Millions of pounds of agricultural funding will be returned to the sector, according to Scotland’s First Minister, John Swinney, who made the commitment at this year’s AgriScot.

Speaking at the NFU Scotland debate, the First Minister said: “The £46m which the Scottish Government has utilised for short-term purposes to deal with inflation in other areas of the budget will be returned. I give you that cast-iron commitment from the Scottish Government.”

However, Mr Swinney did not offer an explicit timeline for when the money would be returned. The Perthshire MSP went on to highlight uncertainty over the future of the farming budget, as the Labour Government in Westminster has only set out a one-year commitment in last month’s Budget.

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Addressing an audience of farmers in the Highland Hall, Mr Swinney explained: “I do recognise the significant uncertainties you face. Funding uncertainty and market stability for farmers are absolutely critical for the period which lies ahead.

“If there is a decline in the support available for agriculture in England, that will have a damaging and negative effect on the Scottish block grant as a consequence through the application of the Barnett formula. If a budget is reduced in England, the Scottish budget will go down as a consequence. There are significant uncertainties.”

Mr Swinney stated that the funding announcement in the Budget only provides certainty for a single year. He said: “The implications of the UK Budget do not give us the freedom to work on our behalf to address some of those questions.

“We are constrained in giving a multi-annual commitment, with no line of sight beyond March 1, 2026, at this particular stage. In the spring, we think we could get three years of certainty in the Westminster funding review. But we are not yet certain of the direction of support in England. In short, I am always worried about funding issues, as they can have a lot of unintended consequences.”

In NFUS president Martin Kennedy’s speech, the Perthshire farmer set out six key requests for the Scottish Government. He called for a commitment to a multi-annual funding settlement for farmers alongside the return of the £46m. River management was also a priority, as the president sought action to allow farmers to address problems of sediment build-up in riverbeds. Species management was another critical issue, as he warned that the rural population would decrease unless farmers are allowed to farm. Including farming in the school curriculum, electronic tags for cattle, and increased procurement of Scottish produce through public contracts were also on his list of demands.

Concluding the Union’s charter of requests was a call for the Scottish Government to scrap proposals for a new national park in the Dumfries and Galloway area.