Agribusiness News March 2025 – Policy Brief

Preparing for Sustainable Farming

The Scottish Government has extended the Preparing for Sustainable Farming payments for a further year.

Farmers and crofters can access funding for soil analysis, carbon audits, and animal health and welfare interventions during 2025, with payment claims being accepted  up until the end of February 2026.

For full details on eligibility and payment rates, please see online at Preparing for Sustainable Farming: Full Scheme Guidance.

Restoring Scotland’s Natural Environment

Legislative proposals to help restore nature and protect biodiversity in Scotland have been introduced to Parliament. The legislation is a key part of the Scottish Government’s Strategic Framework for Biodiversity.

The Natural Environment (Scotland) Bill will place a duty on Ministers to set legally-binding nature restoration targets and will modernise how national parks and deer are managed.  The Bill proposes actions to tackle the twin crises of climate change and nature loss with measures to protect biodiversity and reduce harmful carbon emissions.

Delivering for Rural Scotland

As the Scottish Government is committed to publishing a plan setting out how all parts of the Government are delivering for Scotland’s rural communities by the end of the current Parliament; they have launched a survey to ask people living and working in rural communities what the government priorities should be to improve their lives.

The survey will help to shape the Rural Delivery Plan which will cover a range of areas such as agriculture, transport, housing, health and social care, marine, land reform, population, skills, digital connectivity and economic development.

To take part in the survey, please click on this link: Rural Delivery Plan.

The survey closes on the 17^th of March 2025.

Supporting Farmers, Crofters and Food Producers

As part of the Scottish Government’s Small Producers Pilot Fund, which has provided a total of £256,500 to support private kill abattoirs in Shetland, Barra, Dingwall, Mull and Wishaw; the Orkney Auction Mart has been awarded £15,000 of funding to help build a business case for a new, fit-for-purpose processing plant.

By creating more localised supply chains, the Small Producers Pilot Fund aims to increase the proportion of food grown and processed by smallholders and small farms, and consumed within their local community.

Brexit Trade Barriers

Five years on from when the UK left the European Union, analysis published by the Office of the Chief Economic Advisor has estimated Brexit trade barriers could impact Scotland’s economy by £4 billion.  This estimated economic cost is from the reduction in trade alone – not counting changes to productivity, investment, or migration.

According to the Trade Modelling Report, Scottish exports could be lower by 7.2% or £3 billion compared to continued membership of the EU.

The chemical and pharmaceutical sector is estimated to be one of the hardest hit by post-Brexit trade barriers, with an estimated 9.1% reduction in output, followed by the computer and electronics at 7.7%.  The textiles, wood and paper sector which includes tanning & dressing of leather products is predicted to fall by 5.9%. The 4.9% output drop estimated for the agrifood sector represents a loss of £827 million.

The Scottish Government’s Brexit Trade Modelling Report analyses the impact of the UK’s post-Brexit trade agreements on Scotland’s economy and the expected effect of actual or potential Free Trade Agreements between the UK and Australia, India, Switzerland and Turkey, as well as the Trade and Cooperation Agreement between the UK and EU.

While the analysis includes the expectation that, as a result of FTAs with Australia and India exports of prepared animal feeds will increase by 0.3% equivalent to £34 million; processing & preserved meat exports will fall by 0.1% equivalent to £26m.

However, it should be noted that the report makes estimates based on the impact of trade barriers and does not account for changes in productivity and investment due to Brexit.

Christine Beaton, christine.beaton@sac.co.uk

 

Key Dates

Date	Point to Note
15th March	15th March Single Application Form 2025 opens online. Closes on 15th of May 2025
15th May	Single Application Form 2025 closes online at Midnight