Return of the Agri-Environmental Climate Scheme

On Tuesday 7th October this year the Scottish Government Minister for Agriculture and Connectivity, Jim Fairlie, attended the first Nature Friendly Farming Summit in Edinburgh. The summit was planned and facilitated by the Nature Friendly Farming Network and supported by the RSPB and a host of other organisations to promote knowledge exchange and land management to improve profitability and nature conservation successes.   

During his address, Minister Fairlie made a series of announcements and acknowledgements, including the return of the Agri-Environment Climate Scheme, which will run in 2026 and continue, with changes up to 2030.  

The Agri-Environment Climate Scheme (AECS) is Scotland’s principal environmental scheme and was launched in 2015 as the successor to the Rural Priorities Scheme. The scheme offers payments to promote the uptake of nature friendly farming practices – think sustainable grazing plans for semi-natural habitats, cutting plans for hedgerows or livestock exclusion from waterways – as well as support to mitigate pollution and aid in the transition to organic farming.    

So far, a total of £339 million has been allocated to 3,417 businesses through the scheme, supporting a variety of projects aimed at preserving and enhancing our diverse natural environment. In addition, the AECS budget for 2024–25 and 2025–26 has been set at a level that allowed all funding-recommended applications to be approved — marking a record approval rate for the scheme.  

In its current iteration, the scheme has 60+ management options, ranging from options like Wader Grazed Grassland – a management option aimed at facilitating grazing pressure reductions in spring for ground nesting birds (£80/hectare) to Stubbles Followed by Green Manure in an Arable Rotation – a management option, supporting with a capital item that funds the creation of green manure cover crops to stabilise post-harvest soils and provide forage for farmland birds, insects and other invertebrates (£776/hectare).  

For the dairy sector, participation in the scheme has been difficult to achieve, as often highly productive landscapes lack the scope to get involved or there are issues around compliance with management requirements make committing to the scheme difficult. The table below shows several options (with links provided for more information) that could fit into a dairy system – to greater or lesser extents.  

Management Option
		Grassland	Arable	Farmland Habitats and Features
		Wader Grazed Grassland	Wild Bird Seed for Farmland Birds	Management or Restoration of Hedgerows
		Wader and Wildlife Mown Grassland	Retention of Winter Stubbles for Wildlife and Water Quality	Habitat Mosaic Management
		Species-rich Grassland Management	Stubbles Followed by Green Manure in an Arable Rotation	Managing Scrub of Conservation Value

 

Farmers and land managers are encouraged to prepare by reviewing current AECS guidance and identifying potential projects ahead of the 2026 opening, for what could be a highly competitive funding round. 

https://www.ruralpayments.org/topics/all-schemes/agri-environment-climate-scheme/ 

 

Alexander Pirie, SAC Consulting 

alexander.pirie@sac.co.uk