Rural Support Plan (RSP)

Overview of Support

Support Structure

This initial Rural Support Plan introduces the use of Scottish Government’s four-tier framework to deliver support to farmers and crofters as Scotland’s new, unique domestic support framework.

The four-tier framework provides conditional payments under four-tiers - Base, Enhanced, Elective and Complementary. Diagrams were first published as part of the Agriculture Bill Consultation Delivering our vision for Scottish agriculture - proposals for a new Agriculture Bill in August 2022.

Each Tier has a different purpose and contributes differently towards Scottish Government’s strategic outcomes:

Tier 1: Base and Tier 2: Enhanced are direct payments

• Tier 1: Base will provide direct payments to support active farming. We will start off using the current Basic Payment Scheme (BPS) and develop this over time. Receiving this support will require meeting what will be called essential standards (e.g. Cross Compliance, Whole Farm Plan).
• Tier 2: Enhanced will support farmers and crofters whose agricultural practices do even more for climate and nature. Measure will be designed to be integrated alongside existing farming systems supporting continuity of sustainable food production. It will build on the standards established in Tier 1 and provide additional measures to reduce greenhouse gas emissions and restore and improve nature for those who opt to go further.

Tier 3: Elective and Tier 4: Complementary are indirect payments

• Tier 3: Elective will support action that creates and/or protects habitats or species or improves business sustainability. It will focus on funding targeted actions for climate change and nature restoration. This could be specific to a particular species or habitat, the creation of new agroforestry systems or woodlands, supporting conversion to alternative forms of agriculture such as organic production, encourage innovation and provide supply chain support. Aspects of Tier 3 will initially be delivered through familiar mechanisms such as AECS, with improvements to the scheme made.
• Tier 4: Complementary will help to grow skills and capabilities. This will include training and advice, including for sustainable and regenerative skills development. It will focus on ensuring applicants are prepared for the suite of management options, new practices, and innovation under Tiers 1-3. Additionally, Tier 4 goes beyond support for agriculture as it also provides for support for community-led approaches in rural and island areas as well as supporting the capacity building and networking of rural communities.

This Plan reflects what is currently available through legacy CAP support, including the Scottish Rural Development Programme (SRDP) and other existing support, mapped into the new four-tier framework.

Support described in the Plan may therefore be provided other than under the Agriculture and Rural Communities (Scotland) Act 2024, but is still relevant to understanding the context of the intended transition to future forms of support under that Act.

Each scheme requires farmers and crofters to undertake actions that deliver towards scheme outcomes, which in turn will deliver towards the outcomes for the Tier thus delivering the programme outcomes, the ARC Act objectives and the Vision for Agriculture

Support Schemes

The accompanying document “Support within the Four-Tier Framework” outlines support currently available through legacy CAP support, the Scottish Rural Development Programme (SRDP) and other existing support, mapped into the new four-tier framework including a description, eligibility, time periods and the outcomes each scheme is looking to achieve.

Amount of Support

The Scottish Budget

The Scottish Budget 2026-2027 (the Budget) allocates funding to the Rural Affairs, Land Reform and Islands (RALRI) portfolio. That funding is then split between several areas namely: Agricultural Support, Rural Services, Marine, Islands, Land Reform, Scottish Forestry, Natural Resources and Research. The Budget contains a table for each of those areas showing how the funding allocated to each of them is further broken down. Those tables can be found here Scottish Budget 2026 to 2027.

The RALRI section of the Budget states:

“We will provide over £660 million in support to Scottish farmers, crofters, land managers and rural communities, maintaining direct payments and investing in transforming farming and food production”

This figure is made up of the Agricultural Support and Rural Services tables mentioned above, less the administrative costs of running Scottish Government’s Agriculture and Rural Economy Directorate, an expense contained within the Agricultural Support table.

The Rural Support Plan provides over £711 million in support, both within and outwith the tiers. This is because the Rural Support Plan includes the Woodlands Grants budget from Scottish Forestry (which was included in the SRDP budget) at £58.7 million. The spending between tiers and individual schemes within the tiers is set out in the illustrative split between schemes table below. £677 million is included within the tiers, whilst the additional £34 million sits outwith the tiers and is narrated below.

Rural Support Plan requirements

The ARC Act requires the Rural Support Plan to show how the budget will be divided between support schemes

The table below illustrates:

1. what is currently available through legacy CAP support, the Scottish Rural Development Programme (SRDP) and other existing support, mapped into the new four-tier framework,

2. how we intend to split the budget between the support schemes

This is based on the figures for 2026-2027 and 2025-2026.

Illustrative Budget Split Between Support Schemes

It should be noted that:

• *Other Schemes includes: Sea Eagles Management Scheme, Sea Eagles research and Veterinary Grants
• **Other Schemes includes: LIDAR, MyHerdStats, Agritourism Monitor Farm, FONE, Skillseeder, Rural Cohesion and Lantra
• ***Spend in Tier 1 is demand led, figures shown for schemes are the maximum spend available to that scheme whilst the total for the tier represents the total tier budget available
• ****Expenditure for the Crofting Cattle Improvement Scheme (CCIS) is funded through ARE operational costs. ARE operational costs are excluded from the Plan as per the above. Accordingly, CCIS expenditure is noted but is not included in the Tier total.
• Figures represent approximations due to the demand led nature of much of agricultural support, final outturns are reported as normal
• Budget decisions are subject to the UK and Scottish Government budget process each year. Scottish Government only receive an annual budget from UK Government.
• Confirmation of budget allocation between Tiers and Schemes is subject to Ministerial decisions each year, and will be guided by how plans to deliver certain outcomes are progressing.

Additional spend outwith 4 Tiers

Per information above, £677 million is included within the tiers, whilst the additional £34 million sits outwith the tiers and is allocated to the following:

• Animal diseases (£23.5M)
• Smaller scale, one-off and generalist rural support including; SAYFC Big Build, RSABI, Farmstrong, Tenant Farmers/Agricultural Holdings, SASA Agricultural Wages and Rural Industry Engagement and Food and Drink Industry Strategy (combined circa £10M)

The ARC Act requires the Rural Support Plan to set out an indication of the total amount of support that is expected to be provided over the Plan Period.

To give farmers and crofters an indication of how funding will be targeted over the 5 year plan period, we have made three commitments:

• over time, at least half of all funding will be targeted towards nature restoration and climate mitigation and adaption
• 70% of funding will be allocated to Tiers 1 and 2
• we will apply a funding split of 70 / 30 between Tiers 1 and 2

Multi-year funding for the industry is required for long term certainty to underpin investment. Scottish Government only receive an annual budget from UK Government.

However, our budget and spending review, as well as this Plan, set out a clear line of sight. We have committed to a period of certainty until 2030 and beyond.

The table below illustrates:

• what is currently available through legacy CAP support, the Scottish Rural Development Programme (SRDP) and other existing support, mapped into the new four-tier framework,
• for each tier, the budget allocated for each scheme added together to give the total budget for each tier
• how we intend to split the budget between tiers over the 5 year plan period to move towards these commitments.

This is based on the current figures for 2026/2027 and 2025/2026.

Illustrative Budget Split Between Tiers over the Plan Period

It should be noted that:

• Figures represent approximations due to the demand led nature of much of agricultural support, final outturns are reported as normal.
• Budget decisions are subject to the UK and Scottish Government budget process each year. Scottish Government only receive an annual budget from UK Government.
• Confirmation of budget allocation between Tiers and Schemes is subject to Ministerial decisions each year, and will be guided by how plans to deliver certain outcomes are progressing.
• The shift in allocations from Tiers 1 to Tiers 2, 3 and 4 in years 2030/31 is indicative at this stage. Tier allocations are designed to be flexible to ensure desired outcomes can be delivered in changing circumstances

Through to 2030 we will deliver a period of certainty, investment and preparation.

An ongoing programme of improvements and reforms will continue to the existing support packages that the industry use now and understand. Any changes will be developed in partnership with stakeholders, delivering incremental positive changes which work for climate, nature and sustainable food production. Changes to the existing support in this period will support our active farmers and crofters to continue food production in ways that are more beneficial for nature and climate outcomes.

Our position is clear; this Government will continue to back our active farmers and crofters.

In this period we will work with the industry to ensure that support works for and delivers financial stability and investment to our active producers. We will ensure that the sustainable and regenerative measures within the future Tier Two Enhanced support are practicable and flexible reflecting the diversity of Scotland’s farming systems. Further, we will deliver an approach where support is directed at those active farmers and crofters.

The powers of the ARC Act, the nature of the Four Tier approach and its Monitoring and Evaluation Framework enables flexibility once the new support packages go live. Our approach is to co-design, to listen, to monitor and to respond. If it becomes clear that future support is not working for the industry and our shared outcomes then we will be able to react and to change course. We are clear that outcomes can only be realised with a vibrant farming and crofting community and that support must work for them.

The proposed changes to future funding allocations between the tiers at the end of this Plan Period will be developed and delivered in a way which supports those active farmers and crofters, ensuring continued financial stability and investment. A range of mechanisms will be carefully considered to achieve changes in funding allocations between the tiers. As an example of this proposed approach, we are considering how future LFASS and voluntary coupled support may be delivered in a way which rewards activity and better supports sustainable and productive farming and crofting. We know that those working on our most challenging land and in our communities farthest from market also deliver so much more than agricultural output – they are crucial in underpinning thriving rural communities.

Right now we are co-designing a more effective approach to recognise, reward and further incentivise the critical environmental and social benefits brought about by such active producers. Those farmers and crofters who are actively working the land will be the beneficiaries of that public support in any allocation changes. Our future support package will enable active producers to co-operate and collaborate in ways right for their businesses. As we work together up to 2030, we will continue to consider what more can be done to enhance biodiversity, nature restoration, sustainable food production and to reduce emissions through active production.

Crucially we will also ensure that access requirements to our support schemes is proportionate - that means for smaller producers and crofters we will put in place streamlined requirements which better reflect their needs – an approach we have already implemented through the small herd derogation.

Agricultural Reform Route Map

The Rural Support Plan describes support during the period of the phased transition from legacy EU Common Agricultural Support (CAP) into the new Scottish four-tier framework and sets out the proposed timescale for change over the first Plan Period of 2026-2031.

It builds on the initial Agricultural Reform Route Map published on Scottish Government’s Rural Payments and Services website that outlined the first steps in Scotland’s agricultural reform journey.

Changes to support will be made incrementally (during the 5 year period of this initial Rural Support Plan and during the 5 year periods of subsequent Rural Support Plans) allowing for a transition from legacy CAP and SRDP support to the four-tier framework, while avoiding cliff edges or sudden changes to support for farmers and crofters.

Agricultural Reform to Date

2025

In the first year of Scotland’s agricultural reform journey, Scottish Government introduced the first changes to agricultural support:

• The Whole Farm Plan

The Whole Farm Plan requires farmers and crofters to review their current land and livestock management practices. There are five audits and plans that make up the Whole Farm Plan. Farmers and crofters will need to complete at least two to be eligible to claim Basic Payment Scheme support. This will enable farmers and crofters to create a baseline of their current agricultural practices, to look for and make improvements (such as opportunities to reduce costs, cut emissions or protect biodiversity) and to measure progress over time. The Whole Farm Plan is designed to help meet Scottish Government’s outcomes but can also help farm businesses improve their efficiency and cut costs.

• A new calving interval for the Scottish Suckler Beef Support Scheme

The longer it takes to get a cow back in calf, the more time she will 1) incur maintenance costs (e.g. feed, veterinary care), and 2) emit greenhouse gases without contributing to beef production. That’s why Scottish Government will only support calves who are either 1) the first offspring registered to the dam, or 2) born to a dam with an established calving interval of 410 days or less. This will help to reduce emissions and encourage efficient beef production.

• New protections for peatlands and wetlands

Access to the Basic Payment Scheme is conditional upon meeting Essential Standards. Cross Compliance regulations are split into Statutory Management Requirements (SMRs) and Good Agricultural and Environmental Conditions (GAECs), safeguarding animal health and welfare as well as soils, habitats, and landscape features on agricultural land. Peatlands and wetlands play an important role in storing carbon and slowing down the effects of climate change. New requirements have been added to GAEC 6: Maintenance of soil organic matter prohibiting a range of activities on peatlands and wetlands. This ensures these important natural assets are protected.

These changes were complemented by additional funding for farmers and crofters:

• Future Farming Investment Scheme (now closed) provided £21.4M in capital grants for capital investments that will deliver at least one of the following outcomes:
  • improve business efficiency and sustainability;
  • protect, restore, or enhance the environment;
  • reduce greenhouse gas emissions and/or
  • mitigate the effect of climate change.

This scheme will be running for a second round in 2026/2027 with a budget of £14.25M.

• Preparing for Sustainable Farming Scheme (now closed) provided financial support with meeting the Whole Farm Plan requirements.

Indicative Agricultural Reform Route Map 2026 onwards

As the Scottish Government enters the second year of the agricultural reform journey, further anticipated changes can be added to the Agricultural Reform Route Map as follows:

2026 – 2029

• A period of certainty for farmers and crofters by maintaining payments through familiar support mechanisms within the newly launched four-tier framework.
• We will continue to provide investment, knowledge and advice to support the adoption of sustainable and regenerative practices to prepare businesses for changes to future support.
• This includes the publication of the Code of Practice on Sustainable and Regenerative Practice.

2026

• Introduction of Enhanced Greening requirements – farmers and crofters with more than 15 hectares of arable land will be required to dedicate 5% of their land to Ecological Focus Areas, helping to increase the amount of land managed for the benefit of climate and nature
• Introduction of Food and Drink Processing Support (£9M)
• Introduction of the Agritourism Investment Scheme (£1M)
• Introduction of small herd derogation to Scottish Suckler Beef Support Scheme for small farmers and crofters
• Completion of Scottish Rural Communities Policy Review. This will include publication of the evaluations of the Community Led Local Development programme, Scottish Rural Network and Scottish Rural Action, in March 2026, and a report on the future vision and recommendations for rural communities policy and support, in June 2026. Further information about the Review is available on the Rural Exchange website.

2027

• Strengthening of Enhanced Greening requirements – farmers and crofters with more than 15 hectares of arable land will be required to dedicate 7% of their land to Ecological Focus Areas, further increasing the amount of land managed for the benefit of climate and nature

2028

• All farm businesses will have completed their Whole Farm Plans.
• Introduction of AKIS (Agricultural Knowledge and Innovation System) which will build on and improve the current AKIS in Scotland, to bring together and encourage better links and integration between people and organisations that produce and use knowledge for agriculture and interrelated fields. This will give recognition to the importance of collaboration between different stakeholders and encourage this through more effective and efficient flows of knowledge and innovation between stakeholders. This will involve farmers, advisors, as well as higher educational institutions, researchers and industry organisations. A well-functioning AKIS, will be expected to help Scotland become a leader in regenerative and sustainable agriculture.

2030 onwards

• Support mechanisms within the four-tiers will be reformed to more explicitly require the adoption of sustainable and regenerative practices, relevant to each business.
• This will involve the implementation of revised eligibility and activity requirements (all tiers), essential standards for the base tier, packages of measures for the enhanced tier, targeted measures and conditions for the elective tier, and appropriate learning and knowledge transfer activities in the complimentary tier.
• These will continue to be developed through working in partnership with farmers and crofters to get this right for them and communicated in advance.
• Preparation, laying and publication of the Rural Support Plan for 2031-2036.

Throughout this period, Scottish Government will also make the required changes to our ways of working to improve our support for farmers and crofters and make delivery more effective and efficient.

We will also better prepare and make ready our industry for Scotland’s transition to a more sustainable and regenerative way of farming in order to meet the ambitions of Scottish Government’s Vision of Agriculture.