First Minister's speech to NFUS Annual Conference

Speech by First Minister John Swinney at the National Farmers Union of Scotland's Annual Conference in Glasgow on Friday 6 February.

Thank you very much for your welcome this morning.  It is a great pleasure to be back with you again this year and to be joined by the Cabinet Secretary for Rural Affairs, Mairi Gougeon and Jim Fairlie, the Minister for Agriculture. We look forward to the dialogue we have here today.

It's also a great pleasure to follow Jillian Kennedy and that wonderfully inspiring address about the work of SAYFC. I'm delighted on the progress that's been made on the big build and the support the government has been able to give to that effort.

I have to say, I am looking forward with enormous trepidation to the Burn's Supper in Ingliston, just in advance of my trip to Murrayfield the following day, where I expect us to be commanding the Calcutta Cup, and that is before we win the World Cup in June and numerous gold medals at the Commonwealth Games. I think it will probably be the most challenging environment in which I'll deliver an Immortal Memory. I look forward to it and thank Jillian very warmly so for the work she is doing in raising awareness and raising resources to support the big build campaign.

I know, for many of you, this conference provides an opportunity to take stock and to look ahead to the coming year. Its theme, as the President has just said, sums it up nicely: Facing the Future, Finding Opportunity.

Before I look to the future, I would like to start by recognising what you have achieved this year.

Agriculture underpins Scotland's largest manufacturing industry, the food and drink sector – that is worth £19 billion annually, with exports of over £7 billion.

You should all be immensely proud of this fantastic industry which you have built – one with so much potential. 

But the value of agriculture in Scotland extends so far beyond just that economic contribution – but I don't want to play down that economic contribution to Scotland. The value of agriculture extends far beyond that in ways not always measurable in monetary terms.

You may remember that last year's conference took place in the aftermath of Storm Eowyn, the most powerful windstorm in over a decade.

The time since then has been a challenging and at times ferocious period one for Scottish weather.

We have seen repeated storms and severe weather with winds in excess of 80 miles per hour. 

During last summer, at the other end of the spectrum, we faced acute challenges. The was a lack of water in some of the most fertile areas of Scotland, particularly Aberdeenshire, Fife and East Lothian because of the lack of rainfall that affected the agricultural sector.

In the colder months recently we have had a great deal of snow. But we have seen farmers clearing blocked roads. 

The efforts of the farming community in Caithness and Sutherland and in Aberdeenshire to support public services in dealing with the extremity of conditions that we faced has been remarkable. I want to say to you, very directly, it was deeply appreciated by the Scottish Government.

We can put in place a huge amount of resource to ensure the public infrastructure is able to withstand these significant climatic effects, but we are conscious on so many of these different occasions we are relying on the goodwill and the engagement and the contribution of members of the farming community in finding the solutions.

So I want to share very directly my thanks for your contribution to supporting the resilience of your communities. But that is nothing new it is something in the ethos and identity of farming communities, to be part of the solution in localities. To be actively working to support your neighbours and those around about you. To ensure you are making a contribution to that effort.

That work happens alongside your contribution to growing our economy, putting food on our tables, and protecting our climate and nature. I know, and my Government knows, that continued investment in agriculture is important for all of these reasons.

There has been too much uncertainty in recent years, from commodity price shocks, to impacts of climate change, to the enormous amount of geopolitical upheaval with which we are wrestling.

In a rapidly changing world, we need to support and protect Scotland's agricultural industry, ensuring continuity of sustainable food production for generations to come.

That is why we are committed to maintaining and improving direct support, both now and in the future.

Key to this are direct payments. We are committed to ensuring at least 70% of funding is delivered this way as we develop our future support mechanisms.

We are also focusing on multi-year funding.

I know this is an ask of NFU Scotland, and I know this is an issue for the industry because of the necessity for long-term certainty to underpin investment. 

So our draft budget and spending review that were published in January set out a clear line of sight to provide that. We have committed to a period of certainty until 2030 and beyond. 

But that certainty, which I hope enables long-term planning to be undertaken in confidence in the government's approach to direct support, does not mean that everything must stay the same. Reforms are necessary and are underway.

I want to reassure you that there will be no big bang moments or cliff edges. These reforms are being delivered through an ongoing, rolling process. They are carefully considered, incremental changes, developed in partnership with the farming sector.

And they are designed to deliver progress across key outcomes while ensuring stability for the sector.

While we are committed to continuing direct support, the direction of that support will shift over time. There will be more focus on activity, on ensuring that more support goes to those who are delivering key outcomes, from climate action to sustainable food production.

That means, if you are an active farmer or crofter, we are determined to back you.

Producers are already establishing soil, biodiversity, climate baselines as part of future support expectations.

