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Farmers hold rally at Holyrood over funding and tax

Nicola Wordie: A day in my life as a young farmer as the industry protests

Hundreds of farmers and crofters have staged a rally outside the Scottish Parliament in Edinburgh to voice concerns about the future of the sector.

They are calling for an increase in the funding for agricultural support when the Scottish government announces its Budget next week.

Concerns have also been raised over the UK government's changes to the agricultural relief on inheritance tax.

UK ministers have defended those proposals, while the Scottish government says it is "unequivocal" in its support for the industry.

UK Chancellor Rachel Reeves announced in her Budget in October that funding for farm subsidies would no longer be ringfenced for the devolved nations.

Instead, it would be integrated into each nation’s block grant through the Barnett formula - allowing governments to spend it on other areas.

Many farmers are concerned that the funds will be competing against other demands, such as health and education.

A man wears a jacket and the camera shows the back which reads "No farmers, no food, no future". A crowd is in the background

Farming union NFU Scotland wants the overall budget for farmers to increase by £50m to £776m.

It is also urging the Scottish government to make funding commitments across a number of years to provide financial stability.

Multi-year settlements under the EU's Common Agricultural Policy provided certainty for up to seven years at a time.

After Brexit, those budgets were set by the UK government across a five year time frame.

The union's director of policy, Jonnie Hall, says the Scottish government now has full control over agricultural funding and the budget will be a test of its commitment to rural communities.

He added: "Our figures show that a modest budget increase in the agricultural portfolio would deliver a strong return on investment, fostering employment and growth in areas with limited economic alternatives while advancing climate and nature goals."

A large crowd of farmers gathered outside the Scottish Parliament near the public entrance to the building.
Farmers gathered outside the Scottish Parliament to protest the tax changes

NFU Scotland estimates that about 67,000 people in Scotland are directly employed in agriculture.

It says a further 360,000 are dependent on the sector.

The rally saw farming leaders raise a number of issues, including the UK government's changes to the agricultural relief on inheritance tax.

Those concerned about the proposals include 26-year-old Aberdeenshire livestock farmer Nicola Wordie.

She hopes to become a third generation farmer - but says it is an incredibly worrying time for the whole family, including her dad George.

Nicola's mum Margo died suddenly earlier this year - aged 59 - and she is concerned that the inheritance tax changes would mean that large amounts of land would have to be sold off for her to take control of the farm when the time comes.

Nicola says that would make it too small to farm profitably, adding: "It could be the end of this family farm as we know it."

Sheep grazing on an Aberdeenshire farm beside a river
Much of Scotland's farm land is grass for grazing sheep and cattle

Rural Affairs Secretary Mairi Gougeon says the uncertainty being faced by farmers is compounded by changes to inheritance tax relief and has called on the UK government to reverse its decision.

She added: "The Scottish government is unequivocal in our support for Scotland’s farmers and crofters.

"They play a vital role fuelling our rural communities and making possible our world-class food and drink sectors and the UK government Budget will penalise them by failing to reverse the real terms cuts of previous years and failing to provide the multi-year certainty they require."

Ms Gougeon addressed the rally along with representatives from other political parties.

She told them that farmers are the backbone of rural communities and that she was at the rally to hear what they had to say - but she said she could not say what next week's budget would mean for agricultural funding.

Scottish Conservative leader Russell Findlay said for too long farmers had been short-changed by an Scottish government who have seen the agricultural budget as an easy target to make cuts.

He said: "Farmers are already reeling from Labour’s spiteful Family Farm Tax plans.

"The last thing they need in next week’s Scottish Budget is for the SNP to let them down again."

The UK government has insisted that only the wealthiest farmers would be affected by the inheritance tax changes and that "the vast majority" would see no impact.

Scotland's Finance Secretary Shona Robison is due to deliver her Budget for 2025/26 in the Scottish Parliament next Wednesday.

It comes following a difficult financial year in which money was taken from nature restoration budgets to fund local authority pay settlements.

Farming leaders are also calling for the restoration of £46m of previously unallocated funds which was removed from past budgets.