Business and Policy October 2026 – Policy Brief

New consultation could shape future farmer training and skills support 

The Scottish Government opened a consultation on Continuing Professional Development (CPD) under Tier 4 of the Agricultural Reform Programme. Tier 4 focuses on people and professional development and is intended to support skills, knowledge transfer, training, advisory services, CPD and business support for farmers and crofters. CPD helps people to update and maintain their skills, knowledge, and expertise during their careers, and ensure that they are kept up-to-date. The consultation opened 21 September 2026 and closes 14 December 2026. Farmers and crofters are being encouraged to engage with the consultation and provide views that can help develop the policy for a potential CPD system. This could influence how future agricultural support helps farmers access training, advice and skills development.  

Take part in the consultation here.  

Scottish Government consults on price caps for essential food 

The Scottish Government launched a consultation on 1 September 2026 on proposals for legal price caps on essential food items sold by large supermarket chains. The consultation runs until 24 November 2026. Price cap interventions are being considered alongside other steps with the aim of improving the affordability of food for households facing cost of living pressures, particularly those on lower incomes. A food affordability summit involving farmers, food producers, retailers and other industry representatives was held on 8 September to discuss the proposals. Although the proposals are aimed at food affordability, there could be implications for food supply chains, producer prices and relationships between farmers, processors and retailers. The consultation paper contains full background information and can be accessed here. 

Take part in the consultation here. 

Taskforce looks at getting more Scottish food into schools and hospitals 

A new public procurement taskforce has been established to examine barriers that currently prevent more Scottish-produced food from being purchased by schools, hospitals and other public institutions. It will bring together producers, processors, caterers and procurement specialists and develop recommendations for increasing local food procurement. Any move towards stronger local preference would still need to operate within public procurement rules and value-for-money requirements. Public sector procurement represents a potentially significant market for Scottish produce, particularly if barriers around price, scale, transparency and sourcing can be addressed. 

Latest Agricultural Price Indices  

The latest Agricultural Price Indices show that UK farmers have experienced a turbulent few years, with both farmgate prices and input costs rising sharply from late 2021 onwards. The chart below highlights how input costs, including feed, fertiliser, fuel and other essentials, climbed faster than output prices and peaked in mid-2022, putting significant pressure on farm margins. Output prices peaked later, in early 2023, helping to improve returns, and from late 2023 through to early 2026 farmers generally benefited from output prices staying ahead of input costs. However, the chart shows that this position has changed again in 2026, with input prices overtaking output prices from April onwards and remaining higher in July 2026. Although both indices are still well above their 2020 levels, the widening gap in favour of costs is a reminder that profitability depends not only on what farmers receive for their products, but also on keeping a close eye on rising production expenses. While market prices have recovered since 2020, cost pressures remain a major challenge for farm businesses. 

Monthly price indices for agricultural outputs and inputs to July 2026 (2020 = 100)