Our ‘Whole Farm Plan' approach supports producers to know what is right for their business – and to make choices that lead to good outcomes, both for their business and for the country as a whole.

So, yes, we are in a period of incremental change, but I and my Government are committed to navigating these times with you. And we are doing everything within our devolved powers to protect, invest in, and grow Scottish agriculture.

Indeed, with the recently published budget, we are again committing over £660 million to the sector in Scotland. That is the most generous package of support anywhere in the United Kingdom.

This government in Scotland will not turn its back on our farmers and crofters.

And we will continue to work with you, together as a team, to find innovative solutions and seek new opportunities.

I know how crucial this support and investment is for your businesses and the strong appetite you have to invest in the future.

That is why, through our Future Farm Investment Scheme, we are delivering over £21 million in capital investment for farms and crofts across Scotland.

And we want to ensure those funds go to where they are needed most. So we are reviewing the scheme to better understand where and how improvements can be made and we will work with you as an industry so we can effectively target that investment.

And as part of our draft budget, we are committing £14.25 million to deliver a second round of the Future Farm Investment Scheme. This will ensure more farms and crofts can access the support and become more resilient and sustainable.

To achieve sustainable growth, though, we need to ensure that we invest up and down the supply chain. We need to ensure our food and drink industry is thriving and creating demand for our agricultural produce.

So, we will be investing £9 million in Food and Drink capital support to maintain and grow this crucial sector. This will include the launch of the  Food and Drink processing scheme – delivering vital investment to Scottish businesses and unlocking new growth opportunities for the sector.

Alongside this we are investing over £9 million in resource spending in this area. This will maintain our longstanding commitment towards the national food and drink strategy and in turn support growth in exports, deliver Good Food Nation measures, and support our organic action plan. 

It will also support crucial investment in producer organisations and the dairy sector.

As we all look ahead to this summer's World Cup and welcome the world to Scotland for the Commonwealth Games, we are determined to maximise growth opportunities for the food and drink industry from these events.

Industry partners are working at pace on practical ways to achieve this – from targeted support for businesses accessing new markets and building on our strong international brand, to support for small business growth in the domestic market.

However, we must also have the right conditions and the right opportunity to compete within a highly competitive global market. 

To do that we must be able to have the most effective relationship with the European Union. You will know I believe the best future for Scotland is as an independent member state in the European Union, but, we will do whatever we can in the current circumstances to further Scotland's interests including securing closer ties with the European Union.

The effects of Brexit have been disastrous, introducing trade barriers, disrupting supply chains and exposing us to external shocks and undermining the value of our economy as a consequence. I want to remove those barriers and remedy the damage that has been done

That is why my government is pressing for the UK Government to negotiate an effective SPS agreement with the European Union – one that reflects Scottish producers and consumers' interests.

An agreement like this could bring a uplift of over 20% in UK agrifood exports.

It is vital that the details of the deal reflect the interests of Scottish producers and consumers, and that implementation is planned in a way to allow businesses plenty of time to adapt to those new challenges and opportunities.

The negotiation of that SPS scheme, which is a priority for the United Kingdom government, must be informed, and I assure you it will be informed by the contribution of the Scottish Government. We will work closely with the industry to make sure that the concerns and issues and perspective of the industry can be adequately reflected in the formulation of that SPS agreement.

But while growing export opportunities is important, so much of our food and drink is bought and consumed by people right here in Scotland. It is a vital part of our local economies.

We want to make sure that it is always a strength of the sector. We want to ensure everyone – from school children to hospital patients – can enjoy our world-class meats and produce.

I know NFU Scotland have consistently called for more public sector procurement that reflects the needs and contribution of industry. We have listened to that and we are responding.

The government will work with stakeholders from NFU Scotland's Public Procurement Roundtable to better understand how we can drive better procurement practice. 

The newly established Scottish Food Commission will oversee Good Food Nation plans, and make sure we are delivering and improving on our Good Food Nation ambitions. This will include making recommendations on a range of food policy matters and public procurement.

I am confident that the Commission will work with the Scottish Government, local authorities and health boards in helping us create better outcomes for Scotland, enabling a healthy population with more opportunities to eat locally produced food.

We want this to work for businesses no matter where you are on your journey. And small producers are a key part in that journey for Scottish agriculture.

Indeed, from croft reared livestock to small fruit and veg growers, small producers are a core part of our rural identity.

They are key to keeping people on the land, to creating opportunities for new entrants, and to sustaining thriving communities. But they need our support, every bit as much as larger businesses.

So our budget will build on our previous investment to deliver a further £1 million to the Small Producers Pilot Fund in the year ahead.

And because supporting supply chains and investing in essential infrastructure is a crucial part of sustaining small producers, we have committed over £400,000 this year in investment to abattoirs to support small scale private kills.

