Scottish farm leaders seek clarity on post-Brexit funding split

NFU Scotland has stated that 70% of the agricultural budget must be allocated as direct support
NFU Scotland has stated that 70% of the agricultural budget must be allocated as direct support

The significant majority of Scotland's post-Brexit agricultural support package must be delivered as direct support through Tiers 1 and 2, NFU Scotland has said.

The ask is in relation to Scotland's farming budget following a consultation from the Agriculture Reform Implementation Oversight Board (ARIOB).

The ARIOB was established to oversee post-Brexit agricultural policy reform in Scotland.

NFU Scotland stated that at least 70% of the budget must be allocated as direct support - known as Tiers 1 and 2 - under the new four-tiered policy framework unique to Scotland.

Of that direct support budget, 70% must then be allocated to Tier 1 and 30% allocated to Tier 2 from 2026 onwards, the union explained.

Both of these two tiers in Scotland's post-Brexit support system aim to support active farming and food producers. Tiers 3 and 4 have more of a focus on land management and the environment.

Scotland’s total agricultural budget is determined by UK Treasury, and Scottish farm leaders have been lobbying for an increased budget to be announced in the upcoming autumn statement.

Once Scotland’s share of that budget is committed to the Scottish government, a further question is how that funding is then allocated across the four Tiers of future support.

NFU Scotland director of policy, Jonnie Hall said the union 'remains unequivocal' in highlighting that the majority of the future support package must be delivered as direct support through Tiers 1 and 2.

“We welcomed the then-First Minister Humza Yousaf’s announcement in February that at least 70% of future Agriculture and Rural Economy (ARE) portfolio funding will be as direct support via Tiers 1 and 2, with Less Favoured Areas support in addition to this.

“As more conditionality will now be attached to Tier 1 payments, starting with a Whole Farm Plan eligibility requirement for the BPS in 2025, we believe that at least 70% of Scotland’s direct support budget must be allocated to Tier 1 with the remaining 30% devoted to Tier 2.

“We have been clear and adamant that retaining 70% in Tier 1 and 30% in Tier 2 will underpin and incentivise agricultural activity and management to drive efficiency and productivity."

He added: “We urge the Scottish government to make an announcement to clarify the funding split for Tiers 1 and 2 at the earliest opportunity and there is no better platform to do so than at our conference next week."