The Agriculture and Rural Communities Bill may have been given the nod by MSPs at Holyrood, and will become an Act when it receives Royal Assent, but NFU Scotland says how the new powers are used is crucial.

Speaking to the media at the Royal Highland Show, policy director Jonnie Hall outlined how the Bill provides the critical framework legislation and powers to enable farmers and crofters to play their unique role in high-quality food production, climate mitigation and adaptation, nature restoration, and sustaining rural communities.

However, it is the secondary legislation that will lead to the further development and implementation of the Scottish Government’s planned four-tiered support framework, due to be implemented from 2026.

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Mr Hall said the vote was ‘just the starting pistol’ and it is now moving towards the next phase of development and that ‘transition is key’. He also welcomed the commitment by First Minister John Swinney that there will be no ‘cliff edge’ of support.

“Individual farm businesses will have to adapt and change to navigate new requirements,” he added.

“Powers are one thing – it is how those powers are used that matters most. The Scottish Government has said on numerous occasions that it wants to avoid a ‘cliff edge’ for Scotland’s farmers and crofters.

“Getting the next phase right is critical to delivering that ambition. The industry agrees to change but not chaos, transition not turmoil. For that to happen, we need today’s existing schemes to morph into the four-tiered structure proposed by the Scottish Government. Putting it bluntly, we want the new Tiers 1 and 2 to operate in a very similar way as the Basic Payment Scheme (BPS) and Greening does today.”

In detail, NFU Scotland wants to see Tier 1 effectively replace the existing BPS from 2026. In addition, Tier 2 Enhanced support should be area-based, just like Tier 1 Base support will be, but with a changed set of ‘conditions’ attached that would go over and above current cross-compliance rules.

NFUS president Martin Kennedy again argued for ring-fenced, multi-annual funding for the sector from Westminster, coupled with a substantial increase in budget of £1bn to more than £4.7bn.

The union also outlined the anticipated timeline for the Bill to be implemented.

2025 – Changes to existing schemes (new cross-compliance for peatlands and wetlands, Whole Farm Plans for BPS, and new conditions for the Scottish Suckler Beef Support Scheme rolling.

2026 – Expect BPS and Greening to be replaced by new Tier 1 and Tier 2 direct support payments with similar delivery mechanism as a transition to at least 2028.

2027 or later – Expect a replacement for the Less Favoured Areas Support Scheme to morph into the new structure. NFU Scotland will argue for this to be an element of Tier 1.

2027 – Expect other current Pillar 2 schemes (such Agri Environment and Climate Scheme; Knowledge Transfer and Innovation Fund; Food Processing, marketing and Cooperation Fund etc) to morph into Tier 3.