Farmers and crofters across Scotland are gearing up to rally outside the Scottish Parliament in Edinburgh, voicing concerns over the future of their industry. The gathering highlights two pressing issues: a call for increased agricultural funding and opposition to proposed changes to inheritance tax relief affecting farmland.
Funding at the Forefront
The rally, organized by farming union NFU Scotland, comes ahead of the Scottish Government’s 2025/26 Budget announcement next week. Farmers are urging the government to boost agricultural support funding by £50 million, bringing the total to £776 million. They also seek long-term financial commitments, reminiscent of the stability provided under the EU’s Common Agricultural Policy (CAP), which offered seven-year funding cycles.
Since Brexit, annual budget allocations have replaced CAP’s multi-year frameworks, leaving the sector in financial uncertainty. NFU Scotland’s Director of Policy, Jonnie Hall, emphasized the potential benefits of increased funding.
“A modest budget increase in the agricultural portfolio would deliver a strong return on investment, fostering employment and growth in areas with limited economic alternatives while advancing climate and nature goals,” Hall stated.
Inheritance Tax Changes Spark Alarm
Adding to their concerns are changes to agricultural relief on inheritance tax, announced by UK Chancellor Rachel Reeves in October. Under the new plan, funding for farm subsidies will no longer be ringfenced for devolved nations. Instead, it will be integrated into block grants under the Barnett formula, allowing governments to reallocate funds to other sectors like health or education.
The changes could have severe implications for family-run farms. Aberdeenshire livestock farmer Nicola Wordie, 26, expressed her fears about the future of her family’s farm. Following her mother’s sudden death earlier this year, Nicola worries that inheritance tax adjustments could force her family to sell significant portions of their land, jeopardizing the farm’s profitability.
“It could be the end of this family farm as we know it,” Nicola said, reflecting on the emotional and financial challenges ahead.
Political and Industry Response
The Scottish Government has been critical of the UK’s decision. Rural Affairs Secretary Mairi Gougeon reiterated her administration’s support for farmers and crofters, arguing that the inheritance tax changes would penalize those vital to Scotland’s rural economy and food production.
“The Scottish Government is unequivocal in our support for Scotland’s farmers and crofters,” Gougeon stated, adding that the Budget will be a critical test of the government’s commitment to the sector.
The UK Government, however, defended its stance, claiming that only the wealthiest farmers would be affected by the inheritance tax reforms.
Scotland’s Agricultural Landscape
Agriculture is a cornerstone of Scotland’s economy, employing approximately 67,000 people directly and supporting another 360,000 indirectly. Much of the farmland is dedicated to grazing cattle and sheep, underscoring the rural sector’s reliance on stable funding and policy frameworks.
Recent financial pressures, such as reallocations from nature restoration budgets to local authority pay settlements, have exacerbated concerns. Farmers are also calling for the restoration of £46 million previously removed from unallocated funds in past budgets.
What’s Next?
Finance Secretary Shona Robison will deliver Scotland’s 2025/26 Budget next Wednesday, which could bring clarity to agricultural funding. Meanwhile, the rally will feature speeches from politicians, including Gougeon, and members of other political parties, as farming leaders push for actionable solutions to secure the industry’s future.
