“Sustainable” is a term that has long been used in the agricultural industry, but the last year has brought into focus what it means to have a sustainable business. Scottish agriculture has seen significant policy changes with the introduction of The Agriculture and Rural Communities (Scotland) Act 2024, the proposals contained in the Land Reform (Scotland) Bill 2024, and the amendments to Agricultural Property Relief and Business Property Relief following the autumn budget. An industry that is already used to battling uncertainties now has further challenges to overcome.
The Agriculture and Rural Communities (Scotland) Act 2024 aims to introduce a phased transition from the Common Agricultural Policy. The Act is the framework for the introduction of elements including a Code of Practice for Sustainable and Regenerative Agriculture, and the Rural Support Plan which sets out the strategic approach for access to funding over the next five years.
The Code will be a best practice guide on the types of activities, and the way in which they can be carried out, to contribute to the development of sustainable and regenerative agricultural practices in Scotland. The Code will not be law and is not intended to create any legal obligations, however, it will be fundamental that activities reflect the Code to access support. A first draft of the Code was undertaken in 2024 with feedback currently being sought from stakeholders on its terms, and is anticipated to be published and laid before Parliament this year.
The Rural Support Plan will set out how agricultural subsidy support will deliver the 2024 Act objectives and wider Scottish Government priorities. These include the reduction of greenhouse gas emissions, reducing nitrogen loss and waste, optimising the proportion of land farmed organically or as agroforestry, and improving the biodiversity of agricultural land, all of which have the overarching purpose of the contribution of agriculture to landscape scale nature recovery. It is intended that the Rural Support Plan will collate all of this information into a single strategic and coherent package.
Farmers have already needed to take initial steps in advance of 15 May this year to start complying with these changes by completing two of five options contained in their Single Application Form, with obligations to complete more each year.
The theme of sustainable and regenerative farming practices is being echoed by the Scottish Government in the Land Reform (Scotland) Bill, which proposes a myriad of changes around ownership of land. However, in Part 3 of the Bill there are proposed reforms to the law surrounding agricultural tenancies. These reforms include recognition for compensation for tenant’s improvements that deliver environmental benefits, with greater emphasis on sustainable and regenerative activities.
The impact of the autumn 2024 budget on farming has been widely reported and has added to the many challenges facing the industry. Not only are farmers having to adapt to move towards sustainable and regenerative practices to tie in with Scottish Government objectives to achieve net zero, they are having to review how their businesses hold their assets to preserve a sustainable business for future generations.
A common thread emerging between the 2024 Act and the Land Reform Bill is the concept of the adoption by the industry of sustainable and regenerative farming practices. However, many in the industry are already forging ahead pursuing opportunities, practices, and engaging with the agri-tech sector to find a means to achieve sustainable agriculture. In addition, many farmers are undertaking reviews of their business structure, taking a holistic approach to their business not only to survive, but to also thrive. The industry has shown through the years its resilience to challenges brought before it, and its resilience and commitment to finding solutions is perhaps the true meaning of sustainable agriculture.
With the many challenges facing the industry, it’s more important than ever for farmers to surround themselves with experienced and skilled advisors who can offer support and advice along the way.