Agroforestry for Scottish farming’s future
Policy Advocate - Scotland
Following the passing of the Agriculture & Rural Communities (Scotland) Bill earlier this year, the Scottish Government is crafting its new agricultural support scheme, which will set the direction of farming and our environment for generations to come.
This is the biggest change in the support and regulation of land use and management in Scotland for 40 years, and holds the power to truly transform agriculture for the benefit of farmers, nature, climate and wider society.
Scottish agriculture has a diverse history and has well and truly put Scotland's reputation for premium food and drink on the map. From Orkney beef and lamb to Ayrshire Dunlop cheese to our renowned Scotch whisky, Scotland's food and drink sector is one of our most lucrative1 and culturally important exports, but the relative success of Scottish agriculture has come at a cost. Scottish agriculture accounts for approximately 19% of Scotland's greenhouse gas emissions2, and the post-war intensification that boosted agricultural productivity has directly and indirectly led to detrimental impacts on biodiversity3.
Not only is the sector's environmental impact under the microscope, Scottish agriculture's future is on the line. Our land use sector is particularly vulnerable to the increasingly wild and unpredictable impacts of climate change. Animal welfare, the loss of important ecosystems, flooding and other impacts are increasingly threatening our farmers' and crofters' businesses and way of life. Against a backdrop of an even more volatile global landscape, the growing need for food security in Scotland and the wider UK means that nature-based solutions for solving environmental problems, and business success, are not mutually exclusive. The sector is at a critical juncture in how it moves forward to become more sustainable and resilient in the ever-changing world we find ourselves in.
The Scottish Government has therefore committed to make Scotland a global leader in sustainable and regenerative agriculture, while maintaining its reputation for high quality food production. This commitment sits "at the heart of a robust and coherent framework to underpin Scotland’s future agricultural support regime from 2025 onwards," according to the Scottish Government. This new agricultural support scheme will be vital in setting the course of change for agriculture's impact on the environment and its own resilience.
There is a small window to get this right, so the Scottish Government cannot afford to water down these ambitious commitments. To date the Basic Payment Scheme (BPS) under the EU Common Agricultural Policy (CAP) has been the backbone of direct financial support to Scottish agriculture, supplementing the main business income of farmers and crofters.
The Scottish Government needs to be brave in its transformation of the support scheme. Its own analysis has shown that recent rounds of CAP funding have not delivered the intended benefits or value for public money. Although supporting the sector financially, little environmental benefit has been derived from direct payments, and in some cases the impacts have been negative4.
Supplementary agri-environment support schemes have also fallen short of meeting their objectives. Greening, for example, is a payment scheme "for agricultural practices beneficial for the climate and environment," but the Greening payment has been found unlikely to provide these benefits on the required scale5. While the Agri-Environment Climate Scheme (AECS) has been found to have a positive impact, this has been limited in scope due to low uptake and a dwindling budget. A fundamental reset of the agricultural support scheme is needed to continue to support farmers and crofters, but with better delivery of wider public benefit.
With 70% of the new agriculture budget being poured into tiers one and two of a new four-tier system from 2025, conditions attached to direct payments in those lower tiers hold all the power to drive real land use change, if the Scottish Government is brave enough.
As one of the most effective ways to achieve Scotland's climate goals6, payment options for agroforestry should be a key consideration when designing the new agricultural support scheme. The benefits of native trees and woods are widely recognised, and their impact on farming systems is becoming increasingly so. Trees sequester carbon from the atmosphere, provide vital natural habitats for Scotland's magnificent array of wildlife and ecosystems, mitigate climate impacts such as flooding and increasing temperatures, and provide mental and physical health benefits to people7.
In the agricultural context, integrating trees with existing farming systems has proven to improve soil quality, manage flooding, improve water quality, produce additional products such as timber, crops and fodder, and provide shade for livestock, improving overall animal health and welfare. With increasingly unpredictable and severe weather, increased tree cover will be fundamental for the resilience of Scottish agriculture. Research has shown that these improvements also have an overall positive impact on the business of farming and crofting, and can even improve business productivity by up to 40%8.
Our newest report, Payment Options for Integrating Trees into Farming Systems, published in partnership with the Soil Association Scotland, identified too many existing barriers preventing the uptake of agroforestry on farms and crofts in Scotland. For example, while the Forestry Grant Scheme's (FGS) Agroforestry Grant was a positive introduction, there are several practical and financial drawbacks to uptake, including being ill-suited to increasing tree cover at lower densities. As of May 2024, Scottish Forestry had a total of only eight agroforestry applications9.
With the barriers to uptake via the FGS and agricultural support schemes set out, our report now offers policymakers a real opportunity by recommending practical ways in which trees can be integrated into farming systems, and the nature and level of payments that would be required. Covering wildflower strips, in-field low density trees, small farm woodlands and more, the report illustrates just what is possible if the Scottish Government is serious about enhancing agroforestry offerings for farmers and crofters.
This commitment to integrating trees on farms marks a critical juncture for Scottish agriculture. The Scottish Government, working in conjunction with organisations like Woodland Trust Scotland and the Soil Association, can lead the way in creating a sustainable and regenerative agricultural future. The time to act is now, and with the right support, this vision can become a reality, benefiting both the environment and the future of Scottish agriculture.
1 NFU Scotland | Scottish Farming Facts | Farming & Food Supply Chain
2 Agriculture and climate change - Agriculture and the environment - gov.scot (www.gov.scot)
5 European Court of Auditors, Special Report 21/2017: Sustainable Land Use (Greening)
6 NFU Scotland, Nourish Scotland, Farming for 1.5°: From here to 2045