gives ministers powers to make payments under four tiers. These tiers are detailed in the explanatory note and policy memorandum.
Supported activities fall under five categories —
Agriculture, food and drink
Forestry
Rural communities and economy
Rural land management and the environment
Administrative and technical support and monitoring
At the NFUS AGM the Scottish Government confirmed £61million of deferred convergence funding will be returned to the Scottish agricultural budget and at least 70% of that budget provision would be put into tier 1 and tier 2 from 2027.
Specifically those tiers are —
Tier 1 — Base level direct payment — entry level payment with minimum production standards, including environmental and health and welfare
Tier 2 — Enhanced level direct payment — covers additional activities including climate change mitigation practices
Tier 3 may be reliant on meeting the first two tiers and is an indirect payment for “specific-indictor nature and/or climate improvement undertakings” in relation to the vision policy outcomes.
Tier 4 focuses on indirect payments for the likes of continuing professional development (CPD), advice, and knowledge exchange.
What now?
The transition period from the CAP regime is expected to last around two to three years, but we’d expect to see new conditions being added to the existing scheme by next year.
Fundamentally though, more clarity is needed.
Stage one of the bill is set to conclude in a matter of weeks, before then a series of roundtables and evidence sessions are scheduled, including the Scottish Parliament Rural Affairs and Islands Committee meetings with land managers and community representatives.
It’s worth bearing in mind too that — as with all legislation — the final result can look much different than its earlier stages.
That said, if you receive Basic Payment Scheme (BPS) payments, now is the time to consider what tier you might be eligible for under the new scheme and take appropriate steps, such as a risk analysis of your current operations, to assess any potential animal health and welfare, environmental, sustainability and natural capital opportunities and gaps there may be.
Looking at this now will help ensure you’re on a sound footing for receiving the maximum amount of financial support possible in due course.
Watch this space for more commentary as more detail becomes public.
Plus, you can read an earlier piece on the Scottish Government’s plans for agricultural reform from my colleague Emily Flett-Grant.