This year, we are investing £500,000 of capital funding for small producers – funding investments as diverse as agri food diversifications and small scale horticultural projects. 

I am delighted to say for the coming year we will triple that investment and deliver £1.5 million of capital specifically for our small producers. Underlining our commitment to supporting this part of the sector going forward.

But we will go further, we are committed to developing new targeted support – particularly for our small scale producers – to ensure that more of the fruit and veg we eat here in Scotland is produced here in Scotland. That is a benefit for both our economy and our environment.

And I want to touch now on the environment. I am often reminded, from where I live my life in Perthshire and from my runs around Scotland, of the majesty of our countryside and our natural environment.

It is a huge benefit to our tourism and culture sector. And many rural businesses have invested to support agritourism to utilise the natural environment sustainably for economic gain. 

We want to help more producers to do that. So earlier this year, the Government launched a new £1 million Agritourism Investment Scheme, which is now open for applications.

The scheme offers capital grants of up to £50,000 for projects aligned to our Agritourism Strategy. It will help build financially sustainable, profitable, and resilient agritourism businesses that will play a key role in sustaining the future of Scottish agriculture through the use of diversification.

I'm delighted that Scotland will host the Global Agritourism Conference in June. This is a fantastic opportunity to showcase Scotland's food, farming and agritourism, and to build new international connections.

Over 1,000 delegates from more than 100 countries, including around 300 Scottish businesses, are expected to attend.

We all know that the future is only sustainable, if we look after our people. It is people who drive our growing rural economy and it is people who deliver for climate and nature. 

It is people who carry out those small acts of kindness I spoke of earlier.  People who keep our rural communities together when the storms hit and the difficulties hit.

I know many of those people, perhaps many of you, feel uncertain about the future. That is particularly true for many in our iconic livestock sector.

I want to do something to address that. I and my Government are committed to championing and supporting our world-renowned livestock sector.

And I want to repeat what the Cabinet Secretary announced at last summer's Royal Highland Show: this government has no policy to reduce livestock numbers – not now, and not in the future.

One of the ways we protect our livestock producers is through our continued investment in animal health and biosecurity, with over £24 million identified in our draft budget – we are determined to play our part in keeping your herds and flocks healthy to be part of that sustainable future.

We are also committed to investing in the sector, with over £100 million invested through the Less Favoured Area Support Scheme and Voluntary Coupled Support for both cattle and sheep producers. In stark contrast to policies in other parts of these islands.

And when we talk about people – and when we talk about the future of our agriculture industry – we need to talk about our young people, and Jillian has given us a fantastic introduction to that point. We cannot have a sustainable agriculture in Scotland without involving the next generation. 

Last year, I had the pleasure, along with the Cabinet Secretary and the Minister, of attending a summit with NFU Scotland's Next Generation Committee and the Scottish Association of Young Farmers Clubs. I met an inspiring group of young people full of energy and ideas on how to drive this sector forward.

As Jillian set out, to underline our commitment and support for our young farmers we are proud to have supported the SAYFC big build project with £98,000 – recognising the importance of movements such as SAYFC for the development of the next generation.

Many of you have children who are watching you, considering your work, and considering if it is right for them in the future.

If this industry is right for them, then we need to support them to realise their potential – with everything from access to land to skills and finance.

We are making good progress with 17 new entrant opportunities now advertised on the Forestry and Land Scotland website, and officials are working at pace within the government to ensure more opportunities are available to our next generation.

And, while access to finance continues to be a challenge, our draft budget has an additional £200 million earmarked for the Scottish National Investment Bank. 

We are working hard to understand how, through the Bank, we can provide access to that patient capital we know is so crucial to young businesses, particularly in making an entrance to agriculture through the acquisition of land.

We also know that – for many young people involved in farming or other industries – accessing housing continues to be a challenge for a range of complex reasons.

Rural repopulation has been, and will continue to be, a key focus of my Government. We want to see more lights on in our rural villages, in our straths and glens.  

And we want to ensure that if people want to put down roots in rural Scotland or move back to where they grew up, they can do that.

One of the most direct and practical ways we can do this is through modest support and incentives.  

Schemes like the Croft House Grant Scheme have shown how modest, means-tested support can encourage young people to stay rooted in rural communities.

This allows them to make a life for themselves and their families in rural and island areas.

So today, I am delighted to announce that my Government will develop a Rural and Island Housing Grant Scheme, with an indicative budget of up to £20 million over the next four years.

Through the scheme we aim to help people, including first time buyers and families, to access affordable home ownership, in rural and island communities.

The Scheme will provide modest capital grants to help meet the cost of securing a home and support more properties to be used as permanent residencies, including suitable farm buildings.

