The National Sheep Association (NSA) Scottish Region has shared its conflicting feelings about Scottish Government’s new budget, released 13th January, and what it could mean for sheep farmers.

The Budget maintains core support and adds capital funding through the Agricultural Modernisation Fund but falls short on multi-year certainty and strategic investment. There is no clear commitment on predator management or transparency around previous infrastructure schemes. While payments remain, disappointingly, they do not rise in real terms to match inflation.

NSA Scottish Policy Officer, Faye Bryce says: “In our open letter to Scottish Government, NSA called for multi-year, ring-fenced farm support, protection for LFASS and SUSSS payments, transparency on infrastructure schemes, and investment to reverse the decline in the national flock. We also highlighted wider pressures such as predation, inheritance tax changes and abattoir viability.”

NSA Scotland has reviewed the figures against priorities and calculated what they mean in real terms for sheep farmers.

The values issued by government:

2024–25 outturn: £666.2m
2025–26 Autumn Budget Revision (ABR): £719.0m
2026–27 draft: £703.2m

Adjusted for inflation Office for National Statistics Consumer Prices Index (ONS CPI), the picture changes:

2024–25 to 2025–26: +4.5%
2025–26 to 2026–27: −4.4%

So, after a peak in 2025, support falls back to roughly 2024–25 levels in real terms.

Faye adds: “Cash figures look steady, but inflation means next year’s support is similar to that of two years ago. NSA will keep pressing for clear, practical schemes so payments deliver real benefits, such as better flock health, grazing management and low-carbon improvements. Stability and confidence are vital if we are to keep sheep on Scotland’s hills and uplands.”

NSA will continue to engage with government on behalf of members to ensure future budgets deliver for sheep farmers and rural communities.