Business and Policy September 2025 – Policy Brief

Payment rates set for Basic Payment Scheme and Greening 2025 

Following the annual budget review, the Basic Payment Scheme (BPS) and Greening payment rates farmers and crofters are set to receive for 2025 have been set.   

The revised rates for 2025 for BPS and Greening are: 

Payment Region	BPS £/eligible ha	Greening £/eligible ha	2025 Combined £/eligible ha	Difference from 2024 Combined Rate
Region1	£147.22	£75.79	£223.01	- £0.37
Region 2	£32.45	£12.82	£45.27	- £0.11
Region 3	£9.42	£4.30	£13.72	- £0.03

Advance Payments relating to BPS and Greening are due to commence in September. 

 

Less Favoured Area farmers and crofters – Sustainable and Regenerative Agricultural Practices Report 

The Scottish Government have published a research report entitled Understanding Uptake of Sustainable and Regenerative Agricultural Practices among Less Favoured Area (LFA) Farmers and Crofters.  The research report was commissioned to assess the opportunities and motivations for the uptake of specific sustainable and regenerative agricultural practices amongst Less Favoured Area farmers and crofters, with the aim of using the findings to inform future policy and the development of the new support programme.  

Four specific groups of practices were identified for assessment: 

• Carbon emissions reduction measures (including carbon audits, soil testing and livestock efficiency measures). 

• Peatland restoration. 

• Tree planting and woodland natural regeneration. 

• Biodiversity measures (including permanent and temporary management practices). 

The main findings and key messages included a need for diversified and locally adapted support policies for Less Favoured Areas. This was deemed particularly important for enabling the adoption of sustainable and regenerative farming, as practices adapted for one specific area will not necessarily work for another.  It was also advocated that there should be a reviewed and refined definition of LFAs (including an update of land capability) which would assist in achieving these adaptive policies and that it would be beneficial to develop productivity criteria specifically adapted to LFAs.  

The study also showed that beyond direct support, indirect supports to enable the relocalisation of food systems could be beneficial to the adoption of regenerative farming practices, as well as addressing depopulation. Participants in the study underlined the need for the development of local markets and infrastructure (such as abattoirs) in line with recommendation of the British Ecological Society (2005) report regarding the need for shorter (local) and equitable supply chains. 

To read the report, please click here.

 

Electronic Cattle Tagging Update 

While England has opted to stick with Low Frequency (LF) technology for Electronic Identification (EID) of cattle, the Scottish Government have chosen Ultra High Frequency (UHF) technology for Cattle EID. 

While Ultra High Frequency technology has the advantage that it can provide automatic multi-animal scanning compared to Low Frequency technology which scans one animal at a time; UHF also offers health and safety benefits linked to its remote scanning ability compared to LF technology which requires the operator to be within 15-18 cm of each animal. Based on a pilot project, Scottish farms already using the technology have reported a 23% reduction in handling-related incidents.  And given that the business efficiency and health and safety benefits of UHF technology can go beyond the farm gate, the technology has already been installed in 20 Auction marts and in 14 abattoirs across the country. 

With EID legislation coming into force in 2026, it is expected that a guidance document will be published early next year. 

 

Building Climate Resilience  

People who manage areas of Scotland’s land and freshwater can apply for a new award that shows they are protecting nature and helping to tackle climate change.  Areas of advanced biodiversity can now be recognised as a Nature30 site, which means they will be helping to meet the Scottish Government’s commitment of restoring 30% of Scotland for nature by 2030 – also known as ‘30 by 30’.  

Nature30 sites are areas of land that:  

• are not an existing protected area. 

• managed to have positive outcomes for biodiversity. 

• subject to a long-term (typically at least 25 years) assurance that they will continue to be managed to deliver for biodiversity. 

Becoming a Nature30 site will give recognition to more places doing excellent conservation work and should also provide a route to attract both private and public financial incentives.  Unlike Protected Areas, Nature30 sites will not have statutory protection or enforced regulation.  Instead, the emphasis is on governance authorities meeting agreed and voluntary management commitments.  

In their simplest form, Nature30 sites are defined areas that are put forward by landowners/managers as being managed effectively, in such a way that produces benefits for biodiversity that are secured in the long-term.  Nature30 site applications are open to landowners, communities, companies and public bodies. 

If you wish to be assessed for Nature30 recognition, please complete and submit the Nomination Form to 30×30@nature.scot. There is no closing date for nominations, NatureScot is open to receive applications at any time. The nomination form outlines the criteria that need to be met, the corresponding questions you will need to answer and the expectations on those managing Nature30 sites. It also provides supportive guidance with regards the details/evidence you may wish to provide in support of your application.

 

Organic Farming  

Following on from the Scottish Government’s commitment to ‘30 by 30’, last year, the area of land farmed organically in Scotland increased by 13% to 132,000 hectares, with 105,000 hectares being classed as fully organic and 27,000 hectares currently in conversion.  Approximately 46% of organic farmland is located in the Highlands and Islands, 28% in Southern Scotland, 17% in Eastern Scotland, 9% in North Eastern Scotland, with less than 1% being located in West Central Scotland.  

While 82% of the fully organic area is permanent pasture (including rough grazing), with a further 7.5% being classed as temporary grassland, 4.7% equating to ~4,900 hectares are used for cereal production and a further 1,100 hectares are being used for vegetable production.  

In terms of organic livestock, last year, there were 35,000 organically farmed cattle in Scotland, representing 2.1% of Scotland’s cattle population.  While numbers have fallen by 1.8%, this is broadly in line with falling numbers of conventionally farmed cattle.  In contrast, last year organic sheep numbers rose by 5.7% to 157,000, representing 2.4% of sheep in Scotland.  Organic pig numbers increased by 17% in 2024 but this was on the back of a sharp (91%) fall in numbers between 2022 and 2023 linked to the cyclical nature of pig production.  Poultry numbers decreased to 254,000, representing ~2.1% of the poultry population in Scotland.   

 

Community Right to Buy 

Under the Land Reform (Scotland) Act 2016, in simple terms, crofting, rural and urban communities have the right to register their interest to buy land, which grants the community body the right to buy the land when the landowner wishes to sell it.  However, as the process can be complicated and demanding, to facilitate community ownership the Scottish Government are seeking views on how to simplify the process.   

The consultation is open to all members of the public until 5th October 2025. For more information, please visit: Community right to buy: review – Scottish Government consultations – Citizen Space  A Gaelic version is available here: Leriche’s air Còir-cheannaich Coimhearsnachd co-chomhairle

 

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

Key Dates

Date	Action
1 September 25	Scottish Upland Support Scheme Application Window opens
1 November 25	Greening cover establishment deadline