The development of this Scheme will be taken forward in collaboration with rural and housing partners, enabling young people and families to put down roots, in many cases to come home – breathing new life into our rural and island communities.

I know for many of you that issue is of fundamental importance to ensuring that there is sustainability and vitality in our rural communities. That is an ambition that this government shares to make sure that our population in rural areas is strengthened and strengthened by people able to contribute to the working of the land and the opportunities that flow from it in rural Scotland.

I know for many of you will have concerns and interest in the issue of species management. Food production and caring for the environment are two sides of the same coin.

We recognise and understand your concerns. And we are working to build consensus as to how we ensure better co-existence between agriculture and species, such as sea eagles and beavers.

This is why we have developed our wildlife forum – to bring together land managers and conservation groups to focus on solutions, and chaired by Jim Fairlie as the Minister for Agriculture. And, as part of that, we will be investing £1 million in our Sea Eagle Management Scheme. NatureScot will be writing to applicants to confirm scheme participation shortly.

We also continue to provide funding for goose management schemes – I want to assure you we will be taking forward actions from the goose management policy review. We recognise the concerns and frustrations you have and are determined to do all we can to improve support.

Last week we saw a significant milestone for nature and rural Scotland, with the passing in the Scottish Parliament of the Natural Environment Bill.

You, our farmers, crofters and land managers, are on the frontline of stewarding Scotland's natural heritage. You know better than anyone how vital it is to protect and restore nature for future generations.

This Bill supports that goal, and it brings real opportunities for rural Scotland. As we take this forward, my government will continue to work in partnership with you to deliver results on the ground ensuring a balanced approach.

That commitment is also underlined by our continued delivery of the Agri-Environment Climate Scheme – the backbone of environmental and biodiversity support since 2015.

Today, I am pleased to announce £5 million in Agi Environment Climate Scheme (AECS) 2025 funding for 209 contracts, bringing the total support delivered to £343 million across over 3,500 contracts.

And we are not stopping there. The 2026 round of AECS will open on 23 February. This represents an opportunity for businesses across Scotland to apply for support to invest in sustainable and regenerative farming.

In the course of my engagement with the industry in recent years, I have been struck by the enormously good work that has been taken forward by organisations such as RSABI and Farmstrong. For many in our farming communities, they have been a lifeline during difficult times, offering much needed support and guidance and hope for individuals through mental health challenges and financial stress. 

That is why we are continuing to support RSABI in the next two years; so they can continue providing emotional, practical and financial assistance to those in Scottish agriculture who need it the most.

In 2025 to 2026, we provided £75,000 to RSABI and in the coming financial year, we will provide a further £75,000, which will bring the total Scottish Government support to £715,000 since 2020.

We have also supported Farmstrong with £25,000 this year to help develop their programme and we will double that support to £50,000 in the next financial year.

The wellbeing of our rural communities matters deeply and these organisations are a crucial part of that care.

So as we face the future, and search for opportunity, as this conference theme puts it, I want to say this to you in drawing my remarks to a close:

Scotland's farmers, crofters and producers are the foundation of so much more than our economy. You are the stewards of our iconic landscapes, drivers of innovation and the heart of rural communities.

You've faced a challenging year: storms, uncertainty, changing markets. But you've faced them with resilience, with care for your neighbours and with deep pride in your work.

My message today is simple: Thank you for all that you do.

This government sees what you do and we will stand with you, not just in words but through investment, action and partnership.

In the process of doing that, I have been greatly served and assisted in my time as First Minister by the steadfast support and engagement with industry by the Cabinet Secretary Mairi Gougeon, who has held that office since 2021.

She has been a powerful advocate for rural Scotland around the Cabinet table, always engaging with this industry and always bringing the voice of this industry right to the very heart of government.

Much against my choice, Mairi has decided not to seek re-election at the Scottish Parliament election in May. So I want to take this opportunity, at the last NFUS Conference before the election, to express my warmest thanks to Mairi Gougeon for being an absolute servant of the agriculture sector and a powerful voice for rural Scotland – I wish her well.

I want Scottish agriculture to carry the confidence of the next generation in Scotland. I want the next generation to be excited to be a part of the future of Scottish agriculture. I want them to know agriculture is supported not only by the enduring land they love, but by a government that supports them every step of the way. Walking with you, is my pledge, as we navigate the period ahead.

So let us work together – as Team Scotland – to build a future where our farmers have the confidence to invest in their businesses, to believe in their future, to keep doing what they do best, to encourage a new generation to be a part in sustaining this industry on which our country is founded: producing world-class food, sustaining vibrant communities and shaping the land and legacy of Scotland for generations to come.

In so doing, you will have the support of the Scottish Government that I lead.

Thank you very much.