Two Scottish Farming Co-ops Plan Major Merger to Form £100m Rural Powerhouse

A merger between two of Scotland’s biggest farming co-operatives could reshape the agricultural landscape for over 4,000 farmers and crofters, creating one of the largest machinery rings in the UK with a turnover topping £100 million.

If approved next month, Laurencekirk-based Ringlink Scotland Ltd and Highland Business Services Ltd (HBS) will unite under a single name, bringing together decades of resource-pooling expertise across the Highlands, Argyll, Angus, and Fife. For farmers facing rising costs and labour shortages, this could be a timely shift.

Why this merger matters now

Machinery rings aren’t new in Scotland. But this proposed merger feels like a nod to both heritage and the future.

Born out of necessity in the 1970s, Scotland’s machinery rings were a simple but effective idea: farmers teaming up to share machinery, labour, and services. It meant fewer upfront costs, less duplication, and better use of expensive kit. The concept stuck.

But modern agriculture brings modern problems—climate uncertainty, staff gaps, soaring equipment prices, and tighter margins. That’s where this merger comes in.

“We’re not just protecting our services,” said Ringlink Scotland chairman James Porter. “We’re setting ourselves up to grow.”

tractor harvesting grain scottish farm machinery ring wikimedia

What’s actually changing?

The deal, if voted through by HBS members on July 11, would legally take effect on August 1. The new business would keep the name Ringlink Scotland but expand its footprint significantly.

That includes:

  • Over 4,000 members, up from about 2,700 for Ringlink and 1,500 for HBS

  • Around 450 combined staff

  • Continued office presence in Cupar, Coupar Angus, Oldmeldrum, Elgin—and likely some HBS locations too

  • Annual turnover projected at £100 million or more

“We’ll keep the best of both,” said HBS chairwoman Anne Rae Macdonald. “More resource, more support, less waste.”

She added that the new entity would also cut overlapping expenses in admin, software, and legal costs. A business-savvy move in a sector where every penny matters.

Machinery rings: A look at how they work

Let’s break it down simply.

A machinery ring acts as a kind of mutual club. Members—mostly farmers—can:

  • Share use of tractors, harvesters, balers, spreaders

  • Hire labour during busy periods like lambing or harvest

  • Access discounted services, such as fuel deliveries or insurance deals

  • Reduce downtime and spread operating costs

Here’s a quick comparison:

Feature Individual Farm Machinery Ring Member
Combine Harvester Cost £300,000 upfront Pay-per-use or shared
Labour Access Hire directly Centralised network
Risk of Downtime High Lower – shared pool
Support Variable Organised and local

It’s not just about machines. Rings also become social and support hubs. “Sometimes you just need to ask a neighbour how they did it,” says Alasdair, a crofter near Dingwall. “The ring’s good for that.”

Timing, turf and some nerves too

Change brings opportunity. It also brings uncertainty.

While the merger has been described as “logical” by both boards, not everyone’s convinced just yet. Some members—especially crofters in more remote parts—worry about losing local focus.

“There’s a fear we’ll become a number, not a name,” one HBS member said privately. “They’ve promised support will stay local, but we need to see it.”

Others question the long-term strategy. Will the enlarged co-op look beyond farming? Could they diversify into renewables or agri-tech?

Ringlink’s leadership hasn’t confirmed plans beyond the merger—but insiders say there’s “plenty of thinking going on.”

And then there’s the staff. 450 jobs are on the line—not in a bad way, but because change always creates shake-ups. The boards say they’re working closely with teams to minimise disruption and keep roles secure.

Scotland’s growing rural co-op map

There are around 30 machinery rings in the UK, and roughly a dozen in Scotland alone. The first, Borders Machinery Ring, launched in 1987. Ringlink Scotland followed a year later and has since become one of the biggest.

These groups have stayed surprisingly resilient while other rural networks shrank. A mix of community trust and practical savings has kept them going.

Here’s a snapshot of key Scottish rings:

  • Borders Machinery Ring (1987)

  • Ringlink Scotland (1988)

  • Highland Business Services (1990s)

  • East of Scotland Farmers

  • Moray Machinery Ring

Not all are planning to merge—but there’s growing chatter in the sector about consolidation.

“The economics favour it,” said a senior figure from the National Farmers Union Scotland. “Shared overheads, broader member bases, and better bargaining power.”

What’s next?

If members approve the merger on July 11, there’ll be a few hectic weeks of integration before the new Ringlink Scotland launches August 1.

There’s optimism in the air, but a few crossed fingers too.

Farmers are watching closely—not just in the north but across Scotland. Because if this merger works, it could spark a new wave of rural co-op growth. And in farming, as ever, there’s strength in numbers.

By Axel Piper

Axel Piper is a renowned news writer based in Scotland, known for his insightful coverage of all the trending news stories. With his finger on the pulse of Scotland's ever-changing landscape, Axel brings the latest updates and breaking news to readers across the nation. His extensive knowledge of current affairs, combined with his impeccable research skills, allows him to provide accurate and comprehensive reporting on a wide range of topics. From politics to entertainment, sports to technology, Axel's articles are engaging and informative, keeping readers informed and up to date.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts