Scottish Budget 2026 to 2027

Chapter 11 Rural Affairs, Land Reform & Islands

Portfolio Responsibilities

The Rural Affairs, Land Reform and Islands portfolio is investing in Scotland’s agriculture, forestry, food and drink, and marine sectors, securing a sustainable, productive and prosperous future for our rural economy. Its responsibilities span farming and food production, fisheries and aquaculture, animal and plant health, peatland restoration, woodland expansion, rural and island development, land reform, crofting, national parks and natural capital.

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 includes £26 million for Agricultural Modernisation, vital investment for our farming and food and drink industries. The Agri-Environment Climate Scheme will continue to tackle climate change, helping producers reduce emissions and enhance nature.

Crofting remains vital to the Highlands and Islands and is supported through funding of £4.4 million for the Crofting Agricultural Grant and Croft House Grant schemes. We will also invest £1.3 million in skills for regenerative and sustainable farming and food production, provide funding for Lantra Scotland, implement the Land Based Learning Review recommendations and promote agritourism. We will work with local authorities and health boards to support Good Food Nation Plans, and the Scottish Food Commission is being established to advance Scotland’s food policy.

Restoring peatland and creating woodland are critical to climate and biodiversity goals and sustaining rural jobs, directly contributing to FM’s priorities for tackling climate change and growing the economy. We will invest £28 million to restore over 10,000 hectares of peatland and £37 million to create more than 12,000 hectares of woodland.

Island communities will benefit from a new National Islands Plan, continuation of the Carbon Neutral Islands project, and £7.1 million for island-specific investments. £9.3 million will be invested in Community Led Local Development, as we consider findings from the Scottish Rural Communities Policy Review.

The Land Reform (Scotland) Act 2025 will increase transparency over land use in Scotland. We will allocate £7 million to the Scottish Land Fund to support communities to own land.

Marine Fund Scotland will increase to £16.6 million to deliver Blue Economy outcomes. We will begin the replacement programme for two Marine Protection and Research vessels to ensure they continue to safeguard fish stocks, underpinning a Scottish fishing industry that supports over 4,200 jobs. We will continue important programmes of fisheries modernisation and continue to work to realise our Vision for Sustainable Aquaculture and streamline the aquaculture consenting process.

Our 2026-27 plans will continue investment in rural communities and industries, supporting them to produce food sustainably, steward land responsibly and meet the climate challenge.

Rural Affairs, Land Reform & Islands intended contributions to the National Outcomes

Primary National Outcomes

• Environment
• Communities
• Economy
• Fair Work and Business

Secondary National Outcomes

• Children and Young People
• Education
• Human Rights
• Poverty
• International
• Culture
• Health

Rural Affairs, Land Reform & Islands

The prior year 2025-26 Budget Comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2024-25 Scottish Budget comparator figures reflect the outturn numbers for that year.