Business and Policy July 2026 – Policy Update

New EU rules on New Genomic Techniques (NGTs) 

The EU recently (17th June 2026) agreed and adopted new rules on New Genomic Techniques (NGTs), including gene-editing technologies, which allow plant breeders to make precise changes to a plant’s DNA without necessarily introducing genes from unrelated species.  

Under the new framework, NGT plants are split into two categories: NGT-1 plants will be treated much like conventionally bred crops and face a simplified approval process, while NGT-2 plants (which involve more complex genetic changes) will continue to be regulated under existing GMO rules.  

The EU says the changes will help breeders develop crops that are more resilient to drought, pests and disease and require fewer inputs such as pesticides and fertilisers. Scotland has so far taken a more cautious approach to biotechnology. The EU’s decision marks a major shift in agricultural biotechnology policy. For Scotland, it presents both an opportunity to access new breeding technologies that could support productivity and climate adaptation, and a policy challenge around regulation, market access, consumer acceptance and intellectual property. 

 

Fair Dealing Obligations (Pigs) Regulations 2025 (FDOP25) 

The 13th of August 2026 marks the end of the 12– month transition period for the UK’s Fair Dealing Obligations (Pigs) Regulations 2025, meaning that from this date all pig purchase contracts must comply with the new rules designed to improve fairness and transparency in the pig supply chain.  

The regulations require contracts between pig producers and purchasers to be in writing, signed, and to contain clearly defined terms on pricing, contract duration, volumes, termination arrangements, and dispute resolution.  Introduced under powers in the Agriculture Act 2020, the rules aim to give producers greater certainty and protection.  

The regulations came into force for all new contracts on 13 August 2025, but existing agreements were granted a 12-month transition period, which expires on 13 August 2026. Compliance is overseen by the Agricultural Supply Chain Adjudicator (ASCA), acting on behalf of the Secretary of State. The ASCA will carry out enforcement functions under FDOP25.  

 

Growing Consumer Awareness of Regenerative Agriculture 

Agricultural commodity trader and processor ADM commissioned research to understand European consumer perceptions of regenerative agriculture. According to ADM’s research across five European countries, awareness of regenerative agriculture is particularly strong in the UK. Around 73% of UK consumers say they have heard of regenerative agriculture, one of the highest levels recorded in the survey, although many are still unfamiliar with what the term means in practice.  

Despite this knowledge gap, perceptions are overwhelmingly positive: 73% of UK respondents believe regenerative agriculture improves soil health and 74% believe it helps protect food supplies for future generations. The research also found that consumers increasingly associate regenerative agriculture with restoring ecosystems, improving biodiversity, and supporting sustainable food production.  

When EMEA consumers were shown products with regenerative agriculture messaging on the packaging, 81% of UK, 78% of German, 76% of Polish, 75% of French and 63% of Dutch consumers said they would purchase the product.  Importantly for food and drink businesses, this highlights the growing influence of regenerative farming claims on purchasing decisions, particularly in the UK. While consumer understanding is still developing, it would seem that regenerative agriculture is gaining significant traction with UK shoppers and presents an opportunity for brands that can communicate its benefits clearly and credibly. 

 

Forestry Grant Scheme budget increased for 2026/27 

Scottish Forestry has announced an indicative Forestry Grant Scheme (FGS) budget of £58.65 million for 2026/27, an increase of £5.65 million over last year’s confirmed budget.  

The additional funding is primarily targeted at woodland creation, with the scheme expected to support up to 12,000 hectares of new woodland during 2026/27. Scottish Forestry has also simplified the application process by placing all woodland creation applications of 50 hectares or more (including Reduced Grant Requirement proposals) into a single funding category. 

Alongside this, an extra £300,000 has been allocated to encourage woodland expansion through natural regeneration, while £100,000 has been added to the Sustainable Management of Forests budget to strengthen the management of Scotland’s native woodlands. 

Funding also remains available through the Harvesting and Processing Grant. This option supports investments in two main areas: new specialised equipment which will increase the small-scale harvesting and processing capacity, and new specialised equipment for forest tree nurseries. An additional application round will open during 2026 for projects due to be completed by 31 March 2027, with applications closing on 31 July 2026.   

 

Latest estimates for agricultural greenhouse gas emissions 

The Scottish Government published (9 June 2026) its latest Scottish Agriculture Greenhouse Gas (GHG) Emissions and Nitrogen Use 2024–25 statistics.  

In 2024, Scottish agriculture emitted 7.5 million tonnes of carbon dioxide equivalent (MtCO₂e), which is the second-lowest level recorded since current records began in 1990.  

An increase in emissions from fuel combustion was offset by reductions across all other emissions sources. The long-term fall in emissions from agriculture is largely driven by falling livestock numbers. Suckler beef remained the largest emitting subsector, accounting for 41.2% of total agricultural emissions. Emissions from this sector have fallen by 0.7 MtCO₂e (18.8%) since 1990. Average emissions intensity for cereal production rose by 14% to 293 kgCO₂e per tonne of crop on cereal farms and by 6% to 258 kgCO₂e per tonne on general cropping farms compared with 2023–24. This increase was mainly driven by higher diesel use across arable businesses, with increased fertiliser use on some general cropping farms also contributing. 

In 2024-25 average farm emissions were stable at 4.2 tCO2e/ha. Increased diesel emissions for 2024-25 were offset by reduced fertiliser use across most farm types compared with 2023-24. 

Overall, the figures show continued progress in reducing total agricultural emissions, while also highlighting the ongoing challenge of improving emissions intensity and nutrient efficiency.  

 

Heather Stuart, heather.stuart@sac.co.uk

Relevant Scottish Government Publications and Consultations 

Publications	Publication Date
Scottish agriculture greenhouse gas emissions and nitrogen use: 2024-25 - gov.scot	09 June 2026
Scottish National Adaptation Plan Annual Report 2025-2026 - gov.scot	19 June 2026
Avian influenza (bird flu): how to spot and report the disease	Updated 24 June 2026
Classical swine fever: how to spot and report the disease	Updated 25 June 2026
Bluetongue: how to spot and report the disease	Updated 05 June 2026
SEPA Water scarcity levels and reports	Regularly updated

Consultations	Closing Date
NatureScot - General Licensing Review	31 August 2026
National Strategy for Community Justice: review of 2022 strategy - Scottish Government consultations - Citizen Space	20 August 2026

 

Key Dates

Date	Actions
31 July 2026	AECS Organic application deadline
1 June – 9 September 2026	Bluetongue movement restrictions - from 1 June